Canadian lawmakers pass some laws concerning automobile insurance in order to keep rates low for those drivers with a good driving record. The most recent law has focused on the amount that drivers must pay for premiums. The new law states that the amount charged for premiums must get lowered by 15% over the years.
Statistic that supports new law
Roughly 1/5 of the insurance companies in Ontario had chosen to lower the price being charged for premiums by 10%, during the course of the previous year. This showed the insurer’s readiness to undertake the requested action.
Argument made by those that opposed the law’s passage
The rule serves as no more than a one-time fix. It fails to provide drivers with the chance to enjoy ongoing improvements. By providing insurers with 2 years to make changes, the new law suggests that no new alterations will be needed for at least 2 years.
Response from Insurance Bureau of Canada
Bureau welcomed law’s passage. Members of Bureau saw new rule as a way to prevent fraud. In addition, the insurance companies did not have to carry out lots of paperwork, in order to follow the new rule. However, consulting with a personal injury lawyer in Sudbury becomes imperative.
Added parts to the new law
One part deals exclusively with the resolution of disputes between drivers. In the past such differences of opinion were settled at a dispute resolution center. Addition to new ruling calls for utilization of a tribunal, one that is run by the Attorney General’s office.
The size of requests for compensation are to be controlled by placing more careful oversight on the billing practices at the various health clinics. Injured victims go to such clinics immediately after getting involved in an accident.
Increased restrictions on where a damaged car gets towed and stored. The car’s owner must be given an opportunity to decide on the towing company. One part of recent ruling relates to winter tires. It indicates the possible adoption of a law that makes winter tires mandatory. Passage of such a ruling could reduce the number of accidents and lead to a lowering of premiums.
This provision was included in an effort to force the contemplation of other improvements. In that way, it seeks to recognize one of the arguments that has been made against the new law.
Why does the government of Ontario tell insurers what to charge?
The government sells car insurance in Ontario. The government declares how a dispute between 2 drivers must be settled. A government office receives all the paperwork from those that have been injured in an automobile accident. The government arranges for payment of compensation to those that become victims at the time of a car accident.