March 2, 2021 (Toronto) – Today, Kim Donaldson, Vice-President, Ontario, Insurance Bureau of Canada (IBC), issued the following statement:
“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. IBC and its members have long advocated for much-needed reforms to the towing industry and congratulate the government for taking bold action.
Today’s announcement that the government will introduce legislation to establish a provincial oversight model for the towing and storage industry, explore licensing for tow truck drivers and introduce clearer equipment standards is welcome news.
In addition, IBC supports the creation of a Joint Forces Operation team that will immediately take direct aim at ongoing fraud, violence and corruption in the towing industry, as well as expanding the scope of a tow-zone pilot that will do away with a “first-on-scene” practice that many stakeholders say rewards tow-truck drivers for dangerously racing each other to crash scenes. IBC advocated for this pilot and are pleased that private passenger vehicles have been included.
Overall, today’s announcement is an important step toward reducing fraud in the insurance system and making auto insurance more affordable for everyone.
This is good news for drivers in Ontario. IBC will continue to work with the government and stakeholders to ensure the legislation meets the goals of tackling fraudulent activities that drive up auto insurance costs and threaten public safety.”