HomeMy WebLinkAboutThe Huron Expositor, 1989-05-03, Page 7No faint system urged to cut insurance
ED rile`` OTE: This is the fourth in a
,t ; •l mr les on Ontario's ear insurance
system
A. >ntr , motorists ponder the recent
confusion u- undfng tat a insurance
system . the - iced... —ent is
pushing rhea.. with studies of no-fault
cove 'e — a fundamental reform it hopes
• . a L in the rapidly rising costs of ac-
cident claims.
T. surprise move, the t earn ent said
pia i major cbang.' it ear insurance
ran ysterr y. r.;ec r .,tke effect by
June 1 h"' x e.. put ur. hold. The an -
noun • incelled the planned elimina-
tion of agc, sex and marital status as rating
criteria. The changes had been expected to
result in lower insurance prices for many
your male drivers but higher rates for
most others.
At the same time the government ruled
that car insurance companies cannot in-
: ease drivers' premiums by more than 7.6
per cent.
Financial Institutions Minister Murray
Elston said changes in the rating system
will be held up pending a decision on no-
fault.
The Ontario Automobile Insurance Board
(OAIB) ope.,1 . , ,folie hearings April 17 on
t a , . orm < of n& -fault insurance. The Board,
a government agency, regulates the ear in-
surance system run by the private in-
surance industry.
Under the present system, people hurt in
car accidents can receive accident benefits
to a maximum of only $140 a week. To
receive additional compensation they must
sue and prove another driver was at fault.
More and more Ontario accident victims
have been launching lawsuits to settle
claims, and average court awards have
been rising. The cost of bodily injury set-
tlements has nearly tripled over the last
eight years to about $1 billion annually.
Insurance industry officials say two
things are needed to bring these
skyrocketing costs under control. One is in-
troduction of some form of no-fault in-
surance to compensate those injured in car
accidents. The other is reform of the civil
justice system as it relates to car insurance
settlements.
Under no-fault insurance, r ..r accident
victims receivt benefits almost
automaticalli — at higher levels than the
present sytt m provides — regardless of
whether the) caused the accident. In ex-
change for higher and quicker compensa-
tion, their right to sue for additional com-
pensation is restricted or eliminated.
The OAIB is exploring the costs and ad-
vantages of three systems — two forms of
so-called "threshold no-fault", plus a
"choice" system that would give motorists
the option of purchasing either no-fault
coverage or the traditional fault -based in-
surance now in effect.
Under threshold no-fault, injured persons
are paid set amounts by their own insurance
to cover economic losses, including lost
wages. Funds are also available to pay
medical, rehabilitation and funeral costs.
Victims can sue to recover additional
economic costs not covered by their no-fault
benefits. But they can't sue for non-
economic damages such as pain and suffer-
ing unless the seriousness of their injuries
meets a certain level or "threshold".
The OAIB study is considering two
threshold definitions including one used in
the New York State. Generally, threshold
no-fault restricts pain and suffering
lawsuits to cases involving severe injuries
causing death, dismemberment, significant
loss of body function or disfigurement.
Under the "choice" system being studied,
motorists would be required to choose bet-
ween no-fault and fault -based personal in -
Fight over principal transfer still on
The fight to keep three Huron County
Secondary School principals from being
transferred is not yet over.
The local branch of the Ontario Secondary
School Teachers' Federation has filed a
grievance with the Huron County Board of
Education in regard to the transfers.
The Huron board would not confirm that a
grievance has been reveived by the board,
but John Gnay, the OSSTF district represen-
tative, has stated that the grievance was
filed.
Neither the Board nor the OSSTF is mak-
ing any comment about the situation, but
HCBE Superintendent of Personnel, Gino
Giannandrea did comment on what the pro-
cedure for dealing with a grievance is.
Mr. Giannandrea, while not commenting
on whether or not the board has received a
greivance, said if . a greivance is received
the board has five days to respond. The
OSSTF can either accept the explanation
(for the transfers) and drop the grievance,
or ask for arbitration.
If the grievance goes to arbitration a
representative for each of the teachers and
the Board would be selected, and a third
party agreed upon by both parties would
round out the board of arbitration. The
board of arbitration would hear arguments
from both sides, call witnesses, etc. much
like a court case.
