The Huron Expositor, 1974-05-09, Page 70
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(with my out-of-pocketloss paid by my insurance
;
unmarried person usually drives a lower -value car -and has
company regardless of who's at fault and giving up
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all right to sue)
because of generally higher income, must receive more and
My major concerns about automobile insurance are:
"The Consumers Association of Canada, a nonprofit
higher benefits. No-fault insurance rates for each rating
❑ poor service from O my agent
group are based on the amount of benefits expected to be
❑ delays in settling claims
, Y 9
y is
paid to each group.
❑ other an In ettin m mono because I've never
,
;
publishes CANADIAN CONSUMER, which features
t
❑ another company
;
product studies and buying guides.
85 South St.,
❑ another company's adjuster
tAllen Linden has studied automobile accident com-
❑ other
A
G ®d a ri a h, N 7 A 3 Z 2
❑ 1 would like to have more information about no -
he completed a study which preceded significant
reforms in Ontario's system of auto Insurance.
5j9-524-21,3
fault car insurance.
m:_____.__�___________________________________ •r_ _ ..
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Eirinsurance ?
There's a lot of confusioh about'no-fault car insurance. Even the Osgoode Hall -Law School, York University, agrees, In response to
term ."no-fault" means different thinto different 'people. g
The. Consumers Association of Canada* feels many people dont le. this growing concern about no-fault, CIAG INSURANCE* is offerin �s here a single best
- � - things p p you some information and a chance to voice your opinion. answer?
really understand' what's involved. Professor Allen Linden* , Please consider the following questions, then complete and
return the coupon to Indicate your views. CIAG will report the
response to the Ontario Ministry of Consumer and Commer
cial Relations.
• Are you in favor of scrapping entirely the fault approach to
g with our Some people believe the government can solve all our vehicle damage claims?,In other words, you and another
What does "fault" mean What's wron
automobile insurance problems with a no-fault monopoly. driver would collect for vehicle' repairs from your own in-
surers regardless of who caused the accident. This could
n auto insurance? present system? . Times are changing rapidly - and so are social conditions. avoid the delays that concern most claimants. `�
To keep pace, institi�trons are examined and modified more,
The "fault" principle goes back beyond Biblical times. The • The'fault.principle served well in the early years of the often. Premiums would reflect the benefits paid rather than who
idea of an eye fbr an eye, a tooth for a tooth, was adapted by automobile. Now, with masses of vehicles, 'compldx roads was at fault. If you're not satisfied with the service friim your
English common law to mean'the guilty must pay. In auto in- and higher speeds, even a split second counts and it's • The Insurance Bureau of Canada has proposed a no-fault company you can change to another.
surance it means if someone damages your car or injures sometimes difficult to decide who's to blame, and to what plan to pay for vehicle damage and a substantial portion of : Would you favor rem ving the right to sue for pain and
you 'by negligent driving he must pay for your loss. Most degree. wage loss and out-of-pocket expenses for personal injury. suffering in the case of ome or all injuries? Each injured
motorists carry third party liability insurance to pay for The'plan would maintain the right to sue for additional ex- person would be paid o -of-pocket expenses, and trained
losses they cause. You might think it's easy: bad drivers cause accidents. Yes, penes and for pain and suffering only in cases of severe in- for other employment if d sability prevented his resuming a
they do. But good drivers cause accidents too. And bad .Jury. The proposed coverage would pay medical and rev!ou occupation.
Over the years insurance programs have developed which weather and poorly designed roads and unsafe cars cause rehabilitation expenses up to'$20,000 per person, lost earn- P.-. P
ignore fault. Workmen's Compensation, for example, pays accidents. When we try to find the cause of an accident, we ings up to $250 a week for up to three years, and a death
for loss regardless of who's at fault. In traffic accidents, can't look only at the driver. benefit of $1,000 for dependents' under 18.
however, many people still feel the guilty should compensate.CIAG INSURANCE
the innocent. • i4 Who is paid?.. Only, the, ",innocent" xah`'recover. the .full.
