Ontario drivers pay too much for auto insurance,” states Irene Bianchi, Executive Vice President of Claims, Aviva Canada.

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The best deals on cars with active safety technology to decrease insurance

The best deals on cars with active safety technology to decrease insurance

Since last year, Ontario residents who chose to equip their vehicles with winter tires automatically qualify for a 2 to 5 percent discount on auto insurance premiums. Advances in vehicle technology – including autonomous braking, advanced airbags, pedestrian detection and lane-keeping assist systems – have even greater potential to dramatically reduce accidents and the cost of insurance.

“As semi-autonomous vehicle technologies become available, we will see insurers trying to get ahead of the curve to shift their insured fleet to these safer vehicles, thereby creating more competitive rates,” says Igal Mayer, CEO of RDA Insurance, which powers insurance rate comparison site ShopInsuranceCanada.ca. “Consumers will need to compare their vehicle purchase even more, right down to trim and options that include active safety technologies.”

In an industry first, Aviva Canada recently began offering a 15 percent discount on auto insurance for drivers of vehicles with autonomous emergency braking, which automatically applies the brakes when vehicle sensors or cameras detect a potential front-end collision.

“Autonomous emergency braking has been proven to help reduce the number of collisions leading to fewer injuries and lower claims costs,” said Steve Cohen, executive director of personal lines at Aviva Canada. “And we want to pass those savings to our customers.”

Our favourite deals this week feature vehicles with notable incentives that also come equipped with active safety technology.

READ MORE HERE: 

IBC congratulates law enforcement partners on successful auto theft investigation & subsequent arrests

In August 2016, auto theft investigators from Insurance Bureau of Canada (IBC) partnered with the Toronto Police Service’s Auto Squad, the Waterloo Regional Police Service’s “Break, Enter, and Auto Theft (BEAT)” team, and the Ministry of Transportation’s Branding Unit to launch an investigation into the thefts of several vehicles in Central and Southern Ontario.

“IBC investigators were able to identity several newly-registered vehicles which matched the descriptions of the stolen vehicles,” explained Dan Beacock, Director, Auto Theft, Ontario and Atlantic, IBC. “Through further investigation it was determined that these vehicles were, in fact, one in the same and were registered and being operated with fictitious vehicle identification numbers (VINs).”

To date, nine vehicles having a total value of approximately $279,100.00 have been recovered and positively identified as stolen.

“IBC congratulates our law enforcement partners on this investigation,” added Beacock. “We will continue to be an active partner in fighting auto crime in Ontario and across Canada. Auto theft and vehicle fraud are not victimless crimes – they impact consumers and can drive insurance premiums higher.”

Waterloo Regional Police Service, with the assistance of Stratford Police Service and Ontario Provincial Police, continued the investigation which culminated in the January 12 arrest of two individuals who were charged with several offences related to the possession of stolen vehicles.

Report the crime
To report an insurance crime, call your local police, IBC at 1-877-IBC-TIPS or Crime Stoppers at 1‑800-222-TIPS. For more information about auto theft, visit www.ibc.ca.

About Insurance Bureau of Canada
Insurance Bureau of Canada (IBC) is the national industry association representing Canada’s private home, auto and business insurers. Its member companies make up 90% of the property and casualty (P&C) insurance market in Canada. For more than 50 years, IBC has worked with governments across the country to help make affordable home, auto and business insurance available for all Canadians. IBC supports the vision of consumers and governments trusting, valuing and supporting the private P&C insurance industry. It champions key issues and helps educate consumers on how best to protect their homes, cars, businesses and properties.

P&C insurance touches the lives of nearly every Canadian and plays a critical role in keeping businesses safe and the Canadian economy strong. It employs more than 120,000 Canadians, pays $8.2 billion in taxes and has a total premium base of $49 billion.

For media releases and more information, visit IBC’s Media Centre at www.ibc.ca. Follow IBC on Twitter @InsuranceBureau and @IBC_Ontario, and like us on Facebook. If you have a question about home, auto or business insurance, contact IBC’s Consumer Information Centre at 1-844-2ask-IBC.

SOURCE Insurance Bureau of Canada

IBC reminds consumers to be prepared

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Court Orders Several Injury Claims Tried Together Due to Fraud Allegations

Reasons for judgement were released today by the BC Supreme Court, Vancouver Registry, ordering several lawsuits to be heard together due to allegations of fraud.

