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July 2003

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Eves government takes action to control auto insurance costs

   

    CHARLOTTETOWN, PE, July 10 /CNW/ - Ernie Eves, Ontario's Premier, released the government's white paper today and called for public input on how to address rising automobile insurance premiums. Eves also shared the white paper with his fellow premiers at the Annual Premiers' Conference in Charlottetown.

    "All drivers are hit in the pocketbook when auto insurance premiums increase," Eves said. "We will take measures to restore rate stability and we will undertake any action necessary - including capping, freezing or rolling back rates - to ensure that drivers see the impact of these changes on their premiums."

    The white paper, Automobile Insurance Affordability Plan for Ontario: Next Steps, proposes several new measures to keep drivers' premiums down. It follows the government's announcement last week of new regulations aimed at addressing costs pressures, fraud and abuse, while enhancing access to the comprehensive benefit package available to auto accident victims.

 

    The government is inviting public comment on key initiatives designed to contain the rising cost of lawsuits while improving access to needed benefits -including:

 

    -  amending the threshold at which an injured person can sue for pain and suffering to focus on severe physical, rather than mental or

       psychological injuries;

    -  expanding an injured person's right to sue for excess health care expenses;

    -  eliminating the deductible for pain and suffering awards over

       $100,000; and -  providing protection for persons who may be sued as a result of an automobile accident, even though they were not present at the accident.

 

    The white paper also proposes improved interprovincial collaboration in such areas as data sharing, addressing theft and fraud and exploring the establishment of national standard practices in the auto insurance industry.

    "I am looking forward to working with my fellow premiers to deal with the rising costs of claims and lawsuits and make auto insurance fair and affordable across the country," Eves said.

    Commissioner of Auto Insurance Rob Sampson, Ted Chudleigh, Parliamentary Assistant to the Finance Minister and MPP Wayne Wettlaufer will review public input on the white paper and report to Finance Minister Janet Ecker by October 2003.

    Automobile Insurance Affordability Plan for Ontario: Next Steps is

available at www.fin.gov.on.ca, the Ministry of Finance website, by clicking on the Consultations button. Printed copies are also available from Publications Ontario.

    Interested members of the public are asked to submit written comments by September 15, 2003 to:

 

                     Auto Insurance Review Committee

                            Frost Building South

                          7 Queen's Park Crescent,

                             Toronto ON M7A 1Y7

 

 

Reuters.com