TORONTO, May 2, 2013 /CNW/ - Linking cost reductions with lower premiums is the only way to ensure a viable auto insurance product in Ontario, according to Insurance Bureau of Canada (IBC).
"Today's budget begins the long process of further improving the auto insurance system in Ontario," said Don Forgeron, President and CEO, IBC. "Introducing reforms to lower costs is the first step in reducing rates for drivers."
As announced earlier this week, the government is proposing to tackle auto insurance fraud, transform the dispute resolution system, and base benefits on medical evidence. Legislation to implement some of these measures is being introduced today.
"We are calling on the NDP to support quick passage of the budget bill in the legislature and at committee. Making unnecessary amendments will only delay drivers from realizing savings," added Forgeron.
The budget also commits the government to look at additional cost saving measures, such as provincial oversight of towing, and amending the definition of catastrophic impairment in the Statutory Accident Benefits Schedule. Also encouraging is the government's commitment to have an independent annual review of the system with a view to further reforms.
"As we have always said, the auto insurance system needs regular maintenance to ensure it is working for consumers," said Forgeron. "We want to work with the government and all stakeholders to develop workable solutions to the complex problems that plague the current auto insurance product. We are hopeful that the NDP and will support these much needed reforms, and not stand in the way of lower costs and, by extension, lower premiums for consumers."
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 $44 billion.
If you require more information, IBC spokespeople are available to discuss the details in this media release.
SOURCE: INSURANCE BUREAU OF CANADA
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