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Ontario Clamping Down on Auto Insurance Fraud

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Ontario Clamping Down on Auto Insurance Fraud

McGuinty Government Helps Lower Costs and Increase Road Safety for Drivers

Ministry of Finance

Ontario continues to tackle auto insurance fraud, which will benefit drivers by helping to lower premiums, increase road safety and ensure people hurt in car accidents receive the treatments necessary to recover from their injuries.

In a Status Update delivered today, Ontario's Auto Insurance Anti-Fraud Task Force identifies a number of potential recommendations:

  • Oversight of health clinics' auto insurance business practices
  • Regulating the towing industry
  • Expanding investigative authority for the Financial Services Commission of Ontario (FSCO)
  • Mandatory disclosure by insurance companies about how they select and supervise their preferred service providers - including independent medical examinations; and
  • Developing a consumer engagement and education strategy.

The task force's work builds on a series of recent changes the government has made to help address auto insurance fraud, including:

  • Starting a pilot project using the Health Claims for Auto Insurance database to detect potential fraudulent activity
  • Introducing new rules to ensure that health care treatments are provided as invoiced
  • Issuing a guideline to prevent insurers from being invoiced for medical devices at a significantly higher than market rate; and
  • Requiring CEOs of auto insurers in Ontario to annually attest that their accident benefit cost controls are effective and that claimants are being treated fairly.

Under the McGuinty government, auto insurance rates have risen at a slower pace than inflation, and Ontario's accident benefits remain the most generous in Canada when compared to other provinces with similar auto insurance marketplaces.

Quick Facts

  • The Task Force will seek stakeholder feedback on its proposed recommendations before submitting a final report this fall.
  • Since 2003, the McGuinty government has continued to keep auto insurance affordable and available for all Ontarians. From 2004 to 2011, auto insurance rates increased 11.6 per cent in Ontario, while the Consumer Price Index rose 17.1 per cent.
  • From 2006 to 2010, accident benefits claims costs increased by 118 per cent, despite a reduction in the number of auto accidents, number of people injured in auto accidents, and the severity of injuries suffered over the same time period.

Additional Resources

Quotes

“Auto insurance fraud is a serious issue that affects all of Ontario's nine million drivers, so I thank the task force for its continued hard work and I look forward to receiving final recommendations in the fall. Our government continues to monitor and make changes to the system so that auto insurance remains affordable while providing people with optimal protection.”

Dwight Duncan

Minister of Finance

Media Contacts

  • For Media Inquiries only:

  • Kelsey Ingram

    Minister's Office

    kelsey.ingram@ontario.ca

    416-326-1409

  • Scott Blodgett

    Ministry of Finance

    scott.blodgett@ontario.ca

    416-325-0324

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