IBC, brokers pleased auto insurance bill passes in Ontario

The Insurance Bureau of Canada said Thursday it welcomed the 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 for Ontario at IBC said in a statement issued shortly after the bill passed. 

Related: Auto insurance rate cut behind schedule; Ontario insists it will meet target

Today, Ont. passed new auto insurance bill to fight fraud & abuse, reduce costs & uncertainty and help save $$ for Ontario drivers #onpoli

— Ministry of Finance (@OntMinFinance) November 20, 2014

IBC says that Bill 15, which still requires Royal Assent to become law, 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,” Palumbo noted. “Now we have an opportunity to begin fixing the system once and for all.”

Bill 15 strikes a blow at those in “car accident business” (those wrongly profiting from current insurance product) http://t.co/GiBKHN2psU

— IBC (@InsuranceBureau) November 20, 2014

In a statement also issued Thursday, the Insurance Brokers Association of Ontario also welcomed the passage of the legislation. “On behalf of the six million policyholder’s our brokers represent province-wide, IBAO is happy to see the passage of Bill 15,” Chris Floyd, the association’s president said. “This is a good step towards the responsible reduction in insurance costs by fighting fraud”.

Ontario auto insurance premiums have already dropped over 6%, on our way to 15% reduction http://t.co/F3bLLIlRH2 #onpoli

— Press Office (@LibPressSec) November 20, 2014

The Ontario New Democrats have been critical of the bill, while the Ontario Trial Lawyers Association and the towing industry have also opposed aspects of the bill.

2day ONDP & I proudly voted against Bill 15 which strips Ontarians of the right to sue Ins companies who deny benefits to injured victims

— Jagmeet Singh (@jagmeetNDP) November 20, 2014

The Liberals have already slashed & capped benefits we receive, reducing both legitimate & fraudulent claims & saving the industry billions

— Jagmeet Singh (@jagmeetNDP) November 20, 2014

Bill passed today MT @ArshyMann: wrote last week about problems Ontario Trial Lawyers Association sees with Bill 15. http://t.co/Mho8sOj9Ww

— Brian Platt (@btaplatt) November 20, 2014