The Canadian Press: Consumer groups call for changes to provincial insurance regulations

The regulations, which were changed in October 2003, increased the deductible for compensation awards from $15,000 to $30,000 and placed an increased burden of responsibility on victims to prove real harm after an accident. In 2003, insurance companies registered a profit of $2.5 billion, rising to $4.7 billion in 2007, Halpern said.

It's bad for Ontarians and it's bad for business," he said at the outset of a two-day auto insurance summit where consumer advocates squared off against industry representatives. Halpern also fired a salvo at George Cooke, CEO of Dominion Insurance Company of Canada, who was sitting at a table only metres from the podium. Let's look at Mr. Cooke's company," said Halpern, noting that Dominion increased dividends paid to its parent company from $40 million to $60 million last year despite a drop in net operating income.

Congratulations, Mr. Cooke: auto insurance is a good business." Halpern said insurance companies operate outside regular market forces and have successfully lobbied the government for regulatory changes rather than adopting fiscally responsible business practices. His comments came after Cooke delivered a speech attacking the adversarial stance that lawyers take when dealing with insurance companies.

Referring to an article on the Ontario Bar Association's website criticizing insurance companies for earning more by offering less, Cooke said that "kind of practice destroys credibility very quickly." Surely consumers deserve a thoughtful and accurate representation of facts, and not dramatic misrepresentation." Cooke also called into question the legal profession's practice of taking between 30 to 50 per cent of injury settlements for themselves.

Former associate chief justice Coulter Osborne, who was hired by Ontario's Liberal government in 2006 to improve access to civil courts, likened the $30,000 deductible to a "tax on pain." Osborne said the 2003 regulatory changes have become "direct barriers to justice" and need to be taken under "serious consideration."

The Ontario legislature plans to reopen the debate over the regulations this fall. Adrienne Seggie, whose son was killed by an alleged street racer 18 months ago, said the $30,000 deductible for pain, suffering and personal injury adds "insult to injury." Seggie said each of her four remaining kids can claim about $30,000 in damages for their brother's death, but each settlement is subject to a separate $15,000 deductible.

Marie Smith, president of the United Senior Citizens of Ontario, said current provincial regulations are unacceptable and discriminate against seniors. I feel this is just another form of elder abuse," she said, adding that seniors can't sue for lost income after an accident.

She said the $30,000 deductible prevents grandparents from obtaining any compensation for the death of a grandchild. If I was suing for a grandchild, I can only get $15,000 and they take $30,000, so I get nothing," she said. Hosted by Copyright © 2008 The Canadian Press.

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