I’m being told by my friends at Queens Park that we will have a new clause inserted in the standard auto policy. The new “Care Not Cash” clause is to be grandfathered and included into all of the standard automobile insurance policies in Ontario. This clause will prevent injured individuals from settling their accident benefits claim for a lump sum.
I’m not sure how this will help bring down drivers premiums, claims costs, or reserves. The clause seems to be pointed directly at the Plaintiffs insurance bar.
When the past Liberal government commissioned the David Marshall report he was very critical of insurers settling SAB cases citing expensive lawyer fees which resulted in less money going to injured plaintiffs. He suggested insurers were their own worst enemy and this was a practice that should be stopped.
It appears with the most recent Court of Appeal decision on how to tabulate personal injury damages and the assignment of AB’s to a tort insurer, plaintiff auto accident injury litigation will be dramatically complicated.
From a practical standpoint I have seen so many changes and interpretations thank heavens I do not find this intimidating. I have some great ideas as to how Plaintiffs counsel and Defence counsel can approach this. If anyone would like to share ideas or co write an article give me a call.
Please feel free to contact Joe via his LinkedIn for annuity illustrations or other structure questions and the advantages of placing your structures with the experts at EPS Settlements Group of Canada .
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