Changes to auto insurance may cause turmoil for p&c industry

The Financial Services Commission of Ontario (FSCO) publicized its proposed changes to the Statutory Accident Benefits Schedule (SABS) in June 2005, which included the elimination of the Designated Assessment Centres as well as the implementation of the “Unfair and Deceptive Practices Act.”
The Canadian Society of Medical Evaluators (CSME) an association that serves Canadian physicians who perform medical and medico-legal evaluations for patients or as a professional service to the legal market; insurance industry; workplace safety; and, insurance or workers compensation boards says these changes are “expected to cause great turmoil for the property and casualty insurance industry, rehabilitation professionals and victims of automobile accidents.”
The changes proposed by the Ontario government transfer medical and rehabilitation delivery decisions will take away from the neutral purpose of the Designated Assessment Centres that focus on medical issues, and replace them with issues reflecting an adversarial legal system. The CSME says the change is expected to bring dramatic delays in service delivery as well as render the services unaffordable for most Ontario drivers.
Thousands of Ontarians will, according to CSME, have their medical and rehabilitation treatment decided by the legal practitioners rather than on the basis of the best medical evidence.
It is also expected that automobile accident victims with small claims will have a hard time finding proper legal representation unless they also have a tort claim.
The October conference held by the CSME will bring together recognized medical and legal leaders to outline the future Ontario Automobile Insurance landscape. The negative impact of the new tort threshold on the no-fault policy will also be discussed.