On January 21st 2013 a series of minor changes were announced for the SABS. The changes will come into effect in June.
It will be interesting to see how closely the changes reflect the reforms proposed by the Auto Insurance Anti-Fraud Task Force. Specifically, will Insurers be required to provide Medical reasons for a denial?
With respect to insurers providing claimants all reasons for denying a claim. The task force report stated:
New regulatory amendments being introduced will help prevent auto insurance fraud and protect consumers by:
- Requiring insurers to provide claimants all reasons for denying a claim.
- Giving claimants the right to receive a bi-monthly, detailed statement of benefits paid out on their behalf.
- Increasing the role of claimants in fraud prevention (e.g. require them to confirm attendance at health clinic).
- Making providers subject to sanctions for overcharging insurers for goods and services and banning them from asking consumers to sign blank claim forms.
These proposed changes address some of the reforms proposed by the Auto Insurance Anti-Fraud Task Force and build on actions the government has already taken to combat fraud and protect consumers, including the reversal of rising premiums as a result of fraud and abuse of the system.