How SABS Changes Have Made Ontario Insurers Less Accountable
What Is the Statutory Accident Benefits Schedule (SABS)?
The Statutory Accident Benefits Schedule (SABS) is the framework in Ontario that governs no-fault accident benefits for individuals injured in motor vehicle accidents. These benefits include coverage for medical and rehabilitation expenses, income replacement, attendant care, and more. Unfortunately, recent legislative changes to SABS have shifted the balance of power in favour of insurance companies—making it harder for injured claimants to get fair treatment.
Major 2016 Reform: SABS Disputes Moved to the LAT
In 2016, a significant change to Ontario’s Insurance Act redirected all disputes involving accident benefits to the Licence Appeal Tribunal (LAT). Under section 280, the LAT was granted exclusive jurisdiction over entitlement disputes and benefit amounts. Prior to this change, claimants could bring their cases to Ontario Superior Court, where they could also sue for bad faith conduct and receive punitive or aggravated damages.
Now, if your insurer acts unfairly—delaying payments, making unreasonable demands, or denying benefits without merit—you can no longer seek full accountability in court. Your only remedy is through the LAT, which is limited in the penalties it can impose.
Special Awards vs. Bad Faith Damages: What’s the Difference?
At the LAT, the most serious remedy available is a special award under section 10 of the SABS. This award may be granted when an insurer unreasonably withholds or delays benefits—but it is capped at 50% of the benefits in question and does not include:
- Punitive damages
- Damages for mental distress or emotional suffering
- Court costs or legal expenses typically awarded in bad faith claims
In contrast, a bad faith insurance claim before a court can result in significant punitive damages if the insurer’s conduct was malicious, oppressive, or high-handed—as established in Whiten v. Pilot Insurance Co. Courts have the power to truly penalize misconduct. The LAT does not.
Real Case Example: Stegenga v. Economical Mutual Insurance
In the 2019 Court of Appeal decision Stegenga v. Economical, a catastrophically injured teen alleged bad faith after her insurer mishandled her benefits. While the court agreed that bad faith is a separate legal wrong from a simple benefit denial, it still ruled that the case had to proceed through the LAT.
This case confirmed a troubling reality: even when an insurer behaves badly, your only option may be a limited LAT hearing—with no access to full damages or a public court ruling.
Why Strong Evidence Matters More Than Ever
Because the penalties for insurer misconduct are minimal under the current system, it’s critical to make your accident benefits claim as strong as possible from the outset. At Auger Hollingsworth, our experienced injury lawyers know how to:
- Collect and organize persuasive medical evidence
- Present clear proof of disability and daily life impact
- Prepare you for insurer interviews and examinations
- Anticipate and counter common denial tactics
When your evidence is well-developed, it becomes much harder for the insurer to justify denial. In many cases, a strong file can lead to faster benefits and fewer disputes—saving you time, stress, and financial hardship.
Choose a Lawyer Who Holds Insurers Accountable
At Auger Hollingsworth, we specialize in helping injured Ontarians stand up to insurance companies. We understand the changes in SABS law—and how to work within the system to get our clients the maximum compensation. If you’ve been hurt in a car accident and are struggling to get the benefits you’re entitled to, we can help.
Contact us today for a free consultation. We’ll help you build a solid claim, understand your rights under the SABS, and fight back if your insurer is acting unfairly.
