NDP Health Critic France Gélinas says the McGuinty Liberal government must reject a recommendation to reduce the cap for medical and rehabilitation benefits for non-catastrophic auto accident insurance claims to $25,000 from $100,000.

The recommendation, contained in the Financial Services Commission of Ontario (FSCO) 5-year auto insurance review would slash the maximum insurance payout for car crash injuries by 75 per cent – from $100,000 to $25,000.

“This change would impoverish victims, push health-care costs onto the taxpayer, and enrich the insurance industry. The cap for med-rehab was $25,000 almost 20 years ago. In the last 20 years, costs have risen, mortality rates have declined and public sector health services have been decimated. Factor in inflation, and reducing the cap in 2009 to $25,000 is inhumane,” said Gélinas.

The insurance industry has argued for the changes because of a decline in return on equity. However, as Gélinas noted, despite the slowing economy, return on investment in the industry in 2008 was still a healthy 7.5 per and that it has averaged 15 per cent over the past number of years.

“Implementation of this recommendation would seriously damage the quality of rehabilitation services provided to accident victims. The McGuinty government must reject this change. If anything, the cap needs to go up, not down,” said Gélinas.