When, Oh When are governments going to do something about out-of-control insurance companies?...

We need insurance reform: The sorry state of Ontario’s auto insurance should be a major election issue


BY ALAN SHANOFF ,TORONTO SUN

[Alan Shanoff is a lawyer, having been called to the Bar in 1978. He has worked in a large Bay Street firm and as a sole practitioner. He was Sun Media's lawyer from 1991 until 2007. He currently teaches media law at Humber College.]

There’s no shortage of issues for Ontario’s June 12 election: Out of control hydro prices, the sad state of the economy, pension reform, transit funding and, of course, all the Liberal scandals.

Once again, the issue of auto insurance reform is likely to be left at the curb with no party championing those injured in auto accidents.

It’s a pity as the state of Ontario’s auto insurance cries out for reforms to protect accident victims.

1. Since the reforms of 2010, approximately 80% of all accident victims have been slotted into a new minor injury category in which they are limited to a maximum of $3,500 (and in many cases, $2,200) in medical/rehabilitation benefits.

According to the Ontario Rehab Alliance, an association representing over 4,000 health care professionals, the minor injury category was designed to cover those with simple, uncomplicated whiplash-type injuries, but insurance company adjusters are placing many with joint dislocations and tears to tendons and ligaments into this category, resulting in denials of treatment. ~ More.

Shanoff has listed eight examples of how insurance companies have either been 'gifted' by the Ontario government--primarily Dalton McGuinty and Kathleen Wynne--or arbitrarily changed the rules, but why? To hear the auto insurance companies cry poor mouth you'd think they were on the brink of bankruptcy. 'Not so,' says Shanoff, i.e.:

8. In 2012, the latest year for which figures are available, Ontario’s car insurers collected $3.78 billion in accident benefits premiums but paid out only $1.67 billion in claims and adjustment expenses.

These numbers come from the General Insurance Statistical Agency, the non-profit agency that tracks information on behalf of provincial insurance regulators. That means insurers have a gross profit margin of 56% on accident benefits coverage, not including the investment income earned on prepaid premiums. That’s not surprising since they are paying out a maximum of $3,500 in accident benefits for most injured in auto accidents.

To read Shanoff's full opinion, go to "We need insurance reform," Toronto Sun.

What is it about Insurance companies that seem to have most governments afraid to tackle them in any meaningful way? Indeed, at times one would think governments were the facilitators in ripping off not only consumers, but also victims. 

In the 2013 budget, Kathleen Wynne and Fiance Minister Charles Sousa agreed to call for a reduction of 15% in auto insurance premiums, but put it off until 2015 to implement it. Why? Moreover, auto insurance is n't even on the list of campaign promises by either the Conservatives or the NDP. Why?

Do yourself a favour and demand answers from your riding candidates. 

The whole Insurance company rip-off mess (including auto insurance) stinks!

Tell your local candidate to 'Stop the Bull'!