Insurance Business Ontario MPP proposes insurance recovery legislation

Ontario MPP proposes insurance recovery legislation A bill that was recently introduced could – once passed – force insurers to pay out claims for cases related to domestic violence.

“No-one deserves to go through this double hell,” said Liberal Mike Colle. “This is a violation of a person’s basic human rights that is tolerated.”

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The Innocent Persons Insurance Recovery Act was proposed by Colle yesterday in Ontario’s Legislative Assembly, CBC reported; he hopes the bill will pass by June.

The legislation comes weeks after CBC conducted an investigation on insurance company policy clauses in Ontario that can be used to deny policyholders coverage if one of the people named on the policy intentionally causes damage.

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Currently, only Alberta, British Columbia, Manitoba, and Quebec have laws that require insurers to pay out claims to innocent victims (also called “innocent co-insureds”). Saskatchewan expects to have a similar law in place by early next year.

“It is critical that something be done to right this wrong,” Colle highlighted. “This is a very blatant injustice that exists in Ontario that has been on the books for years and needs to be changed.”

Meanwhile, an online petition addressed to provincial finance minister Charles Sousa is calling for the government to force insurers to pay out these types of claims. The petition had almost 5,600 signatures as of Wednesday evening.

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