Canadian Market (December 01, 2010)

BANKS TAKE LONG-TERM VIEW ON LOBBYING FOR RIGHT TO SELL, MARKET INSURANCE

Banks are predictably lobbying the federal government during the 2012 Bank Act review to lift restrictions preventing banks from marketing and selling insurance products in their branches. But a recent Canadian Bankers Association (CBA) submission suggests banks see this more of a long-term than a short-term project.

For example, a CBA submission to the Department of Finance Canada contemplates a post-review scenario in which the restrictions remain. “In the period following the 2012 review, we would look forward to having an opportunity to engage the government and other stakeholders in discussions on enhancing consumer choice by removing unnecessary restrictions on the sale and marketing of insurance products,” the submission reads.

By statute, the current mandatory Bank Act review needs to be completed by no later than Apr. 20, 2012.

CANADA TAKES AIM AT AUTO THEFT AND TRAFFICKING IN STOLEN CARS

Parliament has passed new legislation aimed at getting tougher on auto theft and trafficking in stolen property such as cars.

The new legislation contains provisions that:

• create a separate offence of “theft of a motor vehicle,” which carries a mandatory prison sentence of six months for conviction of a third or subsequent offence when the prosecutor proceeds by indictment;

• establish a new offence for altering, destroying or removing a vehicle identification number (VIN);

• make it an offence to traffic in property obtained by crime; and,

• make it an offence to possess such property for the purpose of trafficking.

In addition, the act would allow the Canada Border Services Agency to detain suspected stolen property before it is exported from the country, which is intended to reduce the exportation of stolen vehicles from Canada by organized crime.

NEW BRUNSWICK BEGINS PROMISED REVIEW OF THE PROVINCE’S $2,500 MINOR INJURY CAP

New Brunswick is officially pressing ahead with its promised review of the province’s $2,500 cap on minor auto injuries. A task force is expected to engage in public consultation and then issue a report sometime around May 2011.

The working group will carry out its review and conduct consultations in two specific areas:

• the adequacy of the $2,500 cap and the impact of an increase to the cap comparable to neighbouring jurisdictions on average premiums; and

• the current definition applied to soft-tissue damage and the effects of any recommended changes that might be made.

The province announced on Nov. 4 that it is responding to concerns about the $2,500 cap on awards for accident victims and the legal definition of soft-tissue injury by creating a working group tasked with ensuring the current legislation is fair and reasonable.

The chair of the working group will be selected by the provincial government and is expected to hand in a final report within six months.