The policy platforms of three major parties regarding to auto insurance in Ontario.

The policy platforms of three major parties regarding to auto insurance in Ontario.

 

In my review I made an analysis of the article “What the Ontario Party Platforms say About Auto Insurance”  written by Willie Handler.

Willie Handler discussed the policy platforms of three major parties: the Liberals, the New Democratic Party   and Progress Conservatives regarding to auto insurance in Ontario.

LIBERALS

This writer analysed the following documents: the Spring Budget, “ Automobile Insurance Transparency and Accountability Report”, Bill 171,  an annual Automobile  Insurance Transparency and Accountability   Expert Reports.    The first one received a portion of  his criticism because it does not suggest any special initiative as how to decrease insurance rates 8 % lower  by August 2014 and 15% lower by August 2015.    The second one contains the prediction of increasing rates in the future if these reforms are not taken.

In contrast to the Spring Budget, Bill 171 contains several initiatives relating to barriers to rate reductions. The transformation of the dispute resolution system and elimination of fraud and abuse should be done by legislative amendments. This problem has to be resolved by the development of the fraud office. In addition, their two legislative initiatives relating to the regulation of the towing industry and storage-fee issues  did not proceed also.

The last mentioned document, the Expert Reports, includes several  initiatives and Wille Handler names them: “better claim management, more sophisticated pricing methods and improved fraud-prevention practises, usage-based insurance ” .

NEW DEMOCRATIC PARTY

The position  of the NDP relating the lower rates was based on pressure from the Liberal government in 2013 that promised to decrease them  by 15 %. Both parties had similar commitments regarding this issue with the two months difference in the deadline in 2015.

Further, Willie Handler criticized the idea of permanent rate-setting and with a right of consumers to provide their opinions in the rate-setting process, because for him it was not clear how these commitments would be implemented. The writer speculated about a mechanism for implementing these commitments.

PROGRESSIVE CONSERVATIVES

This political party has a distinguishable feature in comparison with the other two parties. It has an auto insurance action plan. It contains two actions similar to that of the Liberals: – to fight insurance fraud  and reform the dispute resolution system. At the same time, Progressive Conservatives suggest eliminating red tape and make auto insurers be responsible to customers. However, the plan of reforming the dispute resolution system has several limitations, as this system needs more reforms than their plan suggests and  partially resembles the previously existed DAC system.

The market prices would be more competitive and more discounts would be available without the red tape.

The Health Claims for the Auto Insurance electronic billing system would be helpful in fighting fraud as well as a special office of Crown Attorney.

The last suggestion is the  liability of the company’s senior insurance executives.

Valery Turyshev is a Paralegal student at Centennial College in Toronto studying professional communications with Omar Ha-Redeye.

Leave a Reply

Your email address will not be published. Required fields are marked *