Insurance Bureau of Canada (IBC) applauds efforts announced Tuesday by the federal government to re-introduce comprehensive legislation to combat the serious problem of auto theft.

“Clearly, the federal government recognizes the many costs of auto theft,” says Rick Dubin, vp, investigations, IBC. “Not only does auto theft cost Canadians more than $1 billion every year, it also costs lives. The growing involvement of organized crime in auto theft is a threat to our safety and security.”

The legislation announced Tuesday increases the consequences of auto theft and targets the involvement of criminal organizations. It will empower Canada Border Services Agency to search containers at ports all across Canada, and to seize stolen vehicles meant for export. And it will make it a crime to tamper with vehicle identification numbers (VINs) and traffic in stolen auto parts.

The proposed legislation will also make auto theft a separate offence under the Criminal Code so that sentences are more appropriate for the severity of the crime. Presently, auto theft is considered a simple property offence.

In 2007, auto theft cost insurers $542 million, or $35 for each auto insurance policy. The number of thefts across Canada dropped by 9% in 2007, but recovery rates also continue to decline.

“The measures announced by the federal government today reflect a commitment to the safety and security of Canadians. I urge all MPs to support this legislation and pass it as soon as possible,” said Dubin.

Insurance Bureau of Canada is the national industry association representing Canada’s private home, car and business insurers.

IE