Tip of The Month:
Ontario Brokers Urge Legislators to Pass
Bill 171 to Lower Rates and Help Consumers
(April 28, 2014,Toronto, Ontario) Ontario brokers will visit Queen’s Park
today to deliver a clear message to Members of Provincial Parliament (MPPs): pass Bill 171 before the election as soon as possible.
Bill 171, the Fighting Fraud and Reducing Automobile Insurance Rates Act, 2014, was introduced on March 4, 2014. It implements important parts of the Auto Insurance Anti-Fraud Task Force Report. If it does not pass there will be no way for Ontario to deliver the promised 15% average rate reduction by August 2015.
“Consumers need this bill passed if there is going to be any chance of getting rates down responsibly,” said IBAO 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 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.
The Anti-Fraud Task Force report estimated that fraud costs Ontario drivers as much as $1.6 billion every year. “IBAO is here today on behalf of the six million policy holders our brokers represent province-wide to urge MPPs to work together to get Bill 171 passed,” added Carroll. “The faster fraud can be combated, the faster premiums can be lowered.”