Income benefits limit reinstated in Ontario

A move by the former Ontario Conservative government to reduce income replacement benefits (IRBs) for auto accident victims has been revoked by the new Liberal leadership.This week, the Financial Services Commission of Ontario (FSCO) announced that the move to reduce weekly maximum IRBs to $300 from $400 has been rescinded. The change was previously announced on September 18 of this year, less than a month before the provincial election. Some critics have questioned the jurisdiction of the Conservatives to have announced changes to the auto insurance program within the month prior to the election.Originally the new limit would have applied to policies issued or renewed after January 1, 2004, and would have required insurers to offer an optional coverage for IRBs of $400 per week. Currently, insurers are already required to offer optional coverage up to $600, $800, or $1,000 per week, and this practice will continue, FSCO says.