Changes In Law Affect The Adequate Liability Insurance Coverage In Ontario

Authorities in Canada do not like to hit Canadians with nothing but bad news. In 2011, a change in the laws that applied to drivers reduced the benefits available to any driver involved in an accident. At the same time, the 2011 change provided drivers with the chance to make up for the lost benefits by purchasing additional coverage.

Statistics that came to light, following imposition of the changes

Statistics collected between 2011 and 2018 showed that only 7% of the qualified drivers had taken advantage of the available, optional insurance. Moreover, statisticians unearthed other troubling figures. Those showed that only 6% of drivers had chosen to pay for extra medical coverage. Those findings forced an evaluation of the 2-part policy that must be purchased by all drivers in Ontario.

Benefits awarded, according to the original 2-part policy

One part called for the awarding of statutory accident benefits. Award money went to an injured victim, regardless of who had been found at-fault for a given accident. The awarded money covered medical expenses and income replacement.

The second part dealt with the tort angle of the accident. It covered the injuries suffered by the other driver, if the policy holder were found at-fault. Both parts were part of a policy sold by a private company, even though the government had mandated the drivers’ possession of such a policy.

New laws and newer policies

One thing was not new; private companies continued to sell the required insurance policies. Yet the government had to alert those same companies to the changes that would have to be made in each policy. One such change related to the amount of money awarded to victims that had pursued a personal injury claim.

The personal injury lawyer in Waterloo knows that the maximum size of the award for both minor and serious injuries had been increased. A victim with a minor injury could claim no more than $3,500.00. A victim with a serious condition could claim no more than $50,000.00.

At the same time, drivers got the chance to add enhanced options to their policy. The optional coverage would include reimbursement for medical expenses and lost income, in addition to money for other needs. For instance, policy holders with the enhanced option could get reimbursed for caregiver expenses, housekeeping costs, home maintenance costs, childcare and, if necessary, for death and funeral expenses.

Alterations to the insurance policies sold to residents of Ontario reflected more closely, the sort of coverage given to Europeans with medical problems. Such men and women receive financial help from the government. That help not only covers the costs of medical care and income loss, at the same time, that help pays for any added amount of childcare.

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