DAILY NEWS Jun 8, 2012 3:52 PM - 4 comments

Ontario's Bill 45 defeated at second reading

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A controversial private member’s bill designed to prevent insurers from using granulated geographical areas for underwriting auto insurance was defeated in second reading in Ontario’s provincial legislature on June 7.

Bill 45, brought forward by Brampton NDP MPP Jagmeet Singh, was debated yesterday in the Ontario legislative assembly and “lost on recorded division,” meaning that the majority of MPPs voted against the bill.

The proposed legislation recommended changing the risk classification system so that insurance companies could not vary premiums by specific geographical locations, but rather by broad territorial categories.

“Insurance rates should be based on your driving record, not on what part of the GTA you raise your family in,” said Singh, who was encouraging Ontario Liberals to vote in favour of the bill, which passed first reading in March. “It's simply unfair that good drivers in parts of the GTA pay as much as double for insurance than good drivers in other GTA neighbourhoods.”

Insurance Bureau of Canada (IBC) was vocal in its criticism of the proposed bill.

“Mr. Singh does not have the expertise in actuarial science to meddle with the Ontario auto system to this degree,” noted Ralph Palumbo, IBC’s vice president of Ontario. “He does not know the consequences of this bill, nor did he consult with the insurance industry prior to introduction. That is reckless.”

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