Regulation (September 01, 2008)

IBC CALLS FOR MINOR INJURY CAP ON POST-PAF ASSESSMENTS IN ONTARIO

The Insurance Bureau of Canada (IBC) has asked Ontario’s insurance regulator, the Financial Services Commission of Ontario (FSCO), to consider imposing a Cdn$1,500 cap on post-PAF assessments and treatments for minor injuries.

The suggestion is one of 25 recommendations IBC made to FSCO as part of the commission’s five-year review of the province’s auto insurance legislation. A complete set of all recommendations by stakeholders can be viewed on FSCO’s Web site at: http://www.fsco.gov.on.ca/english/insurance/auto/5yrrview/default.asp

ALBERTA RATE BOARD ALLOWS 5% AUTO PREMIUM INCREASE

The Automobile Insurance Rate Board (AIRB) has announced it is allowing a 5% increase in premiums for mandatory auto insurance in Alberta as a result of its annual insurance rate review.

As a result of the rate change, Alberta drivers could pay on average an additional Cdn$30 per year for their mandatory insurance coverage.

AIRB said its traditional public review of rates “became more complex this year after the court struck down the Minor Injury Regulation that placed a cap of [Cdn]$4,000 on non-pecuniary damages for some soft tissue injuries. This resulted in a change in the insurance product and increased costs to insurers.”