To the attention of all insurance companies licensed
to transact automobile insurance in Ontario
The Financial Services Commission of Ontario (FSCO) has published the 2002 indexation percentage for the Optional Indexation Benefit under Section 29 of the Statutory Accident Benefits Schedule (Bill 59). Also published are the 2002 indexation percentage and revised deductibles/monetary amounts applicable to claims under the Statutory Accident Benefits Schedule (Bill 164).
These amounts appear in the December 1, 2001 edition of The Ontario Gazette.
The indexation percentage for Bill 59 and Bill 164 claims reflects the year-over-year "Consumer Price Index for Canada (All Items)" from September 2000 to September 2001, as published by Statistics Canada.
Indexation under Bill 59
The 2002 indexation percentage is 2.6 percent. It is applied in accordance with the "Optional Indexation Benefit Guideline" dated October 28, 1996. Under Bill 59, indexation applies to named insureds, spouses or same-sex partners of named insureds, dependants of any of these and specified drivers, where the optional indexation benefit was purchased.
The 2002 indexation percentage applies to benefits that are required to be indexed pursuant to Section 29 of the Statutory Accident Benefits Schedule in respect of insured persons who were involved in accidents on or after November 1, 1996.
Indexation under Bill 164
The 2002 indexation percentage is 2.6 percent. It applies to benefits that are required to be indexed pursuant to Section 80 of the Statutory Accident Benefits Schedule in respect of insured persons who were involved in accidents after December 31, 1993, and before November 1, 1996.
The 2002 indexation percentage, the revised deductibles and monetary amounts are listed on the enclosed chart, entitled 2002 Indexation Percentage, Revised Deductibles and Monetary Amounts for Automobile Insurance under the Insurance Act and the Statutory Accident Benefits Schedule -- Accidents After December 31, 1993 and Before November 1, 1996.
For More Information
Questions about this bulletin or the enclosures should be referred to Tony Toy at the Automobile Insurance Policy Unit. The phone number is (416) 590-7257, and the fax number is (416) 590-7265.
Chief Executive Officer and
Superintendent of Financial Services (Acting)
January 4, 2002