Bill 171 and You
With sky high insurance rates and the current squeeze we feel with the economy, any help we can get in terms of tax breaks or subsidies are a welcomed relief." Our elected officials create policies and legislation in the effort to appease all those involved and as with most things, everything is up for debate." One of the more recent proposals that have created a bit of a stir is that of Bill 171. In an attempt to reduce automobile insurance rates in Ontario, in 2013 the Auto Insurance Cost and Rate Reduction Strategy was formulated." In it, an estimated fifteen percent reduction of insurance rates is slated to happen over two years." Below are a few ways that they will attempt to reach this goal.
- Continuing efforts to reduce fraud
- Requiring that insurers re-file insurance rates
- Help guide and follow procedures to ensure that Ontarians receive the benefits from the cost savings
- Sustaining the requirement for insurers to offer safe driving discounts
- Initiating a province wide system to review towing procedures, storage and collision costs
- The new Bill reduces the PJI rate from five percent to a little over one percent with adjustments made quarterly." The aim is said to help reduce the cost of claims, but the Ontario Trial Lawyers Association (OTLA) who represent plaintiffs in the hearings, see it as another way for insurers to delay claims in order to benefit from retaining and investing their wealth.
- The Bill takes away the authority from arbitrators to penalize intentional delays that insurers may impose on claims.
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