Ontario Government’s Legislation on Towing Industry a good first step

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Toronto, ON (Apr. 16, 2014) – The introduction of the Roadside Assistance Protection Act legislation is long overdue and will bring clarity to consumers with their interaction with tow truck operators. The Bill will help with disclosure and transparency for consumers requiring towing services so that prices are upfront and authorization is clearly provided.

Ralph Palumbo, Vice-President, Ontario, Insurance Bureau of Canada, says, “We support the government’s initiatives to protect drivers requiring towing services. A Consumer Bill of Rights is a positive step. In addition to protecting consumers from unscrupulous operators, this Bill will help combat insurance fraud, and may ultimately save consumers money and make our roads safer. We are hopeful that these measures in the bill will address concerns about fraud as noted in the Auto Insurance Anti-Fraud Task Force Report.”

These are positive developments. The Insurance Bureau of Canada’s Towing Working Group, in response to a Ministry of Consumer Services consultation, is focused on towing and storage issues in order to create an environment that is fair to all stakeholders. Recently, the Working Group recommended to the Government:

  1. Establish a provincial tow license and include tow trucks within the Commercial Vehicle Operator’s Registration (CVOR);
  2. Implement a standardized invoice and tow authorization form;
  3. Enact the Fair Value Guidelines principles;
  4. Shorten the notice period in the Repair and Storage Liens Act.

Palumbo added, “We look forward to working with the government on these important issues. Once all of these items are addressed, our roads will be safer, and consumers will be better protected and informed.”

About Insurance Bureau of Canada

Insurance Bureau of Canada (IBC) is pleased to celebrate 50 years as a valuable resource for insurance information. Since 1964, IBC has been working with governments across Canada to make our communities safer, championing issues that directly affect Canadians and the property and casualty (P&C) insurance industry. IBC is the national industry association representing Canada’s private home, car and business insurers. Its member companies represent 90% of the P&C insurance market in Canada. The P&C insurance industry employs over 118,600 Canadians, pays more than $7 billion in taxes and levies to the federal, provincial and municipal governments, and has a total premium base of $46 billion.

To view media releases and information, visit the media section of IBC’s website at www.ibc.ca.

SOURCE: Insurance Bureau of Canada