As part of its budget roll-out, the Ontario government has announced its plans to establish a serious fraud office with a special focus on auto insurance fraud.

Ontario Finance Minister Charles Sousa also announced that the province is prepared to amend the Insurance Act “to ensure that consumers are provided with complete information about the history of used vehicles.” Insurers would be required to provide claims and repair history to motor vehicle dealers for disclosure to prospective dealers. 

The IBC is already appaluding the move. ”Auto insurance fraud continues to be a serious problem and has plagued the Ontario auto insurance system costing as much as $1.6 billion a year,” said Kim Donaldson, Vice-President, Ontario, Insurance Bureau of Canada.  “We are thrilled to see the government make the fight against fraud a priority.”

The government will also enable new insurance products for ride-sharing services to be approved faster, even if interim approvals are necessary.  The province and the Financial Services Commission of Ontario (FSCO) say they will also work with insurers to develop legislative and regulatory changes necessary to integrate the sharing economy into the auto insurance system.

-via CITB

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