Should Car Thieves be Entitled to Injury Compensation?

Somehow it sounds crazy – and most people shake their heads when they hear about it.

A criminal steals a car – maybe provoking a police chase – and sustains injuries in a subsequent collision.  And in Canada, that thief is entitled to the same medical portion of the accident and death benefits coverage* as the rest of us.

But that’s about to change…at least in Manitoba and Saskatchewan.

Those two provinces have government-run insurance systems, disallowing competition by private insurers.  Taxpayer groups have lobbied the two provincial governments to terminate benefits to car thieves.

The result: both have just announced they will introduce legislation significantly reducing accident benefits to drivers injured while in the process of stealing a vehicle.

When can we look for similar changes in Ontario?

The insurance companies operating in this province are already grappling with the highest loss ratio of accident benefits claims anywhere in the country.  I know they would love to terminate the practice of reimbursing car thieves.  But, although this rational move would be supported by the vast majority of policyholders, insurers can’t make the change until the Insurance Act is amended by the Ontario government.

Premier McGuinty…..are you listening?

* in Ontario, Income Replacement and Non-Earner Benefits only are excluded when the injured person is convicted of a criminal offence involving the operation of an automobile (i.e. theft).

Tags: Automobile, claims, coverage, criminal, injury, insurance, insurance act, ontario, theft