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Keith Vodden Dr. Douglas Smith - Transports Canada

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Appendix A—Detail on Calculations of the Ontario Model<br />

insurance. We do not estimate a comparable amount for private individuals since out-ofpocket<br />

expenses (calculated in the next section) will include such costs.<br />

The analysis is not able to adjust for property damage caused by motor vehicles<br />

owned by a government since governments typically self-insure. These government<br />

losses are expected to be small.<br />

For 2004, the analysis identifies $2.3 billion in property damages and other losses<br />

typically covered through insurance claims. Removing tow truck services, as discussed<br />

earlier the total is $2.2 billion. A total of 483,000 claims (or quasi-claims for those selfinsured)<br />

are estimated through the analysis. Given the somewhat arbitrariness of our<br />

reduction factors in Exhibit A-20 we revised down the property damage estimate to<br />

reflect the 396,000 vehicles with vehicle damage classified from light to demolished in<br />

2004. In so doing we estimate property damage in 2004 at $1.8 billion.<br />

We allocate this total amount to vehicles damaged in 2004 as follows:<br />

• Demolished -- $20,070.<br />

• Sever -- $10,756.<br />

• Moderate -- $4,565.<br />

• Light -- $996.<br />

We use these values in 2004, and values adjusted for inflation in other years, to<br />

allocate property damage to vehicles involved in motor vehicle collisions by damage<br />

severity.<br />

An alternate assumption would be that the additional 86,000 claims reflect<br />

damage to vehicles in non-reported collisions. (See Section III. A.) If so these claims<br />

likely represent vehicles with light damage involved in PDO collisions. Under this<br />

assumption the number of vehicles with light damage would increase by 86,000, the<br />

factors used to allocate damage to vehicles would change slightly and the total estimated<br />

property damage in 2004 would be $2.3 billion.<br />

9. Out of pocket expense by those involved in motor vehicle collisions<br />

Those involved in motor vehicle collisions may incur out-of-pocket expenses:<br />

• Not covered by insurance, including the insurance deductible of the at fault party<br />

and car rental, hotel or other expenses not covered under the policy.<br />

• Not claimed under insurance, possibly as a result of a low dollar value of total<br />

claim.<br />

• Not insured, for example in the case of an uninsured driver.<br />

TNS Canadian Facts, Social and Policy Research 147

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