The provincial government of Ontario has amended some regulations on insurance premium rebates, allowing auto insurance companies to more easily provide financial relief to customers amid the COVID-19 pandemic.
The change will allow insurers to offer premium rebates for up to 12 months after the emergency has ended, The Canadian Press reported.
“Given the financial crisis that’s facing many Ontario families, I think with this barrier removed we should expect insurance companies to be responding in a matter of days,” said Finance minister Rod Phillips.
Although the government is not dictating the level of rebate for the insurers to provide, Phillips said that the amounts need to be “commensurate with the scale of duress that Ontario families are under.”
In addition to the regulatory change, the Financial Services Regulatory Authority of Ontario (FSRA) has released a guidance advisory to help both insurers and customers understand what constitutes as fair premium relief measures during this temporary declared emergency period. FSRA’s guidance interprets the legal framework for premium repayment programs, lays down an approach for how emergency relief rate filings are approved, and even lists actions auto insurers can take to provide relief to consumers without the need for FSRA’s approval.
The guidance became effective on April 15, 2020 and will remain in effect until it is withdrawn by the FSRA, a statement on the regulator’s website said.
