The Toronto Star reports today that a German firm is seeking federal approval to bring a legal insurance plan to Canada.
...the federal government's superintendent of financial institutions has been asked to approve a plan that would allow Canadians to purchase insurance premiums for less than $500 a year, which would cover up to $100,000 in legal expenses, including the cost of a lawyer preparing and arguing a case court.
The types of cases covered could include wrongful dismissal and other employment disputes, tax problems, personal injury claims and property fights with neighbours, according to Barbara Haynes, chief executive officer of DAS Canada, the Canadian arm of the German company seeking to do business here.
- To what degree will insurance company approvals for specific legal procedures and actions be mandated by any ultimate plan?
- Will the right for individuals to the legal counsel of their choice be preserved?
- How will solicitor and client privilege be protected if ongoing reports by counsel to the insurer are to be required under an insurance plan?
- What will the public's recourse be in the event of questionable denials of coverage?
- Perhaps most importantly, how will the privacy of litigants enrolled in such a plan be protected internationally?
- Garry J. Wise, Toronto
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9 comments:
My questions are:
Who says which lawyer does the work?
Who makes the profit from this venture....yet another insurance company?
what happens when the $100,000 runs out?
Me thinks there are too many variables to work with here...the concept sounds good..... but the fine print needs some work.
I am not sure I want yet another insurance company screwing me...and now legally uggh!
To what degree will insurance company approvals for specific legal procedures and actions be mandated by any ultimate plan?
A: 100 % correlation
Will the right for individuals to the legal counsel of their choice be preserved?
A: No
How will solicitor and client privilege be protected if ongoing reports by counsel to the insurer are to be required under an insurance plan?
A: Your client with the insurance policy has all ready signed off on this.
What will the public's recourse be in the event of questionable denials of coverage?
A: The courts and the language of the policy will prefail
Perhaps most importantly, how will the privacy of litigants enrolled in such a plan be protected internationally?
A: The client signs off on this when they purchase the plan.
My prediction is this will not be a popular product in this country.
I think its pretty distinguishable from medical care. I think the right to representation is kind of covered by public defenders and in a sense is a "public option"
Mike
TOPEKA LAWYER
Mike:
We don't have a public defender system in Canada that parallels the US version.
Instead, we have provincially-financed legal aid plans that provide funding to allow a litigant or accused to retain a participating private lawyer of his or her choice.
Many of the most seasoned and competent criminal lawyers in Canada have traditionally accepted such cases.
The legal aid plans are chronically underfunded, however. Ontario's criminal lawyers are essentially now "on strike" and refusing to accept legally aided clients in serious matters.
GJW
Legal representation in Canada is dicriminatory against the middle class.
The wealthy can afford it, the poor are given it... the rest buy will kits in Staples and hope it's all good.
Having said that - I don't think that bigger government in ANYTHING is the way to go.
With $100K in legal coverage... I wonder how many suits may be started and dropped after the coverage has been reached. The idea is too ripe for abuse...
I for one, do not think that legal representation is a "human right." I do think charges by a government against one of it's citizens should be answered professionally - but we already have that.
Wow, a an insurance product comes along which offers to help fix a lot of problems, and it still get's hammered. Having had experience in legal expenses insurance, let me offer some "educated" insight.
If the $100k runs out, yes, you're on your own. That's what a limit means. However, think of the hole you'd be in without the $100k. Higher limits are probably available, if you want to consider them.
No insurance policy is going to give you cart-blance protection. There will be a wording which will specifically state what you're covered for. Typically, it will be things like Breach of Contract, Investigations by CRA, Real Estate disputes, Employment Disputes, etc.
The insurer will utilize a panel of approved lawyers, which obviously, have agreed rates. You're usually free to chose which lawyer from that panel.
You still retain client/lawyer privilege... the insurer just pays the bills for approved fees, up to the policy limit.
Some of the answers given by some of the respondents are clearly ill-advised and misguided.
Legal Expenses insurance in Canada is undoubtedly a positive step, but before people start criticizing it, why not wait until it's actually available.
Legal Expense Insurance HAS been in Canada for over 15 years. STERLON Underwriting Managers Ltd have been here strong and steady.
Now with DAS coming in, people are overlooking the smaller companies that really did all the work in establishing a presence here in Canada.
More research would have shown that LEI (and STERLON) has been in Canada before DAS, and will continue to stay long after the big commotion calms down.
This blog post has become a bit of a magnet for unsolicited emails from apparent legal expense insurers.
I don't intend to publish any promotional materials from legal expense insurers, so please do not send them to me.
Garry J. Wise
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