Ontario brokers are going to Queen’s Park today to deliver a clear message: pass Bill 171 before the election as soon as possible.
“Consumers need this bill passed if there is going to be any chance of getting rates down responsibly,” said Insurance Brokers Association of Ontario CEO Randy Carroll. “We’re happy to see the government continue to implement these much-needed reforms to fight fraud and lower rates for drivers. However, it’s important to understand that the reforms underlying the promised reductions will take time. Not passing this bill will make it nearly impossible.”
Bill 171, the Fighting Fraud and Reducing Automobile Insurance Rates Act, 2014, was introduced on March 4, and implements important sections of the Auto Insurance Anti-Fraud Task Force Report. If it does not pass, says the
IBAO, there will be no way for Ontario to deliver the promised 15 per cent average rate reduction by August 2015.
Ontario Vice-President for the
Insurance Bureau of Canada Ralph Palumbo has been knocking on MPPs’ doors the past few weeks in an effort to convince them to pass the Bill (see
IBC’s Palumbo to Ontario MPPs: Are you listening?). Public reaction to the Insurance Business article was vociferous from the public, excoriating both the Bill itself and Palumbo’s efforts (see
Public rails against Bill 171, Palumbo).
“The IBAO is here today on behalf of the six million policy holder’s our brokers represent province-wide to urge MPPs to work together to get Bill 171 passed,” said Carroll. “The faster fraud can be combatted, the faster premiums can be lowered.”
The Anti-Fraud Task Force report estimated that fraud cost Ontario drivers as much as $1.6 billion every year.
Bill 171 lowers prejudgment interest (PJI) to a reasonable rate, fixes the dispute resolution system as recommended in the Cunningham report, protects consumers from untrustworthy repair and storage shops, and helps implement health clinic licensing.
