Ontario Regulation 383/24, made under the Insurance Act introduces amendments to Ontario Regulation 34/10, particularly in relation to the Statutory Accident Benefits Schedule. Effective July 1, 2026, this regulation outlines new provisions for optional benefits for motor vehicle liability policies. A central feature of this regulation is the introduction of optional benefits under Parts II, IV, V, and VI, mandating that every insurer must offer these benefits for contracts entered into or renewed on or after July 1, 2026. This change allows drivers to choose whether to include these optional benefits in their insurance coverage.

For contracts renewed after July 1, 2026, existing benefits will continue as optional benefits unless the named insured and their insurer mutually agree in writing to decline or modify them. The optional benefits will apply not only to the named insured but also to their spouses, dependants, and specifically designated drivers of the insured vehicle, broadening the coverage for individuals connected to the primary policyholder. The regulation specifies various types of optional benefits that insurers must offer, such as income replacement benefits, non-earner benefits, caregiver benefits, and additional coverage for lost educational expenses, housekeeping, home maintenance, and damage to personal items like clothing and glasses, as well as death and funeral benefits.

A notable change introduced by the regulation is the flexibility in determining benefit amounts. Instead of being fixed, the amounts will be determined by the optional benefits chosen by the insured, providing policyholders with more tailored and relevant insurance coverage. Individuals will have the option to purchase these benefits at any time before an accident occurs, and insurers are required to issue endorsements for any optional benefits purchased, ensuring clarity and compliance with the regulatory framework. Additionally, the regulation includes provisions for the payment of examination expenses as another optional benefit, further expanding coverage.

The regulation allows insurers to offer optional benefits not explicitly listed, provided these benefits receive approval from the Chief Executive Officer, thereby promoting innovation and responsiveness within the insurance market. While the regulation is set to come into force on the day it is filed, specific sections will take effect on July 1, 2026. These amendments are expected to enhance consumer choice in Ontario’s auto insurance market, enabling policyholders to customize their coverage according to their individual needs and circumstances. The shift toward optional benefits reflects a broader trend in the insurance industry towards more flexible and personalized solutions.

Ontario Regulation 383/24 intent is to offer consumers improved flexibility and the opportunity to select from a range of optional benefits tailored to their unique situations. This regulation aims not only to improve coverage but also to foster a more informed decision-making process among policyholders regarding their insurance options.

Ontario (383/24) October 26, 2024