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INDUSTRY NEWS
Facility Association ìÆîÅ Çéïî» ÓÚ Ã¯è to update insurance Õð¶×Æ øËÇÃÇñàÆ
rules, OTA says
ÁËïÃƶôé
Facility Association – an insurer of last resort for trucking operations that can’t secure coverage else- where – has revamped its ratings and commercial underwriting rules to bet- ter align with the regular insurance market.
Higher-than-expected insurance claims within Facility Association can create pressures that affect other insurance premiums.
øËÇÃÇñàÆ ÁËïÃƶôé ÓÚ À°îÆç å¯o Ç÷ÁÅçÅ ìÆîÅ çÅÁò¶ ÁÇÜÔÅ çìÅÁ êËçÅ Õð ÃÕç¶ Ôé ÇÜà éÅñ Ô¯ð ìÆîÅ êÌÆîÆÁî êÌíÅòå Ô¯ ÃÕç¶ ÔéÍ
øËÇÃÇñàÆ ÁËïÃƶôé - ܯ ÇÕ ÇÂ3⁄4Õ ÁÇÜÔÅ ìÆîÅÕðåÅ ÔË Ü¯ À°é·» àð3⁄4ÇÕ3× ÁçÅÇðÁ» çÅ ìÆîÅ Õðé ñÂÆ ÜÅÇäÁ» Ü»çÅ ÔË ÇÜé·» ù Ô¯ð ÇÕå¶ ìÆîÅ éÔÆo ÇîñçÅ, é¶ ÁÅêäÆÁ» ð¶Çà3×à Áå¶ ÕîðôÆÁñ Á3âððÅÂÆÇà3× Çéïî» ù ðË×±ñð ìÆîÅ îÅðÕÆà ìðÅìð Õðé ñÂÆ Ã¯è ÕÆåÆ ÔËÍ
Most of the changes are to
come into force Aug. 1, sub-
ject to regulatory approval, the Ontario Trucking Association (OTA) announced recently.
The association had joined with several industry insurers in 2018 to review what’s known as the Commercial Residual Market insurance. And many of the latest changes reflect recommendations that emerged during a May 2019 meeting between OTA, insurers, and Facility Association executives, the OTA adds.
Concerns had been raised about operations that misrepre- sent their businesses to secure favorable insurance premiums. For example, a fleet that does most of its business in Ontario might have told Facility Association that it’s based in New Brunswick, where the exposure to lower traffic volumes might lead to a lower risk for some types of collisions.
If the high-risk fleets file more claims than expected, however, those costs have to be absorbed by the rest of the insurance industry. That can introduce broader pressures on insurance premiums overall.
Facility Association emerged in the 1970s, when govern- ments began mandating automotive insurance. It’s available in provinces and territories other than British Columbia, Manitoba and Saskatchewan.
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ܶÕð ÇÂé·» ù ðË×±ñ¶àðÆ îé÷±ðÆ Çîñ Ü»çÆ ÔËÍ
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ܶÕð À°μÚ-÷¯Öî òÅñ¶ øñÆà À°îÆç å¯o Ç÷ÁÅçÅ çÅÁò¶ çÅÇÂð Õðç¶ Ôé, å» ÇÂà çÆ ñÅ×å ìÅÕÆ ìÆîÅ À°çï¯× ò3⁄4ñ¯o Ü÷ì ÕðéÆ êËoçÆ ÔËÍ ÇÂà éÅñ Õ°ñ ÇîñÅ Õ¶ ìÆîÅ êÌÆîÆÁî» Óå¶ ÔÆ çìÅÁ ò3⁄4èçÅ ÔËÍ
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