Canadian Underwriter

CIAG advises repair shops to get money up front

April 29, 2002   by Canadian Underwriter

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In light of the recent cancellation of policies by Ontario’s Markham General Insurance Company, the industry association representing bodyshops is suggesting its members get money up front from the company’s claimants for repairs. In an “urgent notice to shopowners”, the Collision Industry Action Group (CIAG) is advising member shops “that they should consider having the customers of Markham General pay for the repairs and the customer receive compensation from the insurer”.
Markham General has assured policyholders that despite its cancellation of policies effective June 15, claims will be honored and refund cheques handed out for unearned premiums.
Nonetheless, the CIAG notes that at least one shop has received several phone calls “indicating a reluctance in the collision repair marketplace to work for the insurer [Markham General]”.
The CIAG also issued a warning to its shops relative to the imposter company “Royal & Sun Alliance International Loans and Insurance”. Legitimate insurer Royal & SunAlliance Insurance Company of Canada is investigating the imposter, along with authorities. “Shops are strongly cautioned to immediately advise Royal & SunAlliance Insurance Company of Canada if a repair is requested from a customer with this similarly named group showing as an insurer,” states the warning.

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