November 5, 2018 13:30
Photo : Freepik
Last month, two members of Ontario have presented the bills of parliamentary initiative designed to prevent automobile insurance companies to impose upon the drivers of the higher premiums, depending on their place of residence.
Projects of law were presented on 16 October by the conservative mp Parm Gill of Milton, Ontario, and by the spokesman of the New democratic party (NDP) in the field of motor insurance, Gurratan Singh of Brampton-Is.
Bill Gill aims to amend the 2003 Law on the stabilization of car insurance rates by cancelling the newsletter-01/05, which defines the factors to be included in the systems of classification of the risk of the insurers under this act. It also aims to change the Regulation 664 of the insurance Law to prohibit insurers from using zip codes or telephone codes in the classification system of the risk of a company.
Prevent that Torontonians pay the most
The bill of Singh seeks to amend the insurance Act to prevent the residents of the Greater Toronto area to pay higher rates for auto insurance are based only on the municipality or the region in which they reside. The amendment would require the superintendent of financial services to refuse to approve the systems of risk classification if the system takes into account geographic regions, or if it does not consider the Greater Toronto area as a single geographic region. The amendment also prohibits insurers to conclude contracts of insurance if the rates are determined on the basis of such a risk classification system.
Determine the potential impact
Pete Karageorgos, director of consumer relations and industry of Ontario with the insurance Bureau of Canada (IBC), said that the industry association was consulting at present, the members and the government to determine the potential impact of the proposed law.
“In general, many of the bills of the mps do not have the force of law. Since this is a bill from a member, it is possible that the government takes back or cover it with something else. “
Geography, he stressed, is only one factor among other factors that insurance companies may take into account when determining premiums. The use of an insurance based on the use of, or the use of telematics to determine the premium for a customer is only an area in which insurers would like to change, if necessary. “Everyone wants to be able to do that. Unfortunately, the government has not updated the regulations to allow this type of innovation. “Currently, he says that telematics can be used to offer discounts, but not for setting premiums in Ontario.
To update the regulations
“There are a lot of regulations to be updated. She is bland. It must be acknowledged that some things need to change, ” he adds.
“We will wait to see, in the future, the impact of these bills. I think the overview and the discussion broader, and more important, relate to the manner in which this new government is going to reform itself, or the changes it will bring to make automobile insurance more affordable. “