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Ontario auto insurance industry goal is long term solutions

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Re: Victims of the insurance industry, by RhonaDesroches, April 3 (follows this article).

The letter in The Star today from the lobby group Fair Association of Victims for Accident Insurance Reform (FAIR) ignores the fact Ontario auto insurance system is broken and in need of real solutions.

When you have an extremely generous benefit system without all the controls necessary, it attracts questionable providers, in many cases personal injury lawyers, not-for-profit health care clinics, abusing the system.

And, of course, organized criminal fraud is also drawn to it.

Insurers pay an annual tax (a.k.a. levy) to OHIP of $142 million to treat injured motorists. What do these lawyers and health care clinics contribute?

This isn't a case, as FAIR suggests, of excessive greed by insurers. It is simply one of much needed co-operation.

The goal of the industry is a long-term solution, one that delivers affordable premiums for all drivers and fair benefits.

FAIR is quick to attack the insurers but where does FAIR stand on fraud, excessive legal fees that take money out of the hands of injured motorists and for-profit medical facilities that abuse the system?

Insurers contribute to the Ontario economy in both large cities and small towns. Every step your insurers take to reduce fraud and every new measure that is implemented that will get at the root cause of unnecessary and unwarranted costs will benefit all of us and ensure money goes to those who truly require med rehab services.

RALPH PALUMBO, VP Ontario, Insurance Bureau of Canada, Toronto

Source: The Windsor Star

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RhonaDesroches, The Windsor Star | Apr 03, 2013 | Last Updated: Apr 03, 2013 - 9:05 UTC

Re: Reform the insurance industry, letter by Ralph Palumbo, vice-president, Ontario, IBC, March 27, 2013

Mr. Palumbo attempts to convince the reader that the Insurance Bureau of Canada is trying to "fix" our broken auto insurance system and that we should trust the IBC position that a government monopoly is not the answer.

We are paying hundreds of millions for the CEOs and the bloated hierarchy that exists in the privately run system we have now and it isn't working - far too many accident victims do not have the funds necessary for recovery.

Those costs that are denied to legitimate accident victims are downloaded to the taxpayer through OHIP and social support systems.

Fair Association of Victims for Accident Insurance Reform would agree that Ontario pays the highest premiums for the lowest coverage but for different reasons - abuse of policyholders by their insurers who turn down legitimate claims that eventually have to be paid, excessive and costly assessments that are of poor quality, red tape created by insurers, legal backlogs caused by insurers themselves with wrongful denials and outdated regulations that the IBC have themselves lobbied to put in place and now propose to change again.

Accident victims deserve better than the system we now have. A system the IBC has helped create and a system they would like to keep.

RHONA DESROCHES, board chair, Fair Association of Victims for Accident Insurance Reform.

Source: The Windsor Star

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