TORONTO, March 4, 2014 /CNW/ - Insurance Bureau of Canada (IBC) is encouraged by today's announcement by the Ontario government that it will introduce legislation to reduce auto insurance costs, fight fraud and protect consumers.
"We're pleased that the government is fulfilling its promise to introduce changes to reduce costs and uncertainty in the auto insurance system," said Ralph Palumbo, IBC Vice-President, Ontario.
If passed, the legislation would:
- Help injured drivers settle disputed claims faster by moving administration of the dispute resolution system from the provincial regulator to the Ministry of the Attorney General's Licence Appeal Tribunal;
- Ensure only licensed health service providers can get paid directly by insurers by establishing a transition strategy for the licensing of providers that bill auto insurers;
- Reduce the amount of time a vehicle can be stored, accruing charges, after an accident without notice to the driver from 60 days to a shorter timeframe; and
- Explore the establishment of a special investigation and prosecution unit on serious fraud, including auto insurance fraud.
"When all of us – industry, government and consumers – work together, we will drive down unnecessary claim costs that do not help claimants recover from injuries," said Palumbo. "The insurance industry is committed to doing whatever it takes to build an auto insurance system that will work for decades to come. Access to affordable insurance is fundamental to the health and success of Ontarians."
About Insurance Bureau of Canada
Insurance Bureau of Canada (IBC) is pleased to celebrate 50 years as a valuable resource for insurance information. Since 1964, IBC has been working with governments across Canada to make our communities safer, championing issues that directly affect Canadians and the property and casualty (P&C) insurance industry. IBC is the national industry association representing Canada's private home, car and business insurers. Its member companies represent 90% of the P&C insurance market in Canada. The P&C insurance industry employs over 118,600 Canadians, pays more than $7 billion in taxes and levies to the federal, provincial and municipal governments, and has a total premium base of $46 billion.
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SOURCE: Insurance Bureau of Canada
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