The Ontario Trial Lawyers Association, of which Natalie Clarke has been a long-standing member, recently issued a report card on the “three Ps” of auto insurance: Profits, protection and premiums.

The insurance industry should be proud of its A+ grade in profits, not so proud of its D mark for protection and C- for premiums, in the opinion of the trial lawyers.

The insurance industry A+ grade for profits is based on the OTLA’s report of insurance profits of $3 billion in 2011 and 2012, with continued high rates of profitability for 2013.

It estimates the insurers’ return on equity in the range of 16% to 20%. How is that possible? Premiums are higher and payouts are lower.

But don’t insurers deserve to achieve high rates of return now to compensate for their lost billions in the years prior to 2010? According to the OTLA, recently restated industry figures show the losses never occurred.

The industry showed a profit in the three years prior to 2010. But weren’t these huge losses used to justify the slashing of no-fault accident benefits in 2010? Yes, and that leads to the D grade in protection.

The OTLA estimates benefits have been reduced by 96.5%. That’s due in large part to the reduction of medical and rehabilitation benefits from a maximum of $100,000 to $3,500 for most accident victims.

The $100,000 limit for medical/rehabilitation expenses for non-minor injuries was reduced to $50,000.

Worse, these limits include the cost of medical reports and insurers often send accident victims to their preferred sources of so-called independent medical examinations in an attempt to delay and deny benefits.

Too many of the experts who conduct these independent exams earn substantial portions of their income from insurance companies and are beholden to them.

The insurance industry continues to push for “reform” of the definition of catastrophic impairment so as to reduce the coverage for those in most serious need of aid.

But, haven’t premiums dropped?

Sorry, the C- grade for premiums is based on an increase in premiums of 20% since 2009.

While rates are supposed to drop by 15% over the next two years, insurers continue to push for further “reforms” as a quid pro quo for premium cuts.

Some insurers started to reduce their rates last year. Why haven’t more? After all, every insurance company sells the same motor vehicle insurance policy.

In my view, the OTLA report card is missing two important subjects in which the insurance industry deserves an A+.

Those are public relations and delay and deny tactics.

The industry continues to do an excellent PR job convincing the public and politicians that fraud is the major issue facing the industry and that further reforms, meaning reductions in benefits, are necessary.

While fraud is a big problem, it shouldn’t be used to justify maltreatment of accident victims.

As part of the PR efforts of the insurance industry, its money continues to be shuffled to politicians.

Last year, the insurance industry’s lobby group gave $27,900 to the Liberal Party. So far this year they’ve given $20,950.

Those figures don’t include donations made by individual companies.

(The Insurance Bureau of Canada also gives money to the Progressive Conservative Party, $10,050 in 2012 and $18,960 so far this year.)

The industry also continues to do an excellent job in the delay and denial of claims.

Insurance companies deserve top marks in forcing victims to participate in the lengthy mediation/arbitration or mediation/litigation process.

Adjusters and insurer experts continue to do an excellent job denying claims and providing opinions to justify the denial of claims.

All in all, an excellent report card for insurers. But not so good for the public.

If you are a survivor of a car crash and need rehabilitation treatment, you inevitably, will undergo multiple insurance assessments with the assessors hired by your insurance company. These assessments are routinely requested by the mva injuries insurance company with the assessors of their choice (often the same doctors) to determine whether the insurance company can refuse to pay for your treatment because in their opinion the treatment recommended by your treating doctor is not “necessary”.

The complaints about such doctors should be released to the public under the new Transparency Principles that are being developed by the College of Physicians and Surgeons of Ontario. The Ontario Trial Lawyers Association, of which Natalie Clarke is a member, had submitted a very important feedback document to the College of Physicians and Surgeons of Ontario on their “Draft Transparency Principles”. One key issue that OTLA raised was related to those Insurer Examinations under the Insurance Act and its regulation, the Statutory Accident Benefits Schedule.

Throughout the years, claimants voiced concerns about the conduct of insurance doctors in their assessments and preparation of their reports. In addition to the incidents of unqualified medical practitioners carrying out insurer medical assessments, there is a widespread perception that reports are often biased and that these assessors operate without fear of professional sanction in an environment that lacks transparency and accountability. OTLA’s submission requesting that more information about such doctors be publicly available, is a positive step in furthering transparency in the realm of insurance assessments.

With the rise of the internet, it is becoming increasingly easier for people to pretend to be someone they are not. Unfortunately, this means it is not always evident immediately who is trustworthy. Scams like fake insurance companies are a real problem. Here are some tips to help you avoid scammers.

Insurance scammers often advertise heavily discounted insurance, often auto insurance, under the guise of working for a legitimate insurance company, and claim they can find you insurance coverage at rates significantly lower than what you are paying currently.

It is illegal to drive without auto insurance, even unknowingly. It is your responsibility to ensure you have the correct coverage. But if you are in a car accident, Clarke Law can help.

So what can you do to protect yourself?

DO NOT pay a referral fee – licensed agents and brokers do not charge you fees.

DO NOT pay your auto insurance premium through a wire transfer or money wiring service – this is not a practice in the insurance industry.

DO complete an Ontario Application for Automobile Insurance – Owner’s from (OAF1) application when applying for auto insurance. If an agent or broker completes the form on your behalf, check it for accuracy – by signing the contract, you’re agreeing to the statements made by the insurance company.

DO contact the police if you suspect fraudulent activity on the part of an insurance company.

DO ensure the insurance agent you are working with is legally allowed to sell auto insurance – check at www.fsco.gov.on.ca or www.ribo.com

DO check that the insurance company is licensed as well.

Clarke Law prides themselves on providing you with professional, quality service. Contact us today if you need a car accident lawyer.