Ontario auto regulations meet insurer approval

After more than six months, Ontario has finally put auto insurance regulations on the books in response to Bill-198. The changes were as anticipated and met with insurer approval as a means to address rising accident benefits (AB) costs.Among the changes is a pre-approved framework for minor injury treatment, a code of conduct for paralegals and the creation of an Auto Insurance Theft and Fraud task force. It also bans cash settlement of AB claims within 52 weeks of the claim, reduces the deadline for notifying an insurer of an AB claim to seven days, and allows insurers to take statements under oath from claimants.However, the government plans to go a step further, with the Minister of Finance set to release a “white paper” on other changes to auto insurance, which could include tort reform, capping what health care providers can charge, and premium caps as of January 2004. A review of underwriting rules will also be conducted.The Insurance Bureau of Canada welcomed the regulations, and changes expected to follow in the white paper. “The changes coming into effect today are an important first step in controlling costs and stabilizing rates for Ontario’s insurance consumers,” says IBC Ontario region vice president Mark Yakabuski. “If the government implements further comprehensive changes to control rising health care expenses and the cost of lawsuits, as the government’s white paper is expected to propose, it is possible that consumers could see a significant reduction in average premiums in the months to come,”In response to the regulations, The Co-operators president and CEO Kathy Bardswick says insurers will be able to more accurately predict AB costs, and rates should stabilize or possibly decrease, as a result of the regulations.