Sousa and company come out on the side of multi-billion-dollar insurance corporations again...

Anti-fraud bill a mirage

Ontario government’s latest auto insurance legislation doesn’t do what it’s supposed to do

BY ALAN SHANOFF ,TORONTO SUN

Ontario’s Bill 15 has a strange title.

The title, Fighting Fraud and Reducing Automobile Insurance Rates Act, 2014, is strange because this proposed legislation doesn’t refer to fraud anywhere in the body of the bill save in references to the title of the proposed legislation.

Then again why pass up the opportunity to propagandize?

Upon introduction of the bill earlier this month the Ministry of Finance announced, “Ontario is moving forward with its plan to help reduce auto insurance rates, by introducing legislation that would, if passed, protect the province’s nine million drivers and fight fraud in the auto insurance system.”

But there’s nothing in the bill that fights fraud in the insurance system.

Worse, there’s little in the bill that would protect drivers.

Bill 15 contains … provisions that will prejudice those injured in auto accidents.

Currently arbitrators have the power to penalize insurers who act unreasonably in withholding or delaying benefits.

They can award a lump sum of up to 50% of the amount withheld or delayed along with interest at the rate of 2% compounded monthly.

Bill 15 eliminates that power.

In addition, Bill 15 would reduce the amount of interest insurers are required to pay on money owed to accident victims.

That surely won’t serve to speed up settlements, with insurers given an incentive to delay payments.

Let’s not kid anybody.

Bill 15 is mainly about saving money for insurance companies to help them reduce premiums, so as to assist them in achieving the government’s promised 15% rate reduction.

To read Alan Shanoff’s full discussion, go to: Anti-fraud bill a mirage, Toronto Sun News Network.