Regulation - LGIC

Proposed Amendments to Insurance Act Regulation 461/96 (Court Proceedings For Automobile Accidents That Occur on or After November 1, 1996)

Regulation Number(s):
O. Reg. 461/96: Court Proceedings For Automobile Accidents That Occur on or After November 1, 1996
Bill or Act:
Insurance Act
Summary of Decision:
Amendments to Ontario Regulation 461/96 (Court Proceedings For Automobile Accidents That Occur On Or After November 1, 1996) have been approved.
Further Information:
Proposal Number:
15-MOF012
Posting Date:
May 14, 2015
Summary of Proposal:
Further to the 2015 Ontario Budget commitment to ensure that the auto insurance system reflects the effects of inflation and to restore the policy rationale and integrity of the tort deductibles to when they were last updated in 2003, amendments to Insurance Act Regulation to 461/96 (Court Proceedings For Automobile Accidents That Occur On Or After November 1, 1996) are proposed to adjust the deductibles on court awards for non-pecuniary (i.e. pain and suffering) damages to reflect inflation since 2003, and link the deductibles to future changes in inflation.

The current $30,000 deductible amount in the case of damages for non-pecuniary loss would be adjusted to $36,540 until December 31, 2015, and on January 1, 2016 and every subsequent year, this amount would be revised by adjusting the amount by the indexation percentage published under Insurance Act subsection 268.1 (1) for that year.

The current $15,000 deductible amount in the case of damages for non-pecuniary loss under clause 61 (2) (e) of the Family Law Act, would be adjusted to $18,270, and on January 1, 2016 and every subsequent year, this amount would be revised by adjusting the amount by the indexation percentage published under Insurance Act subsection 268.1 (1) for that year.

These proposed regulation amendments are consistent with the Building Ontario Up Act (Budget Measures), 2015 proposed amendments that, if passed, will amend the Insurance Act to adjust the monetary thresholds beyond which the tort deductible does not apply to reflect inflation since 2003, and link the thresholds to future changes in inflation.

Existing optional coverage (Added Coverage to Offset Tort Deductibles) to reduce the tort deductible amounts will remain unchanged, and consumers will continue to have options to customize their coverages to suit their needs.
Contact Address:
Insurance Policy Unit
Financial Institutions Policy Branch
Ministry of Finance
95 Grosvenor Street
Frost Building North, 4th Floor
Toronto, Ontario
M7A 1Z1
Effective Date:
August 1, 2015
Decision:
Approved