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Family nearly bankrupt after new insurance rules cut benefits

October 12th, 2016  |  Personal Finance

Earlier this summer changes to Ontario auto insurance resulted in lower premiums for the majority of drivers. Good news for many, but the changes, which reduced benefit Accident, Medical, and Rehabilitation Benefits have cost one family dearly.

On June 1, the same day the changes went into effect, Adam Bari was struck while riding his motorcycle. According to a report by CBC, his injuries left him comatose for a month and even once awake he has yet to recover full mobility. 12 hours earlier and a personal injury lawyer says he would have qualified for catastrophic compensation under his auto insurance policy. Instead, he gets $86,000.

The dramatic difference between the amounts comes from both the combination and reduction of coverage amounts, as well as different rules for determining what constitutes a catastrophic injury or not. Under the new rules Adam’s life-threatening injuries were deemed non-catastrophic. His rehabilitation will require a personal support worker as well as physiotherapy, both of which don’t come cheap.

As Adam can no longer work and his wife has had to reduce her working hours to care for him, their income has taken a huge hit. Unable to make mortgage payments, their mortgage insurance policy is the only thing keeping them in their home. The family plans on filing a lawsuit against the driver who hit Adam, but the legal route will still cost them time and money. In the meantime, the family worries that they will burn through their benefit and be left with nothing.