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Micra Agreement: Understanding What It Is and Why It Matters

If you`re a resident of Ontario, Canada, you may have heard of the term Micra Agreement. It`s an important legal term that refers to a specific clause in automobile insurance policies that limits the amount of compensation that can be awarded in case of personal injury or death caused by a motor vehicle accident. In this article, we`ll dive deep into the Micra Agreement and its significance for Ontarians.

What is the Micra Agreement?

The Micra Agreement, also known as the Minor Injury Guideline (MIG), was introduced in 2010 as part of the Ontario government`s efforts to tackle the rising insurance premiums in the province. It`s a set of guidelines that define what constitutes a “minor injury” and the maximum amount of compensation that can be awarded for such injuries.

According to the MIG, a “minor injury” is defined as any injury that falls under one of the following categories:

– Sprains

– Strains

– Whiplash-associated disorders

– Contusions

– Abrasions

– Lacerations

– Punctures

In case of a minor injury caused by a motor vehicle accident, the MIG sets the maximum amount of compensation at $3,500. This means that if you sustain a minor injury in an accident, the insurance company is not liable to pay more than $3,500.

Why Does the Micra Agreement Matter?

The Micra Agreement has been a contentious issue since its introduction, with many critics arguing that it unjustly limits the compensation for accident victims. Here are some reasons why the Micra Agreement matters:

1. It Limits Access to Justice

The Micra Agreement limits the amount of compensation that can be awarded to accident victims with minor injuries. This can be problematic because not all injuries are visible or easy to diagnose. Some injuries, such as concussions, can have long-term effects that may not be apparent immediately.

2. It Disproportionately Affects Low-Income Communities

The Micra Agreement has a disproportionate impact on low-income communities. People in these communities are more likely to use public transportation or walk to work, which means they are less likely to have car insurance. When they do purchase car insurance, they often buy the minimum coverage required, which includes the Micra Agreement.

3. It Favors Insurance Companies

The Micra Agreement benefits insurance companies by limiting the amount of compensation they have to pay out. This means they can increase their profits while reducing their costs. Accident victims, on the other hand, may not receive the compensation they deserve.

Conclusion

The Micra Agreement is a controversial clause in automobile insurance policies in Ontario. While it was introduced to address rising insurance premiums, it has been criticized for limiting access to justice and disproportionately affecting low-income communities. If you`ve been involved in a motor vehicle accident in Ontario, it`s important to understand the Micra Agreement and its limitations. Consulting with a personal injury lawyer can help you navigate the legal system and ensure you receive the compensation you deserve.