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WRITY PRR PR~ 'In .&. EYIV - - - 5LJwI UAj, ÂVAIMUU 528. 1990, PAGE AM New car insurance plan Chainges affect, price, com p-ensation This in thi e camd arficle in a serie exporîng car inscuranoein OntÏdro. The new car insurance plan proposed for Ontario doesn't change anything about the wa i which you buy your coverage. CB~ it does change the level of compensation you receive after an accident and the way dlaims are settled. Today, people hurt in car accidents receive, limited compensation for aspects such as ot income, supplementary medical care and rehabilitation on a no-fault bass. To obtain a.dditional compensation you have to prove that the other driver was at fault - wbich can often mean engaging the services of a lawyer, entering into a drawn-out settiement process and even having your case go to trial. It can be much like a lottery. Some win big and become relatively wealthy after an extended court battie; others - .with exactly the same izjury - get virtually nothing. "One ai the greatest benefits ai the new plan wil be fairness" Under the propoeed systemii, a]1 accident victims, no matter who caused the accident, wiIl receive guaranteed compensation for bot mncome, supplementary medical costs, rehabilitation and long-term care. lI return, ail but the most seriously injured victims wil1 give up the right to sue for additional compensation. "One of the greatest benefits of the new plan will be fairness," says Insurance Bureau 0f Canada a president Jack Lyndon. It wil eliminate many of the inequities that eist today and ensure people get compensated when they need it most - right after the accident." d Lyndon points te examples that ddemonstrate how innocent acci- dent victims can be penalized n under the present system. Is Take as an example the case of 'San engineer i Northern Ontario. He was ivn carefily on bis ownsid oftheroa, ho e.was struck hy an appoahing lic cruiser that sucddeny ver ite bis lane. The engineer was' forced te miss several weeks of work. Although he was cbearl innocent li the accident, after t eears the court disxissed bis case, ruling that the other driver had exeined a sudden . heart poemand could not be held responsible. mhe engineer's damages bas been assessedat $211,288, but af ho reoeived was the current income replacement maimum of $140 per week. Under the new plan, the engineer would have received up te, $450 aweek witbn10 days of fiing a dlaim, for the period he was off work. I addition, he would have had -access te $500,000 for supplementary medical care and rehabilitation and a further $500,000 for long-term care. RRDUCES HARDSB!IP "Most accidents are cusdby momentaiy inattention, not by negligence or dliberate inîtent," Lyndoni says. 'Mie new system recogmzes that even the driver who, is at fault requires adequate compensation, except convicted drunk drivers who dont; get compensation for bast income.« Lyndon commenta that; often the eisting "at fault" system. imposes real hardsbip on the victime. '"How about the Young mother who is distracted by her infant's ciy. and causes an accident? Or the normally careful driver who, gets seriously hurt as a resuit of a moment's inattention? "lI both cases, the victimn caused the accident and se would get notbing in the courts. Their familles would be seriousby affected because the present levels of »compensation are woefufll ow." Under the new plan, a accident victime would boeéligible for income replacement of up te, 80 per cent of their gros income, te, a maxtimumi of $450 per week. As this is tax-free, it is equivalent te, take-home pay 0f a groffs annual seiary of $29,250. If you earned more than *29,250- and had long-termi disabilhty coverage, your car inuac could bo used (up te a maximum of $450 a week) te, bring your income replacement payments up te 80 per cent of yor" salaiy. Indii 'alswithout disaility plans woubd be able te. buy optional, additional coverage if they wished. People without an income, such as st;udents, retirees, home- makers, and the unemployed will receive $185 a week. Home- makers wii l aso be eligible te receive a further $50 per child per week te cover the costs of chbld care. Costa of supplementary nedical care and rehabilitation vil ho covered, up te a total of $5000, compared te the »!esent level of $251A00. A further $500,000 wiil be available for long-term. cars - an important isetfor which no compensation lprovded at present. Death benefits wîll rise te $25,000 for the death of a spouse and $10,,000 for the death of a iependent, and funeral benefits c>, *3,000. I the event of death or a erious permanent izrjury, you Or jour dependents would receive hie guaranteed benefits nentioned and would, aise have he option of suing for additional mnipensation if you can prove the vfher driver was at fault. "Insurance will be more affordable," Lyndon says, "By restricting thee of the courts in settling daims, the proposed system. will hebp keep insurance premiums more affordable for the residents Of Ontario.#@ The Ontario government bas stted that in the firtyear there would be no increase,, on average, li premiums for motorists in rural areaswbile li the greater Metro Toronte area premiums would rise byno more than eight per cent on average. Your premium could of course 'lise above that te refiect a change li your risk, such as a change of vehicle. determined by who was at fault. If you don't have collision coverage, your insurance company would pay for the repaire te the extent you were not at fault in the accident. For example, if the accident were wholly the fault of the other driver, your insurer would pay your full repair coats. If you were 25 per cent at fault, they would pay 75 per cent of the costs, and se on. If you were responsible for the accident but had collision coverage, your insurance company woubd pay either the fuil cost of repairs, less the amount of your deductible, or the actual value of your car, whichever was bess. A maqjor difference from today's system is that you would receive payment from your own insurance company. No longer would you have te go through the process of claiming from the other driver's insurance company. And because insurance companies would b. paying for rep airs te the cars of their own coiyholders, the vulnerability of individual vehicles and cost of repaire will be more important. At present your premium is based on an average coat 0f ail cars hecause your insurance company cannot predict wbat kind of car you may hit. Inurance companies wiIl in future use a new rating system, based on data gathered over a number of years, wbich classifies vehicles according te their accident record, degree of injuiyj te occupants coat of repairs, driver profile, etc. AFTER AN ACCIDENT An important aspect of Ontario's propoeed insurance plan is the quick payment of presenting *99,fFINÀNCING 90 iacn s avalable on a 1224 month lerm.financing also, avadlable af109% for 25-36 monfhs anda1 0, for 37-48 mnooffs on $10A63 76 Offer s limefrimifed Sonne conditions appiy See dealer for complefedeMails pamns5409Teo! fbro gs j SEE PAGE A10 DAMAGE ZY) YOUR CAR Although the new plan will pay compensation te ail people ixrured in an accident regardless -of who was-te blame, payment for damages te your car wiil still ho * i A WEM Y M E PMSS- Tho À&iitn no -vertým ima