Some people injured in hit and runs have benefits slashed under new Ontario insurance regime

Under Ontario's new auto insurance policies, victims of hit-and-run accidents are likely to see less automatic benefits then before.

An Ontario provincial government fund that pays insurance claims to people including those who were injured and killed hit and runs has scaled back the compensation it pays out to be in line with recent changes to automobile insurance in Ontario.

That will mean thousands of dollars that won’t be available to people who can’t identify the car that hit them and can’t sue the driver directly for benefits, if they don’t have their own automobile coverage, lawyers and activists say.

It’s one of several aspects of the new insurance regulations that are becoming more clear, including that passengers in a bus or pedestrians and cyclists hit by a bus stand to receive fewer benefits if they don’t have their own automobile insurance policies, which are hard to find if they don’t have a car of their own.

“The Motor Vehicle Accident Compensation Fund was set up to support Ontarians who find themselves in a really tough spot. They’ve been hit by a driver who fled the scene, the ultimate act of cowardice,” said personal injury lawyer David Shellnutt.

“In the past they would get support for income, for their schooling, now, without any say, that’s been torn away. Those supports no longer exist for people injured in hit and runs,” Shellnutt said.

The lost benefits include income replacement, which tops out at $400 a week, up to $6000 for a funeral benefit, and death benefits, which are about $25,000 for a spouse and $10,000 to a dependent.

The fund, which paid out about $10 million in claims in 2022, the last year that financial statements are available, will still pay mandatory benefits including medical, rehabilitation, and attendant care benefits, according to correspondence from one of the fund’s examiners.

When asked about the change at an unrelated news conference on Thursday, Ontario Premier Doug Ford said, “Honestly, that’s the first time I’ve heard of this one,” and referred the question to his staff.

A government spokesperson said on Friday the fund’s changes align with benefits under the Insurance Act.

“Our government is providing drivers with greater choice and convenience when purchasing automobile insurance so they can choose the right policy that fits their needs,” said ministry of finance spokesperson Sarah Chapin.

“Mandatory medical, rehabilitation and attendant care benefits continue to be available to eligible individuals injured in automobile accidents meaning pedestrians and cyclists will continue to have access to medical, rehabilitation, and attendant care benefits and will continue to receive the medical care they need,” Chapin said.

The choice is available for drivers, but the pedestrians and cyclists that are injured do not appear to be able to choose the benefits available to them, said NDP critic Tom Rakocevic.

“These are cuts designed as choice. But for those unfortunate pedestrians, they have no choice in the matter,” Rakocevic said.

Several public transit fleets approached by CTV News said their policies would no longer include optional benefits to those injured in a bus crash, including their passengers.

Toronto’s TTC said its vehicles are insured through the TTC Insurance Company Limited, and that as of July 1st, its policies do not include optional coverage.

In Brampton, a city spokesperson said, “As a result of the Province’s regulatory changes, these optional benefits no longer apply to passengers, pedestrians or cyclists involved in a collision with a City vehicle…

“As set out in the new regulation, no passengers of any automobile (including bus riders), can access optional benefits under the City’s auto insurance policies,” the spokesperson said.

The insurance changes do not affect someone’s ability to sue a driver for negligence, lawyers said.

Jess Spieker, of Friends and Families for Safe Streets, said when she was hit by a car in 2015 those benefits helped her pay rent and not be evicted as she spent months recovering from a broken spine.

“I was lucky to have access to income replacement benefit and that was barely enough to keep me housed,” she said.

“There’s a whole bunch of stuff that you might not have access to you that you would before and that might be devastating to a victim,” she said.

CTV News inquired among several insurers to see if there is a policy that could be offered directly to pedestrians to fill the gaps without having a vehicle to insure, but there doesn’t appear to be such a policy.

The Insurance Bureau of Canada said in an email that a pedestrian or cyclist can access optional benefits if they purchase them through an auto policy where they are the policyholder, that policyholder’s spouse or dependents, or another person specified in the policy, said spokesperson Rebecca Walker.

One insurer, Aviva, told CTV News they would continue offering optional coverage to passengers, pedestrians and cyclists for a short time.

“Aviva has chosen to continue providing accident benefits coverage for passengers, pedestrians, and cyclists under existing policies until those policies come up for renewal. This gives customers additional time to review their options and make informed decisions about their coverage,” a spokesperson said.