March 30, 2005 by Canadian Underwriter
TD Meloche Monnex announced Wednesday it would reimburse some Ontario auto insurance clients for a rating error dating back to 1999.
About 155,000 policyholders will receive an average reimbursement for the five-year period of $68, which includes both premium, sales tax and compound annual interest. Some customers were under-billed as a result of the error, but no change will be made with respect to these clients.
TD Meloche Monnex says the errors related to policies issue by its Security National Insurance Co. from 1999 until October, 2004, while errors were also found in policies issued between the end of 199 and July, 2002 by TD General Insurance Co., formerly CT Direct Insurance.
Most of the impact of the error was experienced in 2004, and the company says once the mistake was known it “fully investigated all of its processes to identify the cause for the rate miscalculation and to capture all client accounts impacted”.
“We very much regret this error and can assure our clients that additional controls have been implemented to prevent a similar situation from recurring,” says Marilyn Flanagan, senior vice president of client services for TD Meloche Monnex.
The Financial Services Commission of Ontario (FSCO) has approved the reimbursement program and cheques are to be sent out beginning this week.