Insurance industry welcomes reforms to reduce auto insurance rates

TORONTO, Nov. 20, 2014 /CNW/ - Today, Insurance Bureau of Canada (IBC) welcomed news that the Ontario legislature has passed Bill 15, the Fighting Fraud and Reducing Automobile Insurance Rates Act.

"It's a great step and strikes a blow at those in the car accident business who have wrongly profited from the current auto insurance product," said Ralph Palumbo, Vice-President, Ontario, IBC.

Bill 15 provides the basis for:

• Establishing a more efficient and effective dispute-resolution system
• Continuing the right of claimants and insurers to appeal decisions to the courts
• Continuing the right of claimants to pursue tort claims in court
• Reducing the prejudgment interest that can be awarded for non-economic losses to reflect current interest rates
• Reducing fraud and abuse in the towing and vehicle storage industries.

"Everyone – including the insurance industry – is in agreement on one thing: auto insurance in Ontario is far too expensive. We realize the financial hardship it can create for vehicle owners, particularly young people and those in northern and remote communities," said Palumbo. "Now we have an opportunity to begin fixing the system once and for all."

The Bill still requires Royal Assent to become law. Certain provisions of the Bill will not be in effect until proclaimed by the Ontario government. 

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 to the federal, provincial and municipal governments, and has a total premium base of $48 billion.

To view media releases and other information, visit the media section of IBC's website at www.ibc.ca. Follow IBC on Twitter @InsuranceBureau and @IBC_Ontario 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

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