Decision Guidance: 2023 Automobile insurance indexation amounts
The Financial Services Regulatory Authority of Ontario (FSRA) is releasing the 2023 indexation amounts related to auto insurance injury claims. These adjustments ensure the values of consumer benefit payments are maintained in relation to inflation.
Under the Insurance Act, FSRA is required to publish the indexation percentage and certain amounts annually for purposes of the Statutory Accident Benefits Schedule and tort claims.
The 2023 indexation rate is 6.9% (a 2.5% increase from 2022) and applies to, for example, monetary and deductible amounts related to specific court awards for claimants. It also applies to certain benefits listed under the Statutory Accident Benefits Schedule, including but not limited to:
- income replacement benefits
- medical and rehabilitation benefits
The indexation rate is calculated using data from Statistic Canada’s Consumer Price Index for Canada (All Items). The Consumer Price Index is an indicator of changes in consumer prices experienced by Canadians.
The 2023 indexation changes apply to:
- monetary thresholds and deductibles for determining non-pecuniary tort awards under the Insurance Act and O. Reg. 461/96, (Court Proceedings for Automobile Accidents that Occur on or after November 1, 1996)
- amounts that are required to be indexed pursuant to the:
FSRA continues to work on behalf of all stakeholders, including consumers, to ensure financial safety, fairness, and choice for everyone.
Learn more at www.fsrao.ca.