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WATCH: Insurance fraud crackdown announced

Liberals say new legislation will help cut your car insurance rates by an average of 15 per cent by 2015

The Liberals say they're on track to cut car insurance rates by an average of 15 per cent by 2015.

And they say how they'll do that is by introducing legislation that would tackle fraud saving the industry - and then you-  money.

Finance Minister Charles Sousa says they would focus on a few areas, such as making reducing the time your car can be impounded. Right now it's 60 days.

Sousa also calls out medical clinics who take advantage of those who were injured in an accident, filing fraudulent claims.

The province also wants to speed up the claims process by switching its oversight body.  Sousa says that will save the system money.

The province also wants to move forward with regulation of the towing industry and setting up a special investigation unit on fraud of all sorts.

While Ralph Palumbo of the Insurance Bureau of Canada is all for it, he says he realizes this won't get rid of fraud all together.

Palumbo reveals fraud costs the industry up to $1.6 billion a year.

Meantime, critics say the last time changes were made to the auto insurance industry in 2010, drivers didn't see any savings.

Progressive Conservative MPP Jeff Yurek says good drivers see rates going up, but bad drivers are seeing them shrink. He claims that's because insurance companies needed to find a way to reduce average rates, so they're reducing things for people who pay more for insurance anyways.

NDP MPP Jagmeet Singh calls the Liberals move a good headline, but he wants to see something concrete when it comes to shrinking rates by 15 per cent.

 

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  • 24
  1. Frankie posted on 03/04/2014 09:15 AM
    More distractions from this corrupt and inept gov't, forcing their way into private business rather than taking care of the disasters they've created. Until voters see through this sham they'll keep retaining power.
  2. Harold posted on 03/04/2014 10:24 AM
    Yay! Insurance rates will drop 15% .... in the future....

    These Liberals wouldn't lie to us.... would they?
    1. john posted on 03/04/2014 10:30 AM
      @Harold liberals are lying scum bags dont hold your breath .u might die before it happens .
    2. Nanowit posted on 03/04/2014 01:50 PM
      @john Hold your breath until 2015, hmm, yep you will be dead.
  3. john posted on 03/04/2014 10:38 AM
    sounds like the liberals are kissing ass to get votes ( whats new ?) the day the librals will do this is when hell freezes over, leafs win the cup , heaven overheats , thay get charged in the gas power plaint scandal . the liberals pay back the money for the power plaint , Orange , i could go on for days with this one . but i dont have the time .
  4. Angry Bill posted on 03/04/2014 10:48 AM
    Is no one noticing that the insurance rates have gone up in preparation for them "going down"? At the end of the day, the net result will be that rates in general have increased. It's all a shell game.

    Really, no one is noticing or talking about this? They're reporting a 15% reduction at face value as if it were truth?
    1. AC posted on 03/04/2014 11:05 AM
      @Angry Bill kind of sounds like Ford saying he's lowering our taxes but doesn't want to talk about our taxes were raised for Scarb subway. just a shell game
    2. Bill posted on 03/04/2014 12:30 PM
      @Angry Bill Yes I have. As I posted elsewhere on this site, I just got my auto insurance renewal and it is up 12.7% from last year.
    3. Nanowit posted on 03/04/2014 01:55 PM
      @Bill Insurance companies will NEVER lose money. Also note that the article says that new legislation will help the companies to reduce their rates. Catching fraudsters will never be worth 15%. Will the legislation cap payouts? That could have a major effect.
    4. dama posted on 03/04/2014 02:05 PM
      @AC You are a died hard Ford hater.. you seemed to be able to equate any annoucement of any kind with Rob Ford.. give it a rest...

      We knew what Rob Ford did and didn't do and cast your NO vote on Oct 27/2014, your rant is not worth any salt..
  5. Jerry posted on 03/04/2014 11:03 AM
    why don't i ever hear about conservatives trying lower gas prices, car insurance rates or something that helps the everyday person? that's what the voter wants.
    we just hear they want to lower corporate taxes and the corporations will solve all our problems if we do that. not a good solution for most everyday voters
    1. Angry Bill posted on 03/04/2014 11:22 AM
      @Jerry It would be difficult for the conservatives (or any government) to do so. All the years the libs where in power, they did nothing either. The reason for that is, governments need to let the free market dictate prices as much as possible. Artificially attempting to control gas price by the government wouldn't end well, economically speaking. Communist and socialist countries do that regularly, and their economies are hardly stellar examples of what we should be striving towards. All the government could do is lower the tax a bit on gas.. and that means less money for them, which they would have to make up for elsewhere. We'd only pay more for something else. This certainly isn't the big bad conservatives screwing us at the gas pumps. If it is, then the libs are just as bad. They did the same thing when they were in power.