In today’s case (ICBC v. Singh) the court reviewed an application requesting that seven personal injury actions involving motor vehicle accident claims related to three separate collisions be tried together.

In addition to the injury claims ICBC sued the individuals alleging that they “knew each other and conspired to stage the accidents to make false personal injury claims.

ICBC applied to have all the lawsuits tried together. In granting the application Madam Justice Duncan provided the following reasons:

[34]        The authorities provide a non-exhaustive list of facts to consider when making a determination on consolidation or, as in this case, ordering that actions be heard together. The factors are derived from Merritt, as well as Shah v. Bakken, [1996] BCLR No. 2836, and Insurance Corp. of British Columbia v. Sam, [1998] BCJ No. 947:

1.       Will consolidation create a saving in pre-trial procedures?

2.      Will there be a real reduction in the number of trial days taken up by the actions heard together?

3.      What is the potential for a party to be seriously inconvenienced by being required to attend a trial in which they only have a marginal interest?

4.      Will there be a real saving in experts’ time and witness fees?

5.      Is there a common issue of fact or law that makes it desirable to dispose of both (all) actions at the same time?

6.      Will consolidation avoid a multiplicity of proceedings?

7.      What are the relative stages of the actions?

8.      Would consolidation delay the trial and prejudice one or some of the parties?

9.      Would there be a risk of inconsistent results?

[35]        In this case, an order that the actions be heard together should result in a saving in pre-trial procedures. There would be one discovery of ICBC representatives concerning the fraud allegations rather than separately scheduled days of discovery, one per defendant. There would likely be a real reduction in the number of days required for trial if the actions were heard together, rather than as seven tort actions and one fraud action, as a repetition of evidence could be avoided. Parties could be excused for the portions of the trial which do not relate to them, saving their time and expense in that regard.

[36]        Conversely, the actions could be heard in stages with the ICBC fraud action scheduled first as it might determine, in whole or in part, the viability of the individual tort actions. This, of course, would be dependent on the views of a judge at a case planning conference or a judicial management conference.

[37]        The common issues of fact or law as between these actions is manifest in the pleadings and in the documents placed before the court by ICBC. The question is whether these accidents were staged by the parties. The parties knew one another, or at least knew one person with connection to more than one of the collisions. Mr. Haghmohammadi has some involvement in Collision #1 as he gave Ms. Prakash the vehicle she was driving at the time. Mr. Inderjit Singh, who drove the vehicle which allegedly injured Ms. Prakash and Ms. Mehran in Collision #1, had business dealings with Mr. Haghmohammadi in the sale of rebuilt motor vehicles and was in fact involved in Collision #3 with him.

[38]        If individual trials were held, inconsistent results could ensue. It is no answer to say that Ms. Prakash’s trial would create res judicata in relation to issues of alleged fraud arising from Collision #1, as Ms. Mehran has a separate proceeding arising from the same accident and Mr. Inderjit Singh is also a litigant in relation to Collision #3. Determining what issues were adjudicated in the first trial would not be straightforward and might visit unfairness on others who were not parties at Ms. Prakash’s trial.

[39]        I acknowledge that Ms. Prakash’s action is set for hearing in February and an order that the matters be heard together will necessitate an adjournment of that trial; however, I am satisfied of a high degree of interconnectedness between the parties and that it is in the interests of justice that the matters be heard together, or as directed following the case planning process or by judicial management, if a judge is appointed to hear the matter.

Nearly half of Canadians lack a financial plan, putting their goals at risk

A new CIBC (TSX:CM) (NYSE: CM) poll finds that nearly half (46 per cent) of Canadians do not have a financial plan in place to reach their goals, despite many feeling concerned about their retirement years.

“While most of us have a fairly good sense of our financial goals, so many Canadians do not have a clear road map in place to achieve what they want today – and tomorrow,” says Sarah Widmeyer, Managing Director and Head of Wealth Strategies, CIBC. “Whether the goal is to eliminate debt, save more, or retire early, you can achieve success with a financial plan.”

Key poll findings include:

  • 54 per cent of Canadians surveyed have a financial plan, with
    • 64 per cent of them having a long-term plan that identifies their savings goals and the steps to achieve them;
    • And 36 per cent who describe it as only a budget they review regularly, a short-term plan or ‘other’.
  • 46 per cent of Canadians surveyed do not have a financial plan
    • with 42 per cent of them saying they ‘have a pretty good idea’ and don’t need to write it down.
  • When thinking about retirement, just over half (51 per cent) are most worried about increasing health care costs, 45 per cent are concerned about how to manage unexpected expenses, and 43 per cent worry that they won’t have enough money to live the life they want.

