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April 25 - May 2, 2004 |
Insurance Companies Untrustworthy
Provincial Undersecretary of Finance Mike Colle prepares a Drivers' Bill of Rights
By Niccolò Marras
Originally Published: 2004-04-04
The huge profits posted in 2003 by insurance companies drew heavy political flak in Ontario. The first attack came from the New Democratic Party of Ontario, and Liberal Mike Colle followed suit in an interview with our publications.
The results, published by the Insurance Bureau of Canada, highlighted the fact that the over 200 Canadian companies closed the latest fiscal year with net profits for $2.63 billion, or about $13 million each. Despite these results, the companies complained of gaining too little, less than banks.
Such remarks further irritated consumers, many of whom had seen their policies doubled in cost. "People do not trust insurance companies, and neither does the government," says Mike Colle, Provincial undersecretary of Finance and in charge of the matter. "Now the companies must walk the talk, factually proving their claims."
No more words, then. In order to make sure that the rights and obligations of both motorists and insurers are balanced, the Liberal government of Ontario is preparing a "Drivers' Bill of Rights", protecting policy holders from "the lies and abuses of some companies".
What is most remarkable about this proposal is that it comes from the Government itself, rather than from an interest group. This shows that companies did go too far.
Other heavy comments come from MPP Peter Kormos, NDP Auto Insurance Critic. "Insurance companies cried poor, but now they're laughing all the way to the bank," Kormos said. "Those greedy, dishonest companies should roll out a 'Rip-off Rebate' and pay back the drivers and accident victims they scammed en route to astronomical profits."
"These sky-high profits," continued Kormos, "came at a time when insurance companies said they were going broke and had no choice but to wallop consumers and business with double-digit rate increases and slash benefits for accident victims."
Over the past years, some companies faced crises because they had invested on the stock market, unlike in previous years. When the stock market bubble burst, the companies lost a lot of money. They blamed the 9/11 attacks, but in reality they made some wrong choices and then tried to get drivers to pay for them.
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