The Insurance Bureau of Canada (IBC) has responded to the Ontario government’s latest move to address the issues surrounding the province’s towing industry, praising the decision.
On June 29, 2020, the provincial government of Ontario announced the creation of a new task force that would improve oversight of the local towing industry. The task force will help develop a regulatory model to enhance safety and enforcement, define protections for consumers, and improve towing standards. It will also consider implementing tougher penalties for offenders.
“IBC applauds the Ontario government for taking action against criminal activity and violence in the towing industry,” said IBC Ontario vice-president Kim Donaldson in a statement responding to Ontario’s decision. “Insurance fraud is a safety issue for consumers. Lives can be put at risk as a result of these criminal actions.”
Donaldson added that insurance fraud costs Canadians through higher insurance premiums. In addition, fraud can put a strain on health care services, emergency services and court systems, the vice-president explained.
The new task force will review several topics related to Ontario’s towing industry, including provincial oversight of safety, consumer protection, improved industry standards, training, and background checks.
In particular, the task force may consider opportunities for increased protections for consumers against first-to-scene unethical business practices that usually lead to accident chasing. The task force will also look into cracking down on insurance fraud rings, and increasing consumer choice for payments and repairs. In addition, it will review ways to clear accidents from the roadside faster, in order to minimize lane reductions and reduce congestion.
