Ontario’s decision to move forward with the creation of a province-wide towing regulation system has been met with praise and support from the Insurance Bureau of Canada (IBC).
Earlier this week, the provincial government announced that it would introduce legislation to establish a provincial oversight model for the towing and storage industry, explore licensing for tow truck drivers, and clearly define equipment standards for towing services.
On the same day of Ontario’s announcement of the planned legislation, IBC released a statement in support of the decision.
“IBC congratulates the Ontario government for its commitment to deliver substantial change to the towing industry in the province to make roads and highways safer for drivers and tackle rampant fraud,” said IBC Ontario vice president Kim Donaldson. “IBC and its members have long advocated for much-needed reforms to the towing industry and congratulate the government for taking bold action.”
Donaldson also explained in his statement that the IBC supports the formation of a Joint Forces Operation team that will address the ongoing fraud, violence, and corruption in the towing industry. The bureau also approves of the government’s plan to expand the scope of a restricted tow-zone pilot that would eliminate the “first-on-scene” practice – a practice that many stakeholders have said encourages tow truck drivers to dangerously compete among themselves to reach crash scenes.
Starting this summer, four sections of highways in the Greater Toronto Area will become restricted tow zones under the new legislation. This means only a single towing company is allowed to operate in these areas, in an effort to cut down on “accident chasing.”
“Overall, today's announcement is an important step toward reducing fraud in the insurance system and making auto insurance more affordable for everyone,” said Donaldson.
