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
"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
To view media releases and other information, visit the media section of
IBC's website at www.ibc.ca. Follow IBC on Twitter @InsuranceBureau or like us on Facebook.
If you require more information, IBC spokespeople are available to
discuss the details in this media release.
SOURCE: INSURANCE BUREAU OF CANADA
For further information:
To schedule an interview, please contact:
Director, Media Relations
Insurance Bureau of Canada
(416) 362-2031 X-4387