• The Ontario Law Reform Commission has recommended
The fault system theory is that careless drivers must pay for amount of their losses.. Where- responsibility is divided, compulsory, no-fault automobile insurance and the abolition
the accidents' the cause and its- purpose is, to encourage others may recover part of their loss. Where a driver is judg- of court action to determine blame'for traffic accidents. The
drivers to be carefug
l. Insurance premiums are calculated to ed responsible for the accident', he and often his passengers Commission recommends that all traffic victims be compen-
cover the cost of claims for which drivers in different rating recover nothing from the other party. But they may suffer sated for medical expenses, lost wages and -property CIAG, Ontario's leading automobile insurer, insures more
groups are responsible. According to a recent study the loss of wages, vehicle damage, serious injury requiring damage, but not for pain and suffering. than 320,000 Ontario vehicles. it is owned and controlled by
average liability clai S c.Rst for married males over 24 was rehabilitation or a change in lifestyle - all from a momentary democratic co-operative organizations '- the Ontario Credit
less than halffthat inarrled males under 20. The liability lapse'of judgment. Their recovery is limited to • accident Union League, the Ontario •Federation of Agriculture and
coverage premiums for each group reflect this difference. benefits provided by their own. policy. United Co-operatives of Ontario. Among Cl s,p 'rr ob-
• A committee appointed by the Ontario Minister of Con- i `� no-fault the answer? jectives are: k
sumer and Commercial Relations. in 1970 to inquire into —to provide poi ins once service and
How about no-fault? claims adjusting 'practices -concluded: • The question of service: Will a change in the law improve value
' "The public simply does not understand the nature of in- Insurer attitudes towards claimants? Taking the emphasis —to act honorably and to be fair to all claimants, whether
No-fault automobile insurance describes the insurance plan surance. coverage (and auto insurance particularly) nor .do off the adversary fault system and having drivers deal entire- policyholders or not
the understand the manner' in which claims- are ly with their own insurers could help.
"that exists when fault law does not apply to auto accidents. y —to be a good corporate citizen, and to try to be known for,
Motorists no longer rely .on getting payment from another settled, ... Most of the complaints which we received had enterprise, promptness, honesty and fairness
motorist for vehicle damage or injury but must provide their to do with automobile damage claims and we think that . The question of rights: The fault system permits compen-
own protection. Each company pays its own policyholder much of the problem and public resentment which may exist sation of the innocent victim not only for actual out -of -
regardless of blame. against insurers results from the adversary system of resolv- pocket expenses, but also for pain and suffering. It denies In 1973, CIAG used its earned premium dollar this way:
!ng such disputes." compensation to the person at fault in the accident. No-fault
Pure no-fault automobile insurance does not exist in North Ninety percent of accidents involve vehicle damage seeks -to rehabilitate all victims regardless of fault and the CLAIMS -'72c
Americp. The so-called no-fault plans in some states andonly and account for 70 percent of rota/ claim extra funds are provided by eliminating the right to sue in (22c fbr injuries) OPERATING COSTS - 22c
provinces are only partial no-fault programs. payments. whole or in part.
By' the way - don't confuse no-fault insurance with govern- T'ilNf�• PREMIUM TAX - 2c
ment insurance. Although limited no-fault coverage is art of Consumerism, the law, and competition among insurance While some rights may be lost, no-fault would bring new INCOME TAX - W
g g p g RETAINED EARNINGS - 2c yt.
government automobile insurance plans'in western Canada, companies have-not created satisfactory claims' service rights more Important than money compensation, Ijke the �,�,A;;; �`
right to rehabilitation and help !n adjusting to the new situs -
no -fault benefits have been offered by automobile insurance because- of a crucial gap in .the system. When you are in- a Aid
companies in Ontario for some,years. CIAG was first to do so volved in an accident you deal with the other person's com- tion created by an accident. Rather than focusing on the
through additional coverage introduced in 1959. pany - not the one you chose yourself. allocation of guilt and innocence, no-fault emphasizes solv-
ing the victim's problems.
n areas it can cost twice as much to park a carMany people feel automobile insurance costs too much. The question of responsibility: Advocates of the fault It isn't possible even in this full-page
r But how does it- relate to other costs? In major metro olitan `�
What o we " have now? l($2-$3 per day) system suggest that when careless drivers must pay for the report to provide a1I the information
as to insure it; 15 hours auto repair time at current rates of accidents they cause, they are more careful. No-fault sup- you may want. You can get more
Motorists insured ,in Ontario have no-fault benefits broader porters argue that a careless driver does not pay, but his in- from CIAG's local office or by mail -
than those offered in most other'provinces and states and $10-$15 costs as much as the average annual insurance surance,company does. They say because 95% of motorists ing this coupon.
