TORONTO, Jan. 22, 2013 /CNW/ - Insurance Bureau of Canada (IBC)
congratulates the Ontario government on its most recent efforts to
tackle auto insurance fraud. Late yesterday the government announced
that it would be introducing new regulatory amendments aimed at making
insurers, consumers and health care providers more accountable when
dealing with claims as a result of motor vehicle accidents. The
proposed regulations would be another important step toward stamping
out fraud and reducing the cost of automobile insurance premiums.
"We congratulate the government for moving ahead with these crucial
reforms," says Ralph Palumbo, Vice-President, Ontario, with IBC. "The
proposed regulations would make the system more transparent and fairer
for everyone - consumers, insurers and health care providers. We all
need to work together to fix our broken system."
Under the new rules:
Insurers would be required to provide claimants with all reasons for
denying a claim.
Claimants would have the right to receive a bi-monthly detailed
statement of benefits paid out on their behalf.
Claimants' role in preventing fraud would be increased. For example,
they would be required to confirm their attendance at health clinics.
Health care providers would be subject to sanctions for overcharging
insurers for goods and services and, providers would be banned from
asking consumers to sign blank claims forms.
Requiring claimants to be more vigilant about their involvement in the
claims process after a motor vehicle accident is a crucial move,
Palumbo says. "Claimants can help stop abuse by being active
participants in their own healing," he says.
The new rules would also help curb abuses by a small minority of
unscrupulous health care providers who scam the system by overcharging.
Finally, requiring insurers to provide reasons for denying a claim and
details of benefits paid out are positive steps. They reinforce the
industry's position that everyone - including insurers - has a role to
play in fighting fraud.
"Insurers are ready to do their part," adds Palumbo. "More reforms are
needed. We are optimistic that, if we all work together, we can
achieve a better auto insurance system for consumers."
IBC continues to advocate for a range of reforms to the Ontario auto
insurance system, including the adoption of a new science-based
definition of catastrophic loss and the licensing of health clinics
that assess and treat injured people who make auto insurance claims. It
is currently conducting a wide-ranging consumer education campaign to
explain to Ontarians how auto insurance works, and highlight the high
cost of fraud and its effect on premiums.
About Insurance Bureau of Canada
Insurance Bureau of Canada is the national industry association
representing Canada's private home, car and business insurers. Its
member companies represent 90% of the property and casualty (P&C)
insurance market in Canada. The P&C insurance industry employs over
115,000 Canadians, pays more than $7 billion in taxes to the federal,
provincial and municipal governments, and has a total premium base of
To view media releases and information, visit the media section of IBC's
website at www.ibc.ca and for IBC on Twitter follow @insurancebureau.
SOURCE: INSURANCE BUREAU OF CANADA
For further information:
If you require more information, IBC spokespeople are available to discuss the details in this media release.
To schedule an interview, please contact:
Media Relations Officer
Insurance Bureau of Canada
416-362-2031 ext. 4312