The Citizen, 1990-06-27, Page 6PAGE 6. THE CITIZEN, WEDNESDAY, JUNE 27, 1990.
The OMPP.
Good news for good drivers.
Ontario has a new, comprehensive auto
insurance system, called the Ontario Motorist
Protection Plan.
The OMPP puts the brakes on increases in
your insurance rates. It speeds up payment of
improved benefits, and extends coverage to some
people not previously covered. Most claims
will be settled without lawsuits. However,
you still have the right to sue if you are
seriously injured.
The new plan is more than insurance reform.
It will lower costs by improving highway safety
and reducing accidents. Because, in the end,
safe driving is a good way to keep costs down
and prevent injuries.
THE GOOD NEWS.
In recent years, caps have kept insurance rates
in Ontario artificially low, while cost pressures
have continued to mount. Bodily injury claims,
for example, totalled about $1.8 billion in 1988.
Without the Ontario Motorist Protection Plan,
insurance companies would require premium
increases of 30-35 % this year. The OMPP will
hold premium increases this year to only 8 % on
average in urban areas, while average rates
in rural areas will not increase at all.
The OMPP works to keep automobile
insurance affordable.
HOW DOES THE ONTARIO MOTORIST
PROTECTION PUN WORK?
Your insurance policy will automatically be
converted to the new system by your insurance
company.
Under the OMPP, virtually all your dealings
will be with your own insurance company.
Guaranteed income benefits will be paid to people
injured in an accident, regardless of fault. These
are payments to cover income, medical bills,
death benefits and child care. For the first time,
students, retirees and homemakers are covered.
Compensation will be paid by your insurance
company quickly after your claim is filed.
Should your vehicle be damaged, your
insurance company will pay to repair it if you
are not at fault. You can continue to buy optional
collision coverage to cover your vehicle if you
are at fault.
To make the system fairer, your insurance
premiums will be based on the cost of repairing
your own car - not the cost of the “average” car
on the road. Someone with a car that is expensive
to repair can expect higher insurance rates.
THE BAD NEWS FOR BAD DRIVERS.
Paying benefits regardless of fault does not mean
bad drivers go unpunished.
Fault continues to be used for rating purposes.
Those with good records are rewarded with
preferred rates. Those who cause accidents are
charged higher premiums.
Motorists causing accidents resulting in death
or serious permanent injury are still liable to be
sued for unlimited damages.
As part of the OMPP, over 100 additional
Ontario Provincial Police will patrol our highways.
Traffic fines have been more than doubled.
NOW WHAT?
The Ontario Motorist Protection Plan balances the
need for affordable rates with the requirement
for comprehensive protection. Compensation is
there without the need to go to court. The
premium dollar goes to help those who need it
most - the injured victims.
Your insurance broker or agent has all the
details about the Ontario Motorist Protection Plan.
And you will receive an information brochure with
your premium notice.
Government
of Ontario
The Ontario Motorist
Protection Plan.
Everyone’s Protected.