GRIT
INSURANCE PLAN 'UNREALISTIC' |
A LIBERAL promise to
immediately reduce insurance rates by 10% is tangled in a web of red tape, a
New Democrat critic charged. |
|
A Sun Media story yesterday
revealed that a delay in processing rate decrease applications will cost
motorists about $575 million in insurance premiums. |
|
"I think the promise was
unrealistic to begin with," said New Democrat Michael Prue, pointing out
there was no way the provincial government could effect that kind of reduction
in a short time frame. |
|
"To compound that, they
didn't hire sufficient staff to process the applications," Prue added. |
|
The government has processed
55% of applications from large insurance companies, but the 45% of drivers who
are insured by smaller companies may not see their rates go down until October
2005, Prue said. |
|
COMPLEX APPLICATIONS |
|
A spokesman for Finance
Minister Greg Sorbara blamed the delay on the complex nature of the rate
reduction applications and the fact that all companies had to file on the same
day. |
|
'MOVING QUICKLY' |
|
"Insurance companies filed
on Jan. 23 with new rates and we have been moving quickly to bring in those new
rates so that motorists would see some reductions," said Diane Flanagan. |
|
"Some of the filings were
more complicated than the Financial Services Commission of Ontario
expected," she said. "As soon as they realized that more companies
were delivering more complicated rate filings ... they did bring in increased
staff," she said. |
|
All applications will be
approved by July 15 and motorists should start to see reductions in their rates
after that, she said, adding some insurance company rates are still showing the
effects of rate hikes approved by the previous Tory government. |
|
"As of March 31, 55% of
the market had been approved. At that time the average rate decreased was
10.15%. |
"Motorists started to see
decreases as of April 15," she said.
|
GRIT
INSURANCE PLAN 'UNREALISTIC' |
|
|
|
A LIBERAL promise to
immediately reduce insurance rates by 10% is tangled in a web of red tape, a
New Democrat critic charged. |
|
A Sun Media story yesterday
revealed that a delay in processing rate decrease applications will cost
motorists about $575 million in insurance premiums. |
|
"I think the promise was
unrealistic to begin with," said New Democrat Michael Prue, pointing out
there was no way the provincial government could effect that kind of reduction
in a short time frame. |
|
"To compound that, they
didn't hire sufficient staff to process the applications," Prue added. |
|
The government has processed
55% of applications from large insurance companies, but the 45% of drivers who
are insured by smaller companies may not see their rates go down until October
2005, Prue said. |
|
COMPLEX APPLICATIONS |
|
A spokesman for Finance
Minister Greg Sorbara blamed the delay on the complex nature of the rate
reduction applications and the fact that all companies had to file on the same
day. |
|
'MOVING QUICKLY' |
|
"Insurance companies filed
on Jan. 23 with new rates and we have been moving quickly to bring in those new
rates so that motorists would see some reductions," said Diane Flanagan. |
|
"Some of the filings were
more complicated than the Financial Services Commission of Ontario
expected," she said. "As soon as they realized that more companies
were delivering more complicated rate filings ... they did bring in increased
staff," she said. |
|
All applications will be
approved by July 15 and motorists should start to see reductions in their rates
after that, she said, adding some insurance company rates are still showing the
effects of rate hikes approved by the previous Tory government. |
|
"As of March 31, 55% of
the market had been approved. At that time the average rate decreased was
10.15%. |
"Motorists started to see
decreases as of April 15," she said.
|
|
|
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|
