Coverage choices, consumer protection and tight cost controls—that’s the future for Ontario’s auto insurance system, according to the province’s long-awaited changes.
The Financial Services Commission of Ontario (FSCO) presented a list of auto insurance reforms in a March 3 bulletin to insurers. The new framework includes many of the measures outlined in the commission’s Five-Year Review of Auto Insurance, stressing consumer choice when it comes to coverage, caps on assessment fees and limits on how insurers can use credit scores.
The changes will take effect September 1, 2010.
Accident benefits redefined
The amendments centre on a new Statutory Accident Benefits Schedule (SABS), establishing new minor injury guidelines—for whiplash disorders--capping minor injury medical and rehab assessment costs at $3,500, capping all other assessments at $2,000, and getting rid of “rebuttal examinations” altogether.
Drivers can choose $50,000 in standard, non-catastrophic medical and rehab coverage, or opt for richer, $100,000 or $1.1 million packages, as well as additional caregiver options.
The measures also attempt to streamline the claims process following an accident by simplifying the rules, combining treatment plans and assessment approvals into one process and eliminating certain forms.
They also do away with some red tape, making appraisals mandatory for property damage when requested by an insurer.
Consumer protection
But the consumer is at the core of many changes: insurers are prohibited from dragging out the claims process, either by discouraging or deflecting claims, and the first insurer to receive a completed application is now required to pay out a claim right away.
The new rules also put use of credit scores under the microscope, banning use of credit information for quoting or renewals, and further defining credit information to include not only a credit rating, but an credit-based insurance score, and even the place of residence or number of dependents.
No comments:
Post a Comment