On October 16, 2024, the Ontario Government confirmed an amendment to the Insurance Act, and, more specifically, to Ontario Regulation 34/10: Statutory Accident Benefits Schedule (the “SABS”).
The SABS is legislation that mandates a certain level of insurance coverage for those injured in motor vehicle accidents in Ontario. This coverage is available regardless of fault.
The current system
Under the current system, the SABS offers a set of benefits automatically included in all standard automobile insurance policies. These benefits provide essential financial support for those injured in automobile accidents and include:
- Medical and rehabilitation benefits;
- Income replacement benefits for those unable to work or working at a reduced capacity;
- Caregiver benefits for those unable to care for dependants as they did previously;
- Non-earner benefits for those individuals not earning an income, including students, retired individuals, or homemakers; and,
- Death and funeral benefits for families of individuals who died because of an accident.
The new system
Effective July 1, 2026, the system will undergo a significant change. Coverage will revert to an “opt in” process for all benefits other than basic medical, rehabilitation, and attendant care benefits. In other words, if you expect coverage for any of the following benefits to be included in your policy, you must explicitly elect and pay extra for them:
- Income Replacement Benefits;
- Non-Earner Benefits;
- Caregiver Benefits;
- Educational Expenses;
- Visitor Expenses;
- Housekeeping/Home Maintenance Expenses;
- Death and Funeral Benefits; and,
Impact and planning for your family
These reforms have apparently been made with the intention of keeping costs down for drivers and providing more choice. The impact, however, could be devastating for those injured in car accidents after July 2026. This new, basic level of coverage offers limited support.
Stay informed about your options for automobile insurance. Review your personal circumstances regularly and consider them when tailoring your automobile insurance coverage to fit the needs of you and your family.
If you have any questions related to this blog post, contact a lawyer in the Siskinds Personal Injury department.