revrnd
07-10-2003, 11:05 AM
Cut rates, auto insurers told
Eves set to announce second phase of changes today
Sources say savings could permit 10% premium drop
JAMES DAW
BUSINESS COLUMNIST
Premier Ernie Eves will announce further changes to auto insurance today to ensure more savings are passed on to Ontario motorists.
Sources say phase two of his government's initiatives could add enough savings to permit premium cuts of more than 10 per cent.
It's also expected that Eves will signal that his government is prepared to force insurers to cut rates if they do not move voluntarily. Eves will unveil his plans during a premiers' conference in Charlottetown.
His government plans to:
Bring down the cost of treating accident victims by setting limits on payments to health practitioners.
Their compensation would be closer to what government health insurance plans and the Workplace Safety and Insurance Board now pay. Auto insurers say health practitioners sometimes bill five times as much as the WSIB pays for the same sort of therapies.
Tighten restrictions on the right of victims of minor sprains, strains and pains to sue in court for general damages.
As reported earlier by the Star, the government is likely to require a deduction of at least $25,000 from all pain-and-suffering awards — up from $15,000. But Eves will also propose a tighter definition of what qualifies as a serious and permanent injury, the threshold for being allowed to sue for economic losses and compensation for pain and suffering.
Propose a discussion about whether motorists who have extended health and disability insurance should also pay again for such coverage through auto insurance.
Those people must exhaust their extended health care and disability benefits before claiming against their auto policy.
This could be a politically sensitive topic. Most employees have some form of group benefits, but those who do not tend to have lower incomes.
At the premiers' conference, Eves will also propose more information-sharing and more standard benefits for all public and private auto insurance plans.
Currently, there is a wide range of basic benefits paid regardless of fault across the country.
These are topped by the right to sue in provinces other than Quebec or Manitoba.
Eves announced a long list of regulatory changes last week directed at controlling costs by more than $400 million a year and protecting consumers.
He committed to release a white paper on his government's second phase of plans before today, but nothing was released yesterday.
Sources say his new proposals could raise the tally of savings to more than $700 million a year, compared with a current annual premium bill of about $7 billion.
Meanwhile, the Official Opposition will try to trump Eves with a commitment to cut auto insurance rates within 90 days if the Liberals form the next government.
Leader Dalton McGuinty has scheduled a news conference for 10 a.m. at Queen's Park. His speech will be followed there by the first of 17 public hearings the party plans to hold across the province.
Sources expect the Liberal and Tory plans to be substantially similar. So the electorate may only get to decide who will implement the changes.
Liberal sources say their white paper will talk about treatment protocols and price controls, as well as the $270 million spent on assessments.
Industry sources suspect the Liberals will propose to eliminate so-called Designated Assessment Centres, where injury victims now go when an insurer refuses to pay for further therapy.
Many victims of injury are suspicious that these government-approved centres lack independence.
Insurers complain the centres are too costly, and that advocates of dubious claims use the threat of a Designated Assessment Centre as a strategic bargaining chip to extract cash settlements.
The Liberals are also expected to propose more choice in the level of benefits provided under auto policies.
For example, motorists might be able to get savings by giving up the right to sue for a pain-and-suffering award, or to pay extra for the right to sue.
I wonder if any of this will rub off on to the snowmobile insurance business?
Eves set to announce second phase of changes today
Sources say savings could permit 10% premium drop
JAMES DAW
BUSINESS COLUMNIST
Premier Ernie Eves will announce further changes to auto insurance today to ensure more savings are passed on to Ontario motorists.
Sources say phase two of his government's initiatives could add enough savings to permit premium cuts of more than 10 per cent.
It's also expected that Eves will signal that his government is prepared to force insurers to cut rates if they do not move voluntarily. Eves will unveil his plans during a premiers' conference in Charlottetown.
His government plans to:
Bring down the cost of treating accident victims by setting limits on payments to health practitioners.
Their compensation would be closer to what government health insurance plans and the Workplace Safety and Insurance Board now pay. Auto insurers say health practitioners sometimes bill five times as much as the WSIB pays for the same sort of therapies.
Tighten restrictions on the right of victims of minor sprains, strains and pains to sue in court for general damages.
As reported earlier by the Star, the government is likely to require a deduction of at least $25,000 from all pain-and-suffering awards — up from $15,000. But Eves will also propose a tighter definition of what qualifies as a serious and permanent injury, the threshold for being allowed to sue for economic losses and compensation for pain and suffering.
Propose a discussion about whether motorists who have extended health and disability insurance should also pay again for such coverage through auto insurance.
Those people must exhaust their extended health care and disability benefits before claiming against their auto policy.
This could be a politically sensitive topic. Most employees have some form of group benefits, but those who do not tend to have lower incomes.
At the premiers' conference, Eves will also propose more information-sharing and more standard benefits for all public and private auto insurance plans.
Currently, there is a wide range of basic benefits paid regardless of fault across the country.
These are topped by the right to sue in provinces other than Quebec or Manitoba.
Eves announced a long list of regulatory changes last week directed at controlling costs by more than $400 million a year and protecting consumers.
He committed to release a white paper on his government's second phase of plans before today, but nothing was released yesterday.
Sources say his new proposals could raise the tally of savings to more than $700 million a year, compared with a current annual premium bill of about $7 billion.
Meanwhile, the Official Opposition will try to trump Eves with a commitment to cut auto insurance rates within 90 days if the Liberals form the next government.
Leader Dalton McGuinty has scheduled a news conference for 10 a.m. at Queen's Park. His speech will be followed there by the first of 17 public hearings the party plans to hold across the province.
Sources expect the Liberal and Tory plans to be substantially similar. So the electorate may only get to decide who will implement the changes.
Liberal sources say their white paper will talk about treatment protocols and price controls, as well as the $270 million spent on assessments.
Industry sources suspect the Liberals will propose to eliminate so-called Designated Assessment Centres, where injury victims now go when an insurer refuses to pay for further therapy.
Many victims of injury are suspicious that these government-approved centres lack independence.
Insurers complain the centres are too costly, and that advocates of dubious claims use the threat of a Designated Assessment Centre as a strategic bargaining chip to extract cash settlements.
The Liberals are also expected to propose more choice in the level of benefits provided under auto policies.
For example, motorists might be able to get savings by giving up the right to sue for a pain-and-suffering award, or to pay extra for the right to sue.
I wonder if any of this will rub off on to the snowmobile insurance business?