Automobile Insurance Changes

 

Bulletin

No. A-11/01
- Auto
Property & Casualty
[bulletinToTheAttentionOf]

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

 

The Ontario Government has recently approved two changes to regulations relating to the operation of the statutory accident benefits. These amendments have been the subject of several consultations.

 

  1. Treatment of Income Continuation Plans
    The Statutory Accident Benefits Schedule-Accidents on or after November 1, 1996 (Ontario Regulation 403/96) has been amended to clarify that payments of disability pension benefits under the Canada Pension Plan and certain other periodic payments of insurance that meet criteria established by the regulation, can be deducted from income replacement benefits.

    This amendment will apply to accidents that occur on or after January 1, 2002.

  2. Settlement of Statutory Accident Benefits
    Section 9.1 of Ontario Regulation 664, relating to the settlement of statutory accident benefits, has been amended to simplify and clarify the requirements for the settling of a claim. The revised regulation provides for a standard disclosure statement, a two-day “cooling off” period after a settlement release has been signed, the elimination of the requirement for insurers to provide a commuted value calculation, and clarification of a claimant’s rights and obligations in order to dispute the settlement.

This regulation change will apply with respect to settlements made on or after March 1, 2002. Three new settlement forms will also be released early in the new year relating to the settlement of claims under the current (Bill 59) and previous (Bill 164, Bill 68) automobile insurance systems.

 

An insurance industry/legal working group recommended this regulation change to address concerns relating to the current requirements.

Copies of the Regulations

 

These regulation changes will appear in the December 29, 2001 edition of The Ontario Gazette. A copy of these regulation amendments are attached.

Consultation Paper

 

The Ontario Government is currently reviewing submissions received in response to its consultation paper, Review of the Current Automobile System. This will result in further changes to improve the automobile insurance system in 2002.

 

Philip Howell
Chief Executive Officer and
Superintendent of Financial Services (Acting)
December 19, 2001

 

Attachments (PDF):

Ontario Regulation 482/01 Made Under the Insurance Act
Ontario Regulation 483/01 Made Under the Insurance Act

 
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