ING launches "accident forgiveness" option for auto covers

ING Canada Inc. (TSX: IIC.LV) will offer its policyholders the option of an "accident forgiveness" clause on their auto insurance as from July of this year, a company statement says. The Ontario government is believed to be aggressively pushing for a standard accident forgiveness clause to be contained in all auto covers. Discussions between the government, the Insurance Bureau of Canada (IBC) and the Insurance Brokers Association of Ontario (IBAO) on this issue have been underway for several months.
Under the ING accident forgiveness option, which it has dubbed the "Responsible Driver Guarantee", insureds would be able to claim their first "at fault" accident without any impact on their premiums or driving record. The difference between ING’s accident forgiveness option and other claims protection products offered by insurers is that the first accident claim will not go down on the driver’s record which could have an impact on the policyholder at a future point, observes Debbie Coull-Cicchini, chief operating officer at ING. "We don’t believe that one bad makes a bad driver."
ING plans to offer its accident forgiveness pass for $50, and will make it freely available to five-year contract customers. Drivers without an "at fault" accident within the past six years will qualify under ING’s option. The insurer says that 450,000 of its customers in Ontario will qualify for the guarantee, of which 200,000 will automatically covered when their policy renews. ING is waiting for regulatory approval from the Financial Services Commission of Ontario (FSCO).