IBC accuses critics of proposed CAT definition of “fear-mongering”

Insurance Bureau of Canada (IBC) laid down the gauntlet against critics of the province’s recommended catastrophic (CAT) impairment definition, accusing them on June 12 of “fear-mongering.”

IBC responded quickly to a media campaign mounted by trial lawyers and medical and rehabilitation service providers. The campaign features full-page ads in daily newspapers opposing a proposal to change the definition of a “catastrophic impairment” suffered by victims injured in auto accidents.

In a report to Ontario’s finance minister, the superintendent of the Financial Services Commission of Ontario (FSCO) makes a number of recommendations to change the catastrophic impairment definition. Among them, the superintendent recommends against combining physical impairments with psychiatric or mental/behavioural impairments for the purpose of determining a catastrophic impairment of the whole person.

“We estimate that the number of cases deemed catastrophic will be reduced by half if these changes are implemented,” says Ontario Trial Lawyers Association (OTLA) president Andrew Murray.

The OTLA’s concerns are endorsed by the Alliance of Community Medical Rehabilitation Providers and the Ontario Safety League. The ads encourage people to contact their local MPPs.

“This is false, misleading, singularly irresponsible and is nothing more than self-serving fear-mongering,” IBC’s vice president for Ontario, Ralph Palumbo, responded in a press release.

“It is part of a campaign by people who make money from auto collisions and want to maintain the status quo. They’re worried that more money will go to treatment instead of their legal fees. Ontarians should listen to the advice of the medical experts and not lawyers.”

IBC’s press release notes the superintendent’s recommendations followed on the advice of an expert medical panel established by FSCO. In addition, the government has promised a public consultation in the 2012 budget.

“The panel of experts was of the view that the current system leads to inconsistent catastrophic impairment determinations and frequently gets the diagnosis wrong,” IBC notes. “The proposed changes would make the process more accurate, consistent and objective and would incorporate leading edge science-based evidence into CAT determinations.”

Auto insurance benefits remain $1 million for catastrophic injuries, including the option to purchase more coverage.

The superintendent’s recommendations would create a new “interim” catastrophic injury category to get people the care they need even before a determination is made. Also, it puts children under 18 into the catastrophic category immediately.