The Ontario Trial Lawyers Association (OTLA) is urging the provincial government to commission an independent review of the Licence Appeal Tribunal (LAT), following updated data showing injured claimants increasingly losing disputes against insurers. The association has called for a comprehensive review of LAT operations, including enhanced transparency, quality-control measures, and more consistent adjudication.
In 2024, only 8% of applicants succeeded on all issues at a hearing, continuing a decline from 11% in 2023 and far below the 33% success rate in LAT's first full year in 2017.
LAT handles disputes between accident victims and insurance companies, primarily over Statutory Accident Benefits, which cover medical care, rehabilitation and income replacement. Since its establishment, LAT has issued more than 5,600 decisions, but OTLA warned that procedural rigidity, inconsistent rulings and growing technical complexity have made it harder for claimants to access benefits.
Members also reported that the Tribunal often fails to provide natural justice or procedural fairness, leaving injured consumers at a disadvantage.
OTLA president Mary-Anne Strong (pictured) noted that the data reflects longstanding concerns from members and raises questions about whether LAT is meeting its legislative mandate to provide a fair, efficient, and accessible dispute resolution process. She emphasized that the decline in claimant success rates signals systemic issues that need to be addressed before public confidence in the tribunal erodes further.
For the insurance market, these trends have implications. Fewer successful claims reduce insurer payouts, potentially strengthening their short-term financial positions.
However, persistent perceived unfairness may undermine policyholder trust, affect claim behavior, and influence decisions on coverage and accident benefits product offerings. Insurers could face reputational and regulatory pressure if systemic issues at LAT are not addressed.
Strong said a review would help identify the root causes of these troubling trends and provide a roadmap to restore fairness and public confidence in the accident benefits system and the broader insurance market.
