August 14, 2013

Way back before 1930 Insurance Companies were thought of in Canada as a trusted friend, especially in the area of life insurance. Life Insurance is the biggest money maker for Insurance Companies then and today. Then somewhere in the late fifties Insurance Companies began to get greedy. They wanted more. One of the areas they wanted to control was the Automobile Insurance Industry. They saw huge profits in this area. All they needed was to gain some control in the Ontario Government and they set the lobbying wheels in motion. Unfortunately for them they were caught defrauding people in some of their Life Insurance scams in the sixties. This would set them back for years. They had lost all of their Government friends and influence. It wouldn’t be until somewhere around the 1970s before they would find the lost gold of the Incas. Their names were Bill Davis and David Peterson. It was the Bill Davis government who killed the Unsatisfied Judgment Fund and let the Insurance Companies take over which in effect made them part of the government because as the law stated; you must have auto insurance to drive a car on any road in Ontario. And the only place to get it was from an Insurance Company. At that time the cost of Unsatisfied Judgment was just over $100.00 per year per car. Insurance Companies were charging over $200.00 for the same coverage. I wonder how Bill Davis ended up as a director of a large Insurance Company some years later? The Unsatisfied Judgment Fund was set up in Ontario and provided three important things for the people of Ontario. It meant that people who couldn’t afford regular car insurance would have an alternative so that they would be allowed to own a car. The fund only covered $300,000.00 in liability but, at least it was better than nothing. As for whatever other damage you incurred, the Government would cover those costs and then sue the Unsatisfied Judgment driver for those costs and believe me they did sue and those drivers did pay even if it took them the rest of their lives. The other thing the fund provided was that there was no phantom discrimination. Once you held a “qualified drivers’ license in Ontario” you paid the same price as anyone else. In 1990 the Insurance Companies finally not only got what they wanted but a lot more. They had a chance to become a bigger part of the Government of Ontario. Their profits were soaring, giving them more available money to lobby with. Whatever they put in to lobby a change with they got back double. Peterson let the Insurance Companies raise rates, without looking for a reason why. He turned a blind eye to what was now becoming a serious problem in Ontario. Petersons’ government was finally defeated by the one party that would make him look like an incompetent clown. But he didn’t go quietly, he left Ontarians with unprecedented auto insurance rates and the biggest debt the province had ever seen. Unfortunately Ontario became a victim of the recession and forced the Insurance Companies to become creative in the way to raise rates. One of the ways was to create losses the business was suffering. The losses they suffered were not really losses. They were non-existing paper losses. They would use the income of the current year of let say $500,000,000.00. Then they would project their income for the following year to be $400,000,000.00. An instant loss of $100,000,000.00 and a reason to raise rates. As ridiculous as this sounds it worked and is still working today for them. Next was the Mike Harris government. I had often heard that what kind of a sweetheart deal you made with Harris depended on how much whiskey you fed him. That could be the difference in him selling you a highway or a nuclear plant. The Insurance Companies began to see their profits increase to ridiculous levels and it was probably the Insurance Companies who came up with the idea to introduce s.o. 2003 chapter 9 into the Insurance Act. It was designed to bring up Mikes’ popularity and make the Insurance Companies look responsible and compassionate before the people of Ontario started to riot. What it did was to freeze insurance rates and control the incredible profits Insurance Companies were making. It sounded like a good idea. Good enough that the majority of the people of Ontario bought into it. The problem was they didn’t pay attention to the part that said that part of the bill was only going to be effective for twelve months. The Harris Government also made some changes to reduce what Insurance Companies paid out and increased what they took in. After that, it was business as usual. Of course greed only breeds greed and waiting in the wings and being sculpted to their idea of perfection for several years was their perfect puppet. A man with no morals, no ethics, no honesty and absolutely no integrity. Dalton McGuinty. The Insurance Companies still had some problems that needed to be addressed. They had been breaking the law for several years now and that needed to be addressed at one time or another. Although McGuinty was their boy they still didn’t fully trust him. Besides being a Prima Donna he was also the most despicable person ever to set foot in Ontario and if he saw a better option he just may turn on the Insurance Companies. First order of business was money. They wanted more and money of course trumps any other issues. They wanted their rates to be increased whenever they had a whim to do so. First up on September 6, 2005 was to have McGuinty promote Bob Christie to CEO and Superintendant of the Financial Services Commission of Ontario. This office gave Bob Christie the absolute power to accept or decline any raises in auto insurance rate. The problem for the people of Ontario with Bob Christie was that he had a bit of a disability. He had had his face so far up the Insurance Industry and McGuintys’ butts that his lips were no longer able to get the proper formation to say the word No. He could only say” Yes” and he said yes a lot. Next in line for McGuinty was to take control of the Small Claims Court. Corrupt them and anyone who served there. Make it virtually impossible for the average person to bring a case before this court. Simple for a person of McGuintys’ character, and criminal mind. In 2009 the Insurance Companies of Ontario sold over 9.9 billion dollars in auto insurance policies. They needed more changes to minimize their responsibility to the insured. They needed this; each motor licensed vehicle must maintain at least $200,000.00 in liability coverage. Liability Insurance responds when you or a driver of your vehicle causes property damage or bodily injury to a third party. The act also stipulates that you must carry Accident Benefits coverage which responds if you or a driver in an accident, as well as Uninsured Motorist coverage if you are in an accident where the other party does not maintain adequate insurance. What the Insurance Companies needed now was one of their government puppets that wasn’t quite right in the head. Every village has an idiot and Ontario has the grand daddy of them all. Enter Dwight “Tweedledum” Duncan a rare find. Someone whose ethics and care for the people of Ontario was far below what McGuinty possessed. With the help of Duncan it was really the Insurance Companies that drafted the new Ontario Insurance Act in the Spring of 2010. Their orders to McGuinty, Christie and Tweedledum were, get it done, get it passed and have it in place by September 1, 2010. It handed the keys to the vault to the Insurance Companies with a 50% reduction in rehabilitation benefits and attendant care benefits, a 10% cut in income benefits and housekeeping and care giver expenses would only be available to those with catastrophic injuries. Don’t forget these items were already gutted by the previous Harris Government. The changes were stunning and had caught everybody by surprise. The best Tim Hudak could come up with was, “What I am hearing is people are paying more and getting less. The new product the government is putting out actually reduces coverage for Ontario families, and in some cases they are paying the same price or more for a lesser product.” A bold and dangerous statement from Tim Hudak considering that it was the Conservatives that let these parasites loose on the Ontario public and the shenanigans he was a big part of not only with Insurance Companies but Ontario Hydro as well, as a member of the Harris government. The moment this legislation was introduced a no confident vote should have been introduced and the government should have fell. But it never happened, and it never happened because all three parties are rule by The Insurance Industry. So why resurrect the old Unsatisfied Judgment Fund. It will create competition that will force the Insurance Companies to bring the cost down where it should be. If the Unsatisfied Judgment Fund charged $400.00 to $500.00 per car per year for liability insurance, that would seem to be a reasonable amount for anyone who owned one car. If you own two or more cars it becomes a little more expensive and that’s when it creates a field of fair competition for the Insurance Companies to play in. For instance let’s say you own a car and a motorcycle. Chances are the way things are now you are paying in the area of $1,000.00 to $1200.00 a year for just Liability on the car and $1500.00 a year on the motorcycle for the same coverage. You can only drive one vehicle at a time and you probably use the motorcycle less than six months per year. Under the Unsatisfied Judgment Fund you would be paying $1,000.00 a year for the same coverage on both vehicles. No one can tell me that the Insurance Companies can’t compete in that environment. Hudak, Wynne, and Horwath you don’t have what it takes to run this Province. Time and time again you have failed this Province.


