Auto insurance companies in Ontario have praised the provincial government for developing a plan to improve safety and enforcement in the towing industry.
The plan is based on recommendations by an Ontario towing task force, which was established in June 2020 to increase safety and enforcement, clarify protections for customers, crack down on insurance fraud, improve industry standards and consider tougher penalties for violators in response to concerns about violence and criminal activity in the towing industry.
On March 02, 2021, the Ontario Government announced it is launching a Joint Forces Operation team made up of the Ontario Provincial Police (OPP) and municipal police services, which will address violence in the industry and introduce a tow zone pilot on designated sections of provincial highways.
“The ongoing violence in the towing industry is unacceptable, which is why our government is taking action to make the towing industry safer through strengthened oversight and standards,” said Caroline Mulroney, Ontario’s Minister of Transportation. “Ontario’s towing industry is a vital service on our roads and highways every day, and these actions will help to improve safety for all drivers.”
The government will also implement further recommended actions to better protect customers and improve towing industry safety, including establishing an oversight model of the towing and storage industry, exploring licencing for tow truck drivers, and introducing clearer equipment standards. Furthermore, it has revealed plans to form a new technical advisory group made up of representatives from towing companies, consumer advisory groups, automobile insurance companies, municipalities, and law enforcement organizations.
“We’re thrilled to see the results of the provincial towing task force, including the introduction of a tow zone pilot that will provide faster and safer towing services to truck drivers travelling on some of Ontario’s busiest highways,” said Geoffrey Wood, senior vice president, Ontario Trucking Association. “With the introduction of this tow zone pilot, truck drivers in the Greater Toronto Area will see benefits such as faster service and standard rates for towing services.”
Insurance organizations in Ontario have praised the provincial government’s plan to increase safety and oversight for the towing industry. Bryant Vernon (pictured), chief claims officer at Aviva Canada, said: “At Aviva Canada, we’ve helped many vulnerable customers who’ve been taken advantage of by today’s unregulated towing companies, and we continue to educate our customers about the steps they can take to reduce their risk of a bad outcome. We’re pleased to see the announcement regarding the towing industry and the steps the Ontario government is taking to protect drivers.
“We support the move to expand the tow zone pilot to include private passenger vehicles – it’s an important step towards helping drivers in Ontario. We believe the proposed legislation will help resolve accidents more quickly and more safely for our customers and all drivers in Ontario. We look forward to continuing to work together with the Ontario government to improve safety for all drivers.”
The province is proposing legislation that would, if passed, enhance standards and improve safety in the towing industry. It would also help to mitigate the underlying issue of insurance fraud, which is rampant in the towing industry, and is a significant factor behind the very high auto insurance rates in Ontario.
“IBC applauds the Ontario government for taking action against criminal activity and violence in the towing industry,” said Kim Donaldson, Ontario vice-president at the Insurance Bureau of Canada. “Insurance fraud is a safety issue for consumers. Lives can be put at risk as a result of these criminal actions.”
She added that the new guidelines are “another tool to help protect drivers and ensure that at the scene of a collision, the custody of the vehicle always rests with the insurer and vehicle owner.”
The issue of vehicle custody is one that plagues auto insurer when dealing with collision claims. Vernon also shared a real-life claim example from Aviva Canada in which a driver was involved in an accident and her vehicle was towed to a body shop even though she had instructed for it to be towed to her dealership. For weeks, Aviva Canada tried to gain access to the insured’s vehicle for repairs, but the body shop wouldn’t release the vehicle or provide an invoice for services. At the same time, the driver was harassed and threatened by the shop.
To make matters worse, the driver also discovered that without her consent, an employee of the body shop visited a Service Ontario office and transferred the ownership of the vehicle to the shop. To help get her vehicle back, Aviva Canada deemed the vehicle a total loss and paid for the value of her car, so she could get on with her life. To date, almost a year after the accident, the vehicle remains in the possession of the shop and Aviva is still trying to resolve the matter.
“Tow truck drivers are a vital part of keeping Ontario moving,” said solicitor Genera Sylvia Jones. “But they’re operating in an industry that lacks oversight structure, and where too many criminals are making their own rules.” The new Joint Forces Operation team will investigate criminal activity within the tow business, and hopefully crack down on fraudulent activity.
