ILSTV spoke with Brenda Hollingsworth, a personal injury lawyer with Ottawa’s Auger Hollingsworth.

Tyson Mielke: Brenda, what effect will this reduction in medical and rehab expenses have on accident victims in Ontario?

Brenda Hollingsworth: I think it will have a very significant impact on people who are seriously but not automatically deemed catastrophically injured. So those are people who have serious orthopedic injuries but who for example aren’t automatically quadriplegic or paraplegic. To those people there’s a very real risk that they will run out of their medical rehabilitation benefits before they can apply for catastrophic benefits at two years. So that’s concern number one. Concern number two is I have many clients with injuries who by the time that if your injury has psychological component, say you’re getting psych treatment and physio treatment and occupational therapy treatment. Home modifications for example, if you have to raise or lower counters or make changes in your washroom to accommodate your disability or get a stair lift, all of these things come out of this pot. $50,000 over ten years just won’t go that far.

Tyson Mielke: In addition to the reduction in available benefits, the new regulations also affect assessments. Is this right?

Brenda Hollingsworth: One of the changes that they’ve made in addition to reducing the amount is that they’re going to include the cost of insurer assessments in the victim’s pot. So right now if the insurer chooses to do an assessment of the injured person, that comes out of the insurer’s pocket not the policy limits for the injured person. But the proposals that we received suggest that the money will come out of the insured person’s pot. That can really add up – I have a client right now who has spent $20,000 in med rehab benefits and $17,000 in assessments. So if she were under the new regime, she’d almost be out of benefits and she’s got a long road ahead in her rehabilitation. 

Tyson Mielke: The government did say that people will have the opportunity to purchase $100,000 or even $1 million in medical and rehabilitation benefits if they choose. Do you think this will help?

Brenda Hollingsworth: Well historically people have not purchased extra accident benefits. There are top-up accident benefits that are currently available and I understand a very that a low percentage of the population buy them. So if insurers price them fairly and reasonably and if brokers are educated and are able to communicate to people the need to buy these benefits, maybe some people will buy them. But the fact is that the people who need these benefits, people who don’t have extended health care, have low paying jobs and don’t have large savings, they’re the people who need high medical rehab benefits in the event of an accident. They’re the people in the worst position to buy optional benefits – they’re the people who will always opt for the least expensive insurance option. 

Thanks very much for your thoughts on these new regulations, Brenda.