New Ontario legislation on auto insurance reforms0 March 5, 2014 at 3:25 pm by Steve Kee
The Ontario government has introduced new legislation “Fighting Fraud and Reducing Insurance Rates Act” to reduce auto insurance costs, fight fraud and protect consumers. IBC welcomes the proposed legislation, which reflects several recommendations from the property and casualty insurance industry.
In particular, the proposed legislation includes changes that would align the prejudgment interest rate that is paid on pain and suffering damages due to collisions with market conditions. The proposed amendment would eliminate the statutory basis for a separate interest rate for non-pecuniary damages. IBC has long advocated for this change, which would help reduce claims costs.
If passed, the legislation would also:
- 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.
IBC has long advocated that when industry, government and consumers – work together, it will drive down unnecessary claim costs that do not help claimants recover from injuries. 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.
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