Auto Insurance Reform for Canada's Tort Provinces
Date
2004
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
HEC Montreal
Abstract
Due to its mandatory nature, and because a majority of the population drives, a cost-effective and efficient system of automobile insurance is in the interest of all parties involved. Although a tort system for compensating automobile accident victims works reasonably well for that relatively small number of claimants with serious losses, it does not work very well for the higher volume of relatively minor accidents. In this paper, we suggest means by which Canadian jurisdictions operating a system of tort liability can control costs and improve compensation for accident victims. Suggested reforms focus on improving coordination between public and private-pay aspects of health care; setting first-party benefits at a level which reduces the transaction costs without increasing aggregate costs; reducing or limiting access to payments for compensation for non-economic losses for non-permanent injuries; encouraging an efficient mechanism for dispute resolution; and developing a pricing system that is perceived to be fair by insureds while also providing incentives for safe driving.
Description
Article deposited after permission was granted by publisher, 01/11/2011.
Keywords
automobile insurance, injury accident claims
Citation
Kleffner, A. E. and Nielson, N. L. Auto Insurance Reform for Canada's Tort Provinces, Insurance and Risk Management. Vol. 72, No. 1 (April 2004) pp. 91-121.