The entire procedure, Mr. Giannandrea
says, could take as long as two years, and in
the meantime it's business as usual, and the
board's decisions are carried out.
Board trustees decided last February that
Joe Wooden, of Central Huron Secondary
School in Clinton, will go to Exeter's South
Huron Secondary School, and be replaced
by Jim Moore. Exeter's principal and that
town's mayor, Bruce Shaw, is to be transfer-
red to Goderich District Collegiate Institute
to fill the position of Herb Murphy. Mr. Mur-
phy is to replace the retiring Ken Wood at
F.E. Madill in Wingham.
The move by the teacher's union comes
after students and the public failed to sway
trustees into changing their decision in mov-
ing the principals.
Scott produces best medium eggs
The best eggs in Ontario were all under during the official trophy presentation on
one roof at the Poultry Industry Conference the first day of the Exhibition.
and Exhibition, held April 12-13 in London. Judging of the 89 entries from across On
The eggs were there to compete for top tario was done by officials from Agriculture
honors in eight categories in the Ontario Canada. According to Contest organizers,
Egg Producers' Marketing Board's 9th An- entries this year were among the highest m
nual Egg Quality Contest. quality ever received. The Egg Quality Con -
Scott Poultry Farms of Seaforth won the test is held each year to promote egg quality
Contest's Grade A Medium category and among Ontario egg producers and
were awarded the New Life Mills Trophy consumers.
Dinner
benefits Wawanosh Nature Centre
A fund-raising dinner to benefit the
Wawanosh Nature Centre for Conservation
Education was held on April 15th at the
Brussels, Morris and Grey Community Cen-
tre. The event, hosted by the Maitland Con-
servation Foundation, raised about $8,100.
"The Conservation Foundation was thrill-
ed by the number of enthusiastic supporters
who attended this, our first major fund-
raising event, or provided donations of
goods or financial support", noted Vince
Judge, Conservation Foundation Chairman.
Proceeds from the event will help to fund
improvements to facilities at the Wawanosh
Nature Centre that are nearing completion,
including additional classroom space, new
washrooms and better wheelchair access.
The Nature Centre, operated by the
Maitland Valley Conservation Authority, is
visited by a total of about 5,000 school
children annually from Huron, Perth, Bruce
and Wellington Counties. The Wawanosh
Nature Centre is located on concession six -
seven of East Wawanosh Township.
The fund-raising dinner, attended by over
200 people, featured a raffle, live and silent
auctions, and local entertainers. With the
success of this event the Conservation Foun-
dation hopes to be able to make this fund
raising dinner an annual event.
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jury coverage at the time they buy their
insurance.
Choice no-fault differs from threshold re -
fault. While accident victims would recei,
the same high levels of benefits to compen-
sate for economic losses, they would give up
all rights to sue.
Those choosing fault -based coverage
would retain the right to sue to recover both
economic and non -economic losses if
another motorist is found to be at fault. The
amounts of compensation beyond the stan-
dard $140 -a -week accident benefits would be
decided by the legal system. They would not
be compensated if they themselves were at
fault.
Under the choice system, motorists would
be able to switch from one type of coverage
to the other. But once an accident happens,
those involved are bound by the type of in-
surance covering them at the time.
Policyholders could increase their defined
no-fault benefits by paying higher
premiums.
The insurance industry says either form
of no-fault could be offered to consumers at
lower prices than fault -based insurance
because a no-fault system would streamline
the settlement process, cutting down on
legal costs.
"The present system clearly encourages
injured parties to resort to lawsuits and to
try to get as much compensation as they
can," says Jack Lyndon, president of the In-
surance Bureau of Canada. "The increasing
size of court settlements, the cost of hiring
lawyers and pursuing litigation, and the
sheer mass of red tape has a tremendous
impact on the cost of car insurance."
Mr.Lyndon welcomed the government's ex
amination off the no-fault alternative and the
Ontario government's recent announcement
of planeto reform some aspects of the civil
justice system as "steps in the right
direction."
THE HURON EXPOSITOR, MAY 3, 1989 — 7A
THE RISING COST OF FINDING FAULT
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