Repairing Ontario Auto Insurance: Ending Compulsory No-Fault?
Freedom Party of Ontario Releases Draft Policy for Public Consultation
August 6, 2003 - London, Ontario
Freedom Party of Ontario is today releasing its draft policy on automobile
insurance. Entitled "The Right Direction
for Auto Insurance Reform", hard-copies of the draft document
are being sent to organizations representing consumers and insurance,
health, legal, accounting, and actuarial professionals. The draft can
also be obtained from the Freedom Party web site: www.freedomparty.on.ca/autodraft.htm.
Freedom Party draft distinguishes itself from the other parties' plans
with four key reform proposals:
1. Repealing the failing no-fault
system and restoring Ontario's pre-1990, tort-based, wrongdoer-pays
Freedom Party cites the numerous and costly failures of no-fault
in the USA,
and the number of states
that have returned
to a tort-based system (including Colorado, which switched back
to the tort-based system on July 1, 2003).
2. Repealing the requirement of drivers
to purchase liability insurance (first imposed in 1980).
Party cites the results of US studies which indicate both lower insurance
premiums and lower numbers of
uninsured drivers in
states that do not force drivers to purchase liability insurance. Drivers
could continue the current practice of purchasing insurance to cover
them in the event they are injured by an uninsured driver.
3. Giving drivers and insurers flexibility
to determine benefits and costs, rather that mandating certain benefits.
Freedom Party government will allow a diversity of approaches to
costs down, rather than continue
to impose a single, government-mandated
statutory benefits approach that tends to invite insurance fraud.
4. Ending the government price manipulation
and pre-approval process that ultimately forces low-risk drivers to
subsidize higher-risk drivers.
Freedom Party takes the position that no driver should have to pay
the real cost of another
driver's insurance: "From each according to his risk, to each
according to his policy",
that simply cutting benefits cannot improve
the situation. "Liberal, NDP and Progressive Conservative governments
have been operating on the pay-less-by-getting-less
principle. Increasingly, that approach has
actually left Ontarians paying higher premiums for less coverage.
is not, in
person's mind, an improvement".
will price caps help, according to McKeever. "Insurance companies
are raising premiums to compensate for very real revenue shortfalls.
Ernie Eves and Dalton McGuinty
might think they are winning a few votes by proposing or threatening
caps, but those caps will actually succeed only in forcing
offering auto insurance
Freedom Party is proposing an economically sound, just, and fair solution
problem facing Ontario", concludes the party leader.
McKeever (who will be running in the riding of Oshawa, against
Sid Ryan and Jerry Ouellette) is available to discuss this matter.
You can contact
Party is expected to run candidates in approximately half of Ontario's
ridings in the coming election.
further information: Paul McKeever, Leader, Freedom Party of Ontario.
Oshawa Office Telephone: 905-721-9772.