Bill dies. David O. helps bring it back

NEWS RELEASE

DAVID ORAZIETTI, MPP

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Ontario Government Taking Steps to Reduce Costs and Protect Consumers

The Ontario Government has passed the Fighting Fraud and Reducing Automobile Insurance Rates Act, 2014, which will continue to fight fraud and abuse, reduce costs and uncertainty in the auto insurance system and protect more than nine million licensed drivers across the province, announced David Orazietti MPP and Minister of Government and Consumer Services.

“Our government is taking action to make auto insurance more affordable for Ontarians and ensure that their dealings with the towing industry are fair and transparent,” said Orazietti. “We are committed to reaching our target of a 15 percent average decrease in insurance rates for Ontario drivers, and I was disappointed to see the NDP not support these initiatives.”

With the passage of the bill, the province will strengthen consumer protection and help keep the auto insurance system fair, reliable and affordable by:

• Transforming Ontario's auto insurance dispute resolution system to help injured Ontario drivers have their disputed claims settled faster and get the benefits they require sooner
• Providing consumer protections specific to the towing and vehicle storage industries through measures that require tow and storage providers to make their rates available publicly; accept credit cards, and not insist on cash only; and provide an invoice, including an itemized list of the services provided and the total cost, before demanding or receiving payment
• Giving the province authority to change the current 60-day period that a vehicle can be stored after an accident, accruing charges, without notice to the owner where required

These changes will contribute to lower claim costs for insurers and more certainty in Ontario's auto insurance system, helping to reduce rates for drivers.

The Act is a combination of Bill 171, Fighting Fraud and Reducing Automobile Insurance Rates Act originally introduced on March 4, 2014 by the Ministry of Finance and Bill 189, Roadside Assistance Protection Act, 2014 originally introduced on April 15, 2014 by the Ministry of Consumer Services. Both pieces of legislation died on the Order Paper when the NDP forced the June election.

The Insurance Brokers Association of Ontario (IBAO) has vocalized their support for the province’s initiative.

“On behalf of the six million policy holder’s our brokers represent province-wide, IBAO is happy to see Bill 171 and 189 combine into one piece of legislation,” said IBAO CEO Randy Carroll.

“Since this process was delayed due to the election, we look forward to seeing it pass so implementation can get started as soon as possible. This is a good step towards further reductions in insurance costs by fighting fraud.”

Quick Facts

• In August 2013, the province announced its plan to reduce auto insurance rates for Ontario drivers by a target of 15 per cent on average within the next two years
• From August 2013 to August 2014, auto insurance rates dropped by an average of more than six percent
• So far, the province has taken action to address more than half of the 38 recommendations made by Ontario's Auto Insurance Anti-Fraud Task Force aimed at preventing fraud and helping to protect consumers, including key proposals for licensing health service providers that bill auto insurance companies directly, enhancing oversight of the towing industry and transforming the auto insurance dispute resolution system.

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