Law Times

Law Times • sepTember 8, 2014 Page 13 www.lawtimesnews.com continue providing the option to go to court in every case in- volving an application for statu- tory accident benefits," he wrote. "I also do not accept the argu- ment that removing the court op- tion would hinder settlement of an entire file — that is, both the accident benefit claim and the tort claim. A quicker [dispute-resolu- tion system] will ensure accident benefit disputes are resolved well before the tort claim is settled." He also raised concern about undermining his proposed re- forms by continuing to allow the court option. "I am also con- cerned that some lawyers might find the shorter timelines and sanctions less appealing and, for that reason, choose to take cases to the courts instead of arbitra- tion, if the option existed. Dur- ing consultations, a number of lawyers suggested this was a real possibility. Including a court op- tion would undermine the pro- posed reforms. In addition, I am reluctant to add to the already heavy caseloads in the courts." The OTLA has also raised concerns about the plan to eliminate the prejudgment in- terest rate on damages for pain and suffering that compensates claimants for delays in receiving their benefits. The plan would eliminate that rate, currently at five per cent, and replace it with the general courts of justice rate that's now about 1.3 per cent, ac- cording to Rastin. In the OTLA's view, the change will reduce the incen- tive for insurance companies to settle since they can earn more on their investments of drivers' premiums while facing a lower penalty when cases take longer. "We think the changes are a dis- incentive to settle," says Rastin. "It doesn't accomplish what we think the legislative changes want to accomplish," he adds, citing the goal of speeding up the system. The latest bill follows years of efforts by the provincial govern- ment to stabilize and reduce auto insurance premiums by creating efficiencies and tackling fraud. The government says it has now addressed more than half of the recommendations from the auto insurance anti-fraud task force. Other measures include the regulation of health-service providers by FSCO starting Dec. 1, 2014. Introduced as part of the government's budget legisla- tion in 2013, the new regulatory system will apply to service pro- viders that bill insurers directly through the health claims for auto insurance system. As of Dec. 1, they'll need a licence in order to submit invoices and re- ceive direct payment from insur- ers for listed expenses, including assessments, examinations, and other goods and services. The regulations follow FS- CO's announcement in July of $200,000 in fines against a Toronto-area rehabilitation clinic for auto insurance of- fences. According to FSCO, the Ontario Court of Justice found the Ontario Rehab Centre guilty of two offences under the Insurance Act: knowingly mak- ing false representations to an insurer to obtain payments for services provided to claimants and charging for services not provided. Besides the fine, the court ordered the clinic to pay restitution of $609,112 for the false billings proven. While Rastin is critical of some aspects of the latest leg- islative proposals, he says the OTLA generally supports Cun- ningham's recommendations. "We generally applaud the work that he did when it comes to re- forming the system," he says. "We don't think that one penny should ever be paid on a fraudulent claim," he adds. But he has continuing doubts about the insurance industry's claims about its profitability and says many of the changes intro- duced over the years have re- sulted in benefit cuts rather than efficiencies. "We would really like them to reconsider those areas that we have a problem with," says Rastin, who notes the OTLA hopes to make represen- tations at upcoming hearings the government has indicated it will hold on the bill this fall. LT CANADA & USA 1.800.265.8381 | EMAIL info@mckellar.com | www.mckellar.com The reason why we are Canada's largest and most comprehensive structured settlement firm has everything to do with our passion for service and performance— without exaggeration, we make life easier for you. The largest Swiss Army knife has 85 tools that can perform 141 tasks. Almost as helpful as McKellar. Untitled-8 1 14-08-26 4:06 PM BRIEF: PERSONAL INJURY LAW The Ontario legislature is once again considering auto insurance reforms under bill 15. New regulations for health providers coming this year Continued from page 12

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