Fair
is fair
Car
insurance premiums should go to victims – not profits
By-line:
Greg Goulin
When
it comes to auto insurance, you don’t always get what you thought you
paid for. If you become involved in an auto accident, you could be in for
a shock.
More
than 17 years ago, the Ontario government changed all auto insurance
policies to include drastically expanded “no fault” benefits. This
means that if you are injured in a car accident, your own insurance
company will pay to replace some of your lost income and pay for some of
your medical and rehabilitation costs, and other expenses. This is true
even if you were the person who caused the car accident.
If
you believe that the accident was not your fault, you may want to sue the
other driver for the losses that aren’t covered under the “no fault”
rules. People who want to sue are usually people who have been badly hurt,
who will take a long time – if ever – to recover from their injuries,
or may never be able to work again.
Before
you can recover any money for your pain and suffering, you must first
prove that your injuries are severe enough, and that you will never get
better. In other words, your injuries must reach a certain “threshold”
before you can recover anything for your pain and suffering from the
person who caused your injury.
This
“threshold” has been part of no fault insurance since it was
introduced to Ontario almost two decades ago. But in 2003 this threshold
was changed so that fewer injured people are allowed to recover their
actual losses caused by a wrongdoer. For example, if you are off work for
two years before you are finally able to return, you cannot recover
anything for your pain and suffering. If you are able to get back to work
but cannot continue with your regular exercise and sports activities, and
cannot play with your children or even lift them up to give them a hug,
you cannot recover anything for your pain and suffering. Is this fair?
To
add insult to injury, in many cases even if you do get over the threshold,
the insurance companies get to keep part of your money through a
deductible.
Deductibles
were also increased in 2003, so that injured people and their families
