In what he calls a “slugging match,” a renowned attorney and Toronto Sun columnist has drawn attention to the escalating tension brewing among auto insurers, industry associations and lawyers.
While he ultimately advocates for MVA victims, he first raises several points suggesting that the auto insurance industry is in need of reform.
“If [insurers] want to talk about ‘real dollars’ that don’t make it to claimants, check out the vast sums paid by insurers for their so-called independent medical examinations (IMEs) used to belittle or deny claims,” writes Alan Shanoff.
He points to the Ontario Health Claims Database as evidence, which asserts that insurance companies have expended $372 million on IMEs in the past four years.
He then proceeds to argue that there were years when insurance companies required nearly 50% of all claimants to undergo these examinations, and that “…multiple and expensive assessments to pro-insurer experts is a major contributor to insurers’ costs and takes ‘real dollars’ out of the pockets of claimants.”
Another lawyer, expounding his opinion in Law Times, holds a similar view.
“If the insurance industry really wants to control costs, I suggest that they take a hard look at what is expected of accident victims when they announce their intention to advance a claim,” writes Bert Raphael. “Immediately there is a list of dozens of demands including an employment file, income tax returns, clinical notes and records of doctors, hospital records, drug store records, Facebook records, information on previous accidents, names and addresses of witnesses, identity of insurer, a statutory declaration as to how the accident occurred, and on and on.”
He adds that lawyers often need to procure these documents before the case becomes a litigious matter. Then, if it does proceed to court, legal professionals must gather insurer-mandated discovery materials and medical reports, both of which contribute to these high attorney fees.
Members of the auto insurance industry have only responded in piecemeal fashion, with the
Insurance Bureau of Canada calling for “increased transparency” and pointing out that personal injury lawyers are not held accountable since they do not report fee schedules to the insurance regulator.
Shernoff, however, does also indicate that the legal community is not without its faults as well.
“There’s a long history of lawyers neglecting to act diligently to expose insurer experts who file partisan reports, sometimes outside their sphere of expertise, used by insurers to delay and deny claims,” he writes. “As well, quality control at some law firms is substandard.”
