The government is moving on several fronts with legislation designed to speed up arbitration between accident victims and insurers, and licensing medical clinics to prevent double-billing and false claims.
Finance Minister Charles Sousa unveiled legislation today designed to speed up arbitration between accident victims and insurance companies, license medical clinics to stop them from double-billing and prevent people from making false claims, and cut the amount of time a vehicle can be stored.
“These actions will reduce fraud, these actions will reduce costs in the system,” said Sousa. “These actions will reduce rates in Ontario.”
It is part of the government pledge to crack down on fraud, providing insurance companies with a savings from fraudulent claims to be returned to drivers through the targeted 15 per cent premium reductions set for 2015.
The policy has drawn flak from insurance companies who say it is cutting into their bottom line.
Queen’s Park ordered insurance companies to cut auto rates last spring, part of a deal with the New Democratic Party to pass last year’s budget.
Sousa said he would also consider creating a new 'fraud squad' – a special group of investigators and prosecutors to go after fraudsters.