  1. Woody Says:

    Who is going to fix this problem?

  2. yourwardnews Says:

    Dear Woody,

    It’s good to know that people are asking questions about Ontario’s insurance industry. Well, there are two things that you can do: Firstly, you can make it an election issue. When a politician comes knocking on your door seeking your vote, treat them as if you were interviewing an applicant for a job. After all, you just might hire him or her to WORK FOR YOU. Then again, a judge in the case of McGuinty’s promise of ‘no new taxes’ ruled that politicians are allowed to lie. (A polygraph machine may be helpful). Secondly, organize several massive non-violent protests. These days you have to make some serious noise to garner the public’s attention. If you contact me again we will discuss several other options.

    Sincerely Yours’, Allen Fields-Financial Reporter

  3. Mirela Says:

    I want to make a petition on Change. org for Justin Trudeau to take in consideration the problems we face regarding the car insurance and in it to post your article if you allow me to do so and of course I would like to talk more about it with you before posting the petition if you would be interested in talking with me. I would really appreaciate your help,

    Thank you and Best Regards,


  4. Phil Rogers Says:

    Okay fine! In 1976 or so I was in an accident and broke my femur and almost lost my left leg and spent 4 months in traction. I had that NDP insurance and was sued for 55,000 and they got 22,000 from a broken pelvis and finger! I lost my marriage and home and no job and to this day I have no license. Whom do I contact? Last was Ontario office this and at first it was 150 a month now older it is 70!! I got a knee knew12 years ago. hard to walk now and job?? How.

  5. Glenn Parent Says:

    its funny to see how in 2017 no one has heard of this -it started out a 15 bucks a year -the next year 35- and the next year 50-then they cancelled it -lmao-i took all 3 years-saved a bundle

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