The Ontario government is calling for public input on how to address rising automobile insurance premiums.

A government white paper released Thursday, Automobile Insurance Affordability Plan for Ontario: Next Steps, proposes several new measures to keep drivers’ premiums from climbing.

It follows the government’s announcement last week of new regulations aimed at addressing costs pressures, fraud and abuse, while enhancing access to the comprehensive benefit package available to auto accident victims.

Ontario is inviting public comment on key initiatives designed to contain the rising cost of lawsuits while improving access to needed benefits — including:

  • amending the threshold at which an injured person can sue for pain and suffering to focus on severe physical, rather than mental or psychological injuries;
  • expanding an injured person’s right to sue for excess health care expenses;
  • eliminating the deductible for pain and suffering awards over $100,000; and
  • providing protection for persons who may be sued as a result of an automobile accident, even though they were not present at the accident.

The white paper also proposes improved interprovincial collaboration in such areas as data sharing, addressing theft and fraud and exploring the establishment of national standard practices in the auto insurance industry.

“I am looking forward to working with my fellow premiers to deal with the rising costs of claims and lawsuits and make auto insurance fair and affordable across the country,” Ontario premier Ernie Eves said in a statement.

The government has also announced that it is directing the Superintendent of Financial Services to conduct reviews of three major aspects of the auto insurance system to look for additional ways to reduce costs..

The Superintendent will review the Designated Assessment Centre system, existing and proposed fee schedules used by various health care providers treating auto accident victims, and rules used by insurers to ensure that insurers are not unfairly denying coverage to consumers

In addition, the government has directed the Superintendent of Financial Services to require insurers to refile their rates, where appropriate, in light of the savings from this action plan.

It says that if insurers do not respond immediately and appropriately by passing on savings to consumers, the government will take action, including measures directly targeting auto insurance premiums. These measures could include rate caps, rate freezes or rate roll-backs.

Commissioner of Auto Insurance Rob Sampson, Ted Chudleigh, Parliamentary Assistant to the Finance Minister and MPP Wayne Wettlaufer will review public input on the white paper and report to Finance Minister Janet Ecker by October 2003. Comments are due by September 15.