‘Life gets in the way’

According to previous CIBC polls, ‘paying down debt’ has been the top financial priority for Canadians for seven straight years, indicating few people are making headway on their goals.

“We all aim to have a sufficient nest egg for retirement and money to handle the unexpected, but everyday life has a tendency of getting in the way,” says Ms. Widmeyer. “By setting out a clear path to your goals, a financial plan can help you stay on track. It also gives you the confidence to manage surprises, so that setbacks don’t put your retirement dreams and other goals at risk.”

The poll finds that having a financial plan in place makes Canadians feel more confident in their ability to manage unexpected changes in their finances. Additionally, those who have a financial advisor (61 per cent) also feel better able to manage setbacks. The poll surveyed Canadians with household incomes above $100,000.

A financial plan and a budget are not the same: But both are important

The poll findings show that even among those who do have a financial plan, more than a third (36 per cent) appear to be confused about how it differs from a budget, pointing to a limited understanding of the full value and purpose of a financial plan.

“While budgeting and financial planning go hand-in-hand, a budget alone is insufficient in crafting the life you want in the future,” says Ms. Widmeyer. She adds that confusing a budget with a financial plan may leave Canadians ill-prepared.

Ms. Widmeyer describes a financial plan as a clear, written report detailing an individual’s personal goals, financial needs and priorities in areas such as income and expenses, taxes, mortgage planning, education needs, retirement, estate planning, and insurance. A financial plan also incorporates assumptions like inflation, the time to a goal and expected rates of return, which many may miss on their own, she adds.

“There are many things to consider depending on your life stage, income and lifestyle expectations,” says Ms. Widmeyer. “Is it better to pay down debt or save? Are you saving enough? Could you possibly retire earlier than you thought? These are some of the questions a financial plan can help you answer and where the real value of a plan lies.”

Tips to get started

For those who are unsure of where to start, Ms. Widmeyer offers these tips:

  1. Identify your short-term and long-term goals
  2. Take a detailed look at your budget
  3. Create a plan setting measurable and time-based goals
  4. Review your progress annually

“Now is the perfect time to speak to a financial advisor who can help you identify and prioritize your goals and set a plan to achieve them,” adds Widmeyer. “The keys to success are to have a plan in place, review your progress annually, and then make any changes as needed. This will keep you on track to achieve what’s important to you.”

A plan for ages

  • In your 20’s and 30’s – When you’re starting out, it’s important to manage debt effectively and keep an eye on savings. Taking advantage of the Home Buyer’s Plan can help you build a down payment for your first home, while saving through a TFSA could save your RRSP contribution room for years when you’re likely to earn a higher income. Read Paul and Andrea’s story.
  • In your 40’s and 50’s – For the sandwich generation, it’s all about balance. Competing priorities pull you in different directions, and can make it difficult to stay on track. Look for ways to maximize savings through Registered Education Savings Plans, and be sure to balance your portfolio to fit the right time horizon, risk tolerance and accurately forecast future cash flow. Read Xue and Mei-Lien’s story.
  • In your 60’s and beyond – For those at or nearing retirement, it’s important to understand your new income needs, lifestyle and plan for any unexpected health costs in order to set a clear course for the years ahead. Knowing the right time and amount to withdraw from Registered Retirement Income Funds to reduce tax liabilities and continue saving for later years, while discussing your estate can help protect your wealth and minimize taxes. Read Andrew and Jennifer’s story.

KEY POLL FINDINGS:

Percentage of Canadians surveyed with a financial plan detailing out financial decisions and activities for their household:

Yes,    

54%

No

46%

Top reasons Canadians surveyed without a financial plan feel they do not need one:

I have a pretty good idea of what I need to do and don’t need to write it down

42%

My situation is pretty simple and I don’t see the need for one

26%

Canadians’ surveyed top three most important goals for having a financial plan:

Saving for retirement

53%

Eliminating credit card or line of credit debt

38%

Paying off  their mortgage sooner

38%

Top retirement concerns among Canadians surveyed:

Increased health care costs

51%

Managing unexpected costs (e.g. health-related expenses, long-term care)

45%

Not having enough money to live the life I want

43%

Confidence of those with or without a financial plan in their