In the previous post we talked about Indexing of benefits and Insurance deductible.
Benefit amounts and monetary limits are indexed on January 1 of each year immediately following the accident.
The indexation percentage is the percentage change in the Consumer Price Index for Canada (All Items), as published by Statistics Canada under the authority of the Statistics Act (Canada), for the period from September in the year immediately preceding the previous year to September of the previous year.
Indexation applies to the following benefits and monetary limits:
- the weekly amount of any income replacement benefit
- the weekly amount of any non-earner benefit
- the weekly monetary limits applicable to income replacement benefits
- the weekly monetary limits applicable to caregiver benefits
- the monthly attendant care monetary limits
- the outstanding balance of medical and rehabilitation benefits available
- the outstanding balance of attendant care benefits available
- the outstanding balance of medical, rehabilitation and attendant care benefits available to persons who have access to the optional increased medical, rehabilitation and attendant care benefit
It is quite easy to see that if you did not purchase the optional index coverage you would be locked into a fixed amount that does not reflect what is happening in the real world. For example under attendant care benefits, lets say you have a Personal Service Worker (PSW) assisting you with daily responsibilities as awarded by the insurance company, their wages are fixed.
Attendant care is broken down into three sections with hourly rates set last in 2018:
- Routine Personal Care at a rate of $14.90 per hour
- Basic Supervisory Function at a rate of $ 14.00 per hour
- Complex health/care and hygiene functions at a rate of $21.11 per hour
Imagine how hard it is to find a PSW to work for the rates listed in category 1 and 2 as well these rates were not adjusted by the Provincial Government during the pandemic!
QUESTION
- Why does the Insurance Company get to index their deductible on settlements and you have to purchase an option to have your benefits indexed?
- Why has the Premier of Ontario not addressed monies paid to professional workers under SABS during the pandemic let alone the embarrassing legislated wages paid to assist the injured.
Current index amounts are here: 2023 Automobile insurance indexation amounts Guidance | Financial Services Regulatory Authority of Ontario (fsrao.ca)
More on SABS in following sections.