also have the right to sue a guilty party for loss. premium. People may be more concerned about paying , are insured, merely making them theoretically responsible
char a change theaat� udesof aoperson who has caused an - - - - - - - -
automobile premiums because they feel they have nothing tooesuceoes .----
um
No-fault death and disability coverage is part of all liability show for it until they, have an accident. g � To: CIAG INSURANCE
insurance policies •issued in Ontario. it provides: accident. No-fault Information
Total disability benefits for: Priory Square Guelph
Why are people talking •The question of cost: The cost of automobile insurance � � P
—an employed person ('or unemployed person age 21 to 65 reflects the amount` paid out for claims. No-fault will not N1H 6P8
who has worked six of the previous 12 months) - 80 per -1 reduce the number of accidents or the amount of damage - ,
cent of wages up to $70 weekly, for up to 104 weeks, or about no-fault? it . it's only. a change in law. From: name
for life if disability is permanent
a principal unpaid housekeeper - $35 a•week, for up to 12 The Ontario government has nnounced its intention to ex- Only entirely "innocent" traffic victims receive full payment address
ow
weeks tend the no-fault benefits n�in existence. 7 for their Injuries under the fault system. User no-fault, more ;
Death benefits for: People hope that no-fault will reduce or control the rising people will be compensated. If the guilty are also paid, the I would prefer (for little change in premium):
cost of automobile insurance, cost of insurance.will rise. The Insurance Bureau of Canada ❑ to keep the present insurance system in Ontario ;
—head of household - $5,000 (plus $1,000 for each living Publicity In the United, States about no-fault tans as the and the Ontario Law Reform Commission recommend reduc-
dependent after the first) �' P Ing or eliminating payment for pain and suffering and other ❑ to have a broader no-fault plan (to be paid for vehi-
solution to insurance problems has spilled over into Canada "general - damages" to provide funds for out-of-pocket losses cle damage and expenses of most injuries by my
—a spouse - $2,500 and caused confusion. American problems are not quitettheof all injured motorists. own insurer while keeping the right to sue for
an dependent child - $1,000 same as ours. The U.S. legal system is different. Ontario severe injuries) -
y automobile insurance costs are substantially lower. Under no-fault proposals, the young, single driver will pay
Medical and rehabilitation benefits: relativefy less in premiums and the middle-aged husband ❑ to have as complete a no-fault plan as possible
—up to $5;000 a person (four-year time limit) and up to
$500 funeral expenses ,
If an injured person receives accident benefits from his in-
surance company and recovers from the responsible party,
recovery is reduced by the benefits received. But future
weekly payments are not affected.
end father may pay slightly more. The reasons: the younger,
(with my out-of-pocketloss paid by my insurance
;
unmarried person usually drives a lower -value car -and has
company regardless of who's at fault and giving up
;
lower income. The older driver heals more slowly and _
all right to sue)
because of generally higher income, must receive more and
My major concerns about automobile insurance are:
"The Consumers Association of Canada, a nonprofit
higher benefits. No-fault insurance rates for each rating
❑ poor service from O my agent
group are based on the amount of benefits expected to be
❑ delays in settling claims
, Y 9
��a
paid to each group.
❑ other an In ettin m mono because I've never
,
;
{r
■
t
P P g 9 y Y
had a claim
❑ having to pay a deductible when I have a claim
"The Consumers Association of Canada, a nonprofit
❑ poor service from O my agent
organization of consumers which brings their views
to the attention .of government and producers,iNSU,
��a
;
❑ my company
❑ my adjuster
,
;
publishes CANADIAN CONSUMER, which features
t
❑ another company
;
product studies and buying guides.
85 South St.,
❑ another company's adjuster
tAllen Linden has studied automobile accident com-
❑ other
penset/on systems for a decade In the early Sixties
G ®d a ri a h, N 7 A 3 Z 2
❑ 1 would like to have more information about no -
he completed a study which preceded significant
reforms in Ontario's system of auto Insurance.
5j9-524-21,3
fault car insurance.
m:_____.__�___________________________________ •r_ _ ..
;
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■
t
w
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■