The Ontario government on Wednesday announced changes to the provinces’s automobile insurance system to soaring insurance premiums.

Reforms to auto insurance in 1996 reversed a sharp rise in premiums, but rates have begun to increase because of growing health care and vehicle repair costs.

The Ontario reform package announced by Premier Ernie Eves today is designed to ensure that injured people receive the care they need while reducing red tape, fraud and abuse to help stabilize insurance rates for Ontario drivers.

Amendments to regulations will:

  • Streamline access to treatment for common injuries such as whiplash by introducing a pre-approved framework for treatment;
  • Improve benefits for children suffering serious injuries;
  • Restrict the use of medical examinations by insurers in order to end duplication;
  • Prohibit unfair business practices by health care providers and paralegals; and
  • Introduce a code of conduct for paralegals working within the auto insurance system.

In addition, the government is prohibiting insurers from changing the risk rating of consumers because of not-at-fault accidents or inadvertent NSF cheques.

Eves also announced the creation of an Auto Insurance Theft and Fraud Task Force that will work jointly with the Ontario Crime Control Commission on ways to combat organized car-theft rings, staged accidents and other fraudulent practices.

To develop longer-term changes, Eves said the Ministry of Finance will soon release a White Paper which will propose steps in other areas of the auto insurance system .

The Insurance Bureau of Canada said it endorses the Ontario government’s reforms.

“Today’s announcement sends a very positive signal to insurers and consumers alike that the government is serious about addressing the high costs in the auto insurance system in Ontario,” said Mark Yakabuski, IBC’s vice president, Ontario region.

“The reforms announced today reflect extensive discussions among the insurance industry, health care providers and other groups to find solutions to the challenges facing the auto insurance system,” Yakabuski said.

“We strongly support the changes announced today and IBC will work closely with the government to ensure the implementation of the second phase of reforms once the government’s White Paper is tabled.”