In 1989 the Liberal Government of Ontario introduced its first legislated no-fault car insurance scheme. That legislation became effective in mid-1990. Prior to that time Ontario relied on the traditional 'tort' or 'fault system' to determine who would be entitled to insurance money for injuries suffered in car accident and the quantum they would be entitled to receive.This article will set out a very brief summary of the fault system, the initial no-fault system in Ontario, a very brief summary of the various changes to that system and an overview of the current system. As will be seen the current system, while intended to provide for certain needs that arise from car accidents where a person suffers personal injuries, the scheme is extremely complex.The Tort SystemThe traditional tort or fault based system of Ontario has as its roots the British common law. A "tort" is a civil wrong. In car accident cases the specific tort most commonly at issue is negligence. Historically, if a person was injured by the negligence of another person, the injured person was entitled to be fully compensated by the negligent person. If, however, the injured person was fully or partially negligent they were completely barred from any recovery.Over time this changed somewhat. Through legislation and our court system a person that was partially negligent became entitled to recover from the other negligent person damages in proportion to the liability. For example, if a person were 50% responsible for the car accident they would be liable for 50% of the damages.The Initial Ontario No-Fault SystemThe tort system had flaws. It required the person who suffered personal injuries in a car accident to prove the other driver was negligent before they could sue for damages. If the personal injuries prevented the person from working it often mean serious financial difficulties for that person and their family until the long protracted litigation process was completed.At the same time car insurance companies wanted protection from what they claimed were the rising costs of litigation. This protection was apparently requested to keep car insurance rates in Ontario lower while at the same time allowing the car insurers to make a profit.As a result of flaws seen with the tort system the Liberal government of Ontario passed legislation that took effect in 1990 which codified a no-fault car insurance scheme . As of that time anyone that suffered personal injuries in a car accident in Ontario no longer needed to establish fault for the car accident to be entitled to insurance benefits.  For more info, visit  Ontario Insurance.  



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