Photo credit: Robert Jack/Flickr
On November 20, 2014, Bill 15 was passed in the Province of Ontario’s legislature. Titled “Fighting Fraud and Reducing Automobile Insurance Rates,” the Liberal government touted it as “a big win for consumers,” including motor vehicle accident victims.
“This act will deliver real results for Ontario drivers involved in traffic collisions or in need of roadside assistance,” said David Orazietti, Minister of Government and Consumer Services, in a provincial release. “We want consumers to be protected, and we want to make our roads safer.”
Despite the province’s protestations, several vocal critics have stepped forward to say the bill may actually discriminate against motor vehicle accident victims. The key point of criticism is the fact that no-fault accident benefits disputes between injury victims and their insurers can no longer by decided by the Superior Court or an arbitrator at the Financial Services Commission of Ontario (FSCO). Rather, beginning in April 2016, disputes will be heard by the Licence Appeals Tribunal (LAT), which handles disputes around compensation claims and licensing activities by a number of governmental ministries, including the Ministry of Transportation, Ministry of Education, Minister of Municipal Affairs and Housing, and the Ministry of the Attorney General.
The decision-making shift presents several problems. To begin with, the LAT operates under strict guidelines and fast track timelines which may not allow for appropriate consideration of life-altering insurance claims.
But even more crucial is the LAT’s general lack of experience in handling motor vehicle accident benefits disputes. In the past year, Toronto Sun columnist Alan Shanoff has penned two illuminating articles regarding the LAT’s impending authority. In a piece published January 24, Shanoff points out that LAT members “have expertise in liquor licence appeals, reviews of medical suspension of drivers’ licences, motor vehicle impoundments and claims under the Ontario New Home Warranties Plan,” but none in dealing with auto insurance claims.
The tribunal’s decision-making record regarding homeowner appeals is also cause for concern. According to Canadians for Properly Built Homes, the LAT sided with insurers in 96 per cent of cases between 2006 and 2013. A similar failure rate for motor vehicle accident victims could be devastating.
When the LAT begins accepting applications in 2016, they will do so under the province’s new Auto Insurance Dispute Resolution System (AIRDS). Leading up to April, an advisory panel representing groups that have an interest in the areas of law, business, government, consumer groups and the insurance industry is meeting to provide guidance on the design and implementation of the system. Earlier this year FAIR, a non-profit association supporting motor vehicle accident victims through advocacy and education, published a letter to Ontario Attorney General Madeleine Meilleur which brought to light a lack of representation for accident victims on the advisory panel. The LAT’s advisory committee, FAIR claims, “is composed of insurer defence lawyers and legal experts and consultants without any presence of consumers or MVA [motor vehicle accident] victims or those who represent them.”
While the end results of the transfer of jurisdiction from the FSCO to the LAT will not be known until after the April 2016 activation date, Ontario’s Bill 15 threatens to leave motor vehicle accident victims worse off than they are today. As Mr. Shanoff wrote in his January column: “Shouldn’t we first be fixing LAT … before we throw 10,000 auto insurance disputes at it?”
If you or a member of your family has been injured in a motor vehicle accident, you may be entitled to compensation. Contact Neinstein Personal Injury Lawyers today to set up a free, no-obligation consultation.
Greg Neinstein
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