2015 Indexation Percentages under the Statutory Accident Benefits Schedules

Bulletin

No. A-16/14

Property & Casualty

– Auto

To the attention of all insurance companies licensed to transact automobile insurance in Ontario

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With this Bulletin, the Financial Services Commission of Ontario (FSCO) is releasing:

the 2015 indexation percentage for the Optional Indexation Benefit under section 30 of the Statutory Accident Benefits Schedule – Effective September 1, 2010,
the 2015 indexation percentage for the Optional Indexation Benefit under section 29 of the Statutory Accident Benefits Schedule – Accidents on or after November 1, 1996 (Bill 59 SABS), and
the 2015 indexation percentage and revised deductibles/monetary amounts applicable to claims under the Statutory Accident Benefits Schedule – Accidents after December 31, 1993 and before November 1, 1996 (Bill 164 SABS).

In accordance with sections, 268.1 (1) and 268.1 (3) of the Insurance Act, the indexation percentage and revised deductibles/monetary amounts applicable to Bill 164 SABS will appear in a forthcoming edition of The Ontario Gazette.

The indexation percentage for the Statutory Accident Benefits Schedule – Effective September 1, 2010, Bill 59 SABS and Bill 164 SABS reflects the year-over-year "Consumer Price Index for Canada (All Items)" from September 2013 to September 2014, as published by Statistics Canada.

Indexation under the Statutory Accident Benefits Schedule – Effective September 1, 2010

The 2015 indexation percentage is 2.0 per cent. It is applied in accordance with the Optional Indexation Benefit Guideline. The indexation applies to named insureds, spouses of named insureds, dependants of any of these and specified drivers, if the optional indexation benefit was purchased.

The 2015 indexation percentage applies to benefits that are required to be indexed pursuant to section 30 of the Statutory Accident Benefits Schedule – Effective September 1, 2010 in respect of insured persons who were involved in accidents on or after September 1, 2010.

Indexation under Bill 59 SABS

The 2015 indexation percentage is 2.0 per cent. It is applied in accordance with the Optional Indexation Benefit Guideline. Under Bill 59 SABS, indexation applies to named insureds, spouses of named insureds, dependants of any of these and specified drivers, if the optional indexation benefit was purchased.

The 2015 indexation percentage applies to benefits that are required to be indexed pursuant to section 29 of Bill 59 SABS in respect of insured persons who were involved in accidents on or after November 1, 1996 and before September 1, 2010.

Indexation under Bill 164 SABS

The 2015 indexation percentage is 2.0 per cent. It applies to monetary amounts that are required to be raised pursuant to section 80 of Bill 164 SABS, in respect of insured persons who were involved in accidents after December 31, 1993 and before November 1, 1996.

The 2015 indexation percentage, the revised deductibles and monetary amounts are listed on the enclosed chart, entitled 2015 Indexation Percentage, Revised Deductibles and Monetary Amounts for Automobile Insurance under the Insurance Act and Statutory Accident Benefits Schedule – Accidents after December 31, 1993 and before November 1, 1996.

Also note that certain indexed amounts under Bill 164 SABS have been identified in the indexation schedule as possibly no longer being relevant in certain cases. Please refer to the relevant provisions in Bill 164 SABS to determine if these indexed amounts apply to your situation.

Brian Mills
Chief Executive Officer and
Superintendent of Financial Services

December 19, 2014