After the Fighting Fraud and Reducing Automobile Rates Act was passed on Thursday, Ontario Trial Lawyers Association (OTLA) President Steven Rastin spoke out about a clause buried within the bill that eliminates a motorists right to sue their insurance provider for denied claims.
Rastin explained that the right to sue has been replaced by forced arbitration, which he claims will be more expensive and time consuming for all involved.
Rastin says OTLA generally supports the bulk of the bill, but the lack of support for auto insurance claimants is a disappointment and unacceptable. In fact, Rastin says the bill also included a reduction in the interest rates that claimants get on their money from insurance suits to 1.3 percent, down almost 4 points from the previous 5 percent.
While the bill was passed under the auspices of reducing fraud, Rastin also complains that the buried clause completely obliterates a victims right to sue their insurance company if they fail to provide adequate benefits.
Not surprisingly, however, the Ontario Insurance Bureau of Canada was pleased with the legislation, citing high insurance rates as the driving force behind its passage.
It remains to be seen how the change will impact auto insurance lawsuits in reality. Regardless, if you or someone you love was injured in an accident, you have the right to hold the responsible party accountable.
Contact the car accident lawyers at Greg Monforton & Partners for a free review of your claim today.
To learn more about your legal options, call 1-866-320-4770 or click "here" to reach us online 24/7.