Keith Vodden Dr. Douglas Smith - Transports Canada
Keith Vodden Dr. Douglas Smith - Transports Canada
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