IBC responds to Consumer Association’s blackout concerns

In response to a statement recently released by the Consumers’ Association of Canada (CAC) calling for the Ontario government to establish a watchdog body to ensure that claims relating to the power outage are dealt with fairly by insurers, the Insurance Bureau of Canada (IBC) has assured policyholders that claims submitted will not result in cancellation of homeowners’ policies.
The CAC statement cautioned policyholders against submitting claims to insurers relating to the power blackout on grounds that their homeowner premium rates could skyrocket. Policyholders should also be wary of discussing a possible claim with any insurance company representative. "Consumers should be wary before even discussing a claim. 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," says Mel Fruitman, president of the CAC.
The IBC, however, notes that insurers are not only honoring claims relating to the power outage, but many companies have taken steps to ensure that claims relating to this event do not reflect on their claims history. "Contrary to what the Consumers Association has suggested I recent media stories, companies [insurers] will not cancel coverage merely because someone makes a homeowners’ claim related to the power outage or calls an insurance professional to confirm coverage under a policy," says Mark Yakabuski, Ontario vice president at the IBC.