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| Sudden end to driving need for insurance biz must- - Friday, October 31, 2003 at 13:12 |
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October 31, 2003 Funny how the world turns. Or U-turns. Hours after Ralph says he wants to freeze premiums, and with pressure building for a rollback of rates and the scrapping of any cap on minor injury claims, the insurance companies fold like a cheap deck of cards. What one minute is absolutely necessary, urgent, politically untouchable and the anathema of apocalypse now to the premium poobahs is suddenly ... ooops ... off the table. From a What Must Be to a Whatever. Just like that. Now, facing a fight they know they cannot win, the insurers cut their losses and drop the demand for the $4,000 cap on minor injury claims they tirelessly told the premier and the public they had to have for any premiums to go down. In a hot-off-the-press proposal they admit will have unknown impact, the insurance companies now decide what they REALLY would rather have are lost income awards paid on take-home dough, not gross dollars, elimination of pre-judgment interest, mandatory mediation six months after a loss and a 25% payout reduction to victims not wearing a seat belt. They REALLY need regulation of lawyer contingency fees, nixing of both cash advances from lawyers to clients and promises of cash payouts in lawyer advertising. And their compulsory cap on claims is ... I'm looking, I'm looking ... nowhere to be seen. The do-or-die drivel on injury claims is so much Chicken Little. No sky falls. Bust. Since the premier says he won't make Edmonton drivers pay more than Calgary drivers with similar records, and there will be a rollback for very young and very old drivers, all that would seem to be left is to ensure average rates for average Albertans match or beat the other western provinces. Ralph gave us his word on that score. The idea of the province making the first move and nixing the 3% sales tax on auto insurance policies is gaining steam. The rate freeze, to be officially approved Monday by Ralph and his cabinet, must also be clearly applied to this year's rates, not next year's. Even if the freeze doesn't last long, let's have no playing cute with the calendar. The insurance companies still agree to disagree with the government plan to ignore age and gender when setting premiums. They still want a maximum rate category just for young male drivers, though the insurers claim even those premiums would still be closer to other western provinces. No matter. Whatever comes down when the bean counters crunch the numbers, the premier's premium pledge must be honoured. There is still some arduous arithmetic to be done. Plus Ralph must put in an independent body to green-light any future rate hikes, otherwise we face a gruesome gouge again next year. Of course, the lawyer for an accident victims rights group is naturally all smiles with this no-cap Plan B. Mark McCourt admits the premier's rate freeze is the big card play in this high-stakes game of political poker. "The freeze made good common sense. Without a rate freeze, this Plan B would not be released. Plan B is a substantial concession," says McCourt, admitting he is "quite high" on what's transpired in no time at all. "It is almost unthinkable a plan enjoying such consensus and support would be unsatisfactory to the government." The insurers, in their new document, do a rhetorical roundabout. With the sudden inspiration of Plan B, "the automobile industry will be greatly improved." The move of insurance companies, they say, will "stem the tide of rising premiums in the short term" and "quickly address the government's major concerns" and "provide immediate premium cost improvement for many Albertans." Cue the Kleenex as I quote their words of sweet reason. "The Albertans who purchase auto insurance are our customers. We have a vested interest in looking after their needs in a responsible manner that serves their needs, government expectations and our requirements." Pure poetry. McCourt in the victim's corner is mystified but merry. "Believe it or not, here we are. Who would have thunk it?" Pure politics.
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