Consumers' Association Issues Warning To Ontario Consumers Considering Making Insurance Claims As Result of Blackout

OTTAWA, Aug. 18 /CNW/ - The Consumers' Association of Canada today issued
a Consumer Advisory urging consumers to be on the alert when thinking about
making a claim on insurance policies for any losses incurred as a result of
the electrical blackouts.
"Consumers should be wary before even discussing a possible claim", said
Mel Fruitman, President of the Consumers' Association of Canada, "Insurance
companies are known to have increased premiums on auto insurance policies when
consumers simply talked with their broker or auto insurer about minor damage
to their vehicle even though no claim was ever made."
"Our Association is concerned that this practice by insurance companies
may also be applied when it comes to property damage claims as a result of the
blackouts in Ontario", said Mr. Bruce Cran, National Secretary of the
Association. "We strongly urge consumers to read the fine print on their
policies before talking with their insurance provider".
"Consumers need to have the protection and security they believe they are
buying with their policies. We are asking the insurance industry to make an
immediate public statement that it will guarantee premiums will not be raised
for consumers who simply report some type of loss due to the blackout but
decide to make no claim".
The Association is asking Ontario's Premier Eves to set up a consumer
insurance watchdog to oversee the insurance industry's response to claims. "It
is important that insurance companies respond quickly to claims", said Mr.
Cran. "Ontario consumers want to get back to normal as soon as possible. Foot
dragging by insurance companies in the payment of claims will not allow this
to happen."