To the attention of all insurance companies licensed to
transact automobile insurance in Ontario
The Ontario Insurance Commission is reproducing here, for insurers' easy reference, recently published information by the Ontario government announcing the 1998 optional indexation percentage that applies to insured persons receiving Statutory Accident Benefits under Bill 59 (the Automobile Insurance Rate Stability Act, 1996), if they qualify for the optional indexation benefit.
Also included is the 1998 indexation percentage, the amount of average weekly earnings for Ontario, and new deductibles/monetary amounts, which apply to persons receiving Statutory Accident Benefits under Bill 164.
These amounts have been published in the December 6, 1997 edition of The Ontario Gazette.
The indexation percentage for both Bill 59 and Bill 164 claims reflects the year-over-year Consumer Price Index for Canada (All Items) from September, 1996 to September, 1997, published by Statistics Canada.
Indexation under Bill 59
The 1998 indexation percentage that is applied to benefits and monetary amounts on January 1, 1998 is 1.6%. It is applied in accordance with the "Optional Indexation Benefit Guideline" - October 28, 1996. Under Bill 59, indexation is relevant only to insured persons where the optional indexation benefit is purchased. The 1998 indexation percentage relates only to accidents that occurred on or after November 1, 1996 and before January 1, 1998.
Indexation under Bill 164
The 1998 indexation percentage that is required to be applied to benefits and monetary amounts on January 1, 1998 is 1.6%. It applies to existing and continuing benefits that are required to be indexed and payable to insured persons who were involved in accidents after December 31, 1993 and before November 1, 1996.
The 1998 indexation percentage, the revised deductibles and monetary amounts are listed in the enclosed chart, entitled 1998 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).
OIC Contact for information
If you have any questions regarding the attached chart or matters outlined in this Bulletin, please contact Tony Toy at the Ontario Insurance Commission's Accident Benefits Analysis Unit -- tel. (416) 590-7257, fax (416) 590-7265.
December 8, 1997