      I hate gas prices, too. I really hate the big oil cartels that regularly bend us over a barrel every day. This is why as soon as electric cars fall into my price range, I'm buying one to do my part to screw the oil companies. We all should. That would definitely send a message.
    2. john posted on 03/04/2014 11:37 AM
      @Angry Bill i walk by a insurance company every day going to work . this like giving and insurance , mto . transit , parking enforcement ,the car registration the finger .
    3. Frankie posted on 03/04/2014 11:50 AM
      @Jerry The last time the Liberals tried this was at the fed level in the 70's with the National Energy Policy. Alberta almost separated from Canada over it, a typical disastrous gov't policy that failed dismally.
    4. Jerrt posted on 03/04/2014 12:10 PM
      @Frankie the good old days the 70's.
      bell bottom pants, saturday night fever, boogie!, PET as prime minister. Canada respected around the globe. i had more hair. sniffle! you just brought a tear to my eye. sniffle!
    5. Jim posted on 03/04/2014 12:33 PM
      @Jerry Jerry, I suggest you study economics before you criticize tax policy. First of corporations exist only on paper. Ultimately they are made up of people. When their taxes are lower they have more more money to spend on equipment, hiring, research, etc. All of which add to the economy, not reduce it like taxes do. This also helps create more jobs. Second, people say corporations keep that money as profit. Higher profits mean higher stock prices. Stocks which make up pension funds and R.R.S.P.'s. So that benefits the average worker. Yes, they undoubtedly will keep some. But guess what, some is paid out in dividends. So more money in people's pocket and more money in pension funds and R.R.S.P.'s.

      So despite what the Lefties tell everyone, profit isn't a dirty word and corporations aren't some giant cash sucking organism.
    6. Jerry posted on 03/04/2014 04:03 PM
      @Jim conservatives always cozy up to big business because they line their pockets. I own stock also Jim just so you know. Times are different not as cut and dry as you state. i'm old enough to remember when the middle class was in the middle. now wage inequality is out of control Big business is just sitting on billions and billions after having received generous perks. they outsource for higher profits at the expense of the very people they are getting tax breaks from. we don't make anything in this freakin country anymore. i'm 54 i used to be able to buy a t-shirt made in Canada. as usual when cuts in government are made it's always always the lower class getting hit because they are an easy target. big business will fight back.
      i don't disagree with your points but its swaying too much on the rich and powerful
      banks never loose, big oil never looses
  6. Bill posted on 03/04/2014 12:27 PM
    Sure they will. I just got my automobile insurance renewal. It's up 12.7% from last year. This is with no changes. Same 2 drivers (Myself and my wife) Same 2 vehicles. No claims. No tickets.
  7. dama posted on 03/04/2014 02:20 PM
    Same old shit, all talk and no REAL reduction.. legislation is only delaying the 15% reduction and will suit the insurnace companies more than drivers.. and this is coming from a minister that was saved by Dalton by cancelling the billion dollars gas plants..

    Any voters who will re-vote the Liberals again in the spring election richly deserves to be S C R E W E D hard.
    1. john posted on 03/04/2014 02:50 PM
      @dama agreed . sadly we all suff for that not just the dickheads who are stupid enough to vote for them .
  8. Ken posted on 03/04/2014 02:54 PM
    12 comments and not a single one about auto insurance fraud. Interesting...

    I for one, have recently had a pickup stolen out of my shed. I have learned there is a huge insurance fraud business being conducted on a local reserve.

    The truck is sitting at a towing company on the reserve, waiting to be found officially, racking up towing, impound, and storage charges. Eventually those charges will be paid by the insurance company, or the truck will be turned over to the towing company to recoup charges. Then the truck is sold, perfectly legal, by the towing company, and the money is split between them and the person who stole it. Reserve cops likely get a little too.

    The morning after it was stole, the reserve cops found it along with several other vehicles all parked neatly on the road in the middle of the reserve.

    The reserve is effectively another country, and is responsible for as much as 90% of the vehicle theft in the niagara, hamilton, brantford areas. Thats a fact, look it up.
    1. Frankie posted on 03/04/2014 03:11 PM
      @Ken There were posts few months ago regarding auto insurance premiums being higher near reserves for this very reason. If you have crime in western countries you have redress in the courts. If you're a victim of crime by natives, even if you win a court case you cannot step onto their territory to obtain your goods or settlement. Believe this is a supreme court of Canada ruling.

      Of course we also know that, thanks to McGuinty, even if you're not standing on native land, and you are beaten almost to death by a native, the OPP will not intervene, merely watch.

      We create an untouchable class of people because legislators feel bad for past injustices.

      Absolutely insane!
  9. frank posted on 03/04/2014 03:58 PM
    It would be easier to hold gov. to accont if the media would pounce when info falls out, such as in the last budget. Didn't it show that collision costs in Ontario towered above other provinces, suggesting massive insurance fraud?
  10. Dublin25 posted on 03/04/2014 04:25 PM
    Rather than the government throwing money at this problem, we should be looking at the insurers that pay/settle on obvious fraudulent claims because it's easier/faster than doing their own investigations. This is not just a problem with auto insurance but also disability cases as well. Insurers cut investigation budgets over the years and now they are wringing their hands wondering why the claim payouts have gone through the roof. I don't mind paying a fair premium, as long as they are weeding out and charging the fraudsters.
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