The Ontario Ministry of Finance is seeking feedback on proposed amendments to the province’s Insurance Act which will require insurers to make benefits mandatory to offer but optional to purchase for consumers. The changes also affect auto insurance payment priorities for medical and rehabilitation benefits – the amended Act would require auto insurers to pay these expenses for injuries before the expenses are paid by supplementary health insurance plans.
“Currently, the Insurance Act provides that auto insurance is excess insurance to any other insurance indemnifying the injured person. Accordingly, an insured person who sustains an impairment because of an auto accident must exhaust their supplementary health insurance plan benefits before these expenses are submitted to an auto insurer for payment,” the ministry states. “This proposal, if implemented, would reduce the risk of a consumer exhausting their supplementary health insurance plan benefits for expenses related to an auto accident.”
The proposed changes also require insurers to make all benefits outside of medical, rehabilitation and attendant care mandatory to offer under every contract, but optional to purchase for consumers.
Both provisions, they say, will have limited transition compliance costs related to system changes and product development. “These costs are expected to be offset by longer term savings,” the government further adds. Comments on the proposed changes are due to the province’s Ministry of Finance by September 9.
