Ontario removes existing restrictions on rebating for auto insurers
April. 17, 2020
Global Korean Post
The Ontario government is enabling auto insurance companies to provide temporary insurance premium rebates to drivers during the COVID-19 pandemic.
The province has amended a regulation under the Insurance Act to help ease the financial pressure on working people and families during this public health crisis.
By amending this regulation insurance companies would be able to provide auto insurance premium rebates to consumers for up to 12 months after the declared emergency has ended.
“We are in an unprecedented time and people are experiencing extraordinary financial pressures,” said Rod Phillips, Minister of Finance.
The rebating prohibition is designed to protect consumers from being misled in purchasing decisions based on a rebate and to provide consumer protection from insurers who may discriminate between consumers.
Auto insurance policy terms generally last for 12 months. The 12-month time period of this regulation would allow insurers to provide rebates to all policyholders, regardless of their annual policy renewal date.
Ontario is the first jurisdiction in Canada to remove existing restrictions on rebating so auto insurers can provide additional consumer relief.
The Government and the Financial Services Regulatory Authority of Ontario (FSRA) will continue to work together to monitor how the auto insurance sector is responding.