ISAC staff members Anu Bakshi and Asif Khan recently co-authored an article published in Policy Options, the digital magazine for the Institute for Research on Policy Policy (IRPP), about a small change with big implications that was tucked into Ontario’s 221-page 2024 budget.
The small change in question was billed as a consumer relief measure: the option to “opt out” of income-replacement benefits coverage under auto insurance. These benefits had previously been mandatory.
Anu and Asif argue that giving consumers the choice to “opt out” of income replacement benefits will have a huge impact on low-wage workers who may end up saving now as they try to keep their regular cost of living down, but who could end up losing out on significant income supports in the event of a motor vehicle accident.
This change will have the effect of forcing workers recovering from an injury related to a motor vehicle accident to turn to inadequate, publicly-funded sick benefits or social assistance programs, while insurance companies will continue to profit.
Click here to read the whole article on the Policy Options website, or click on the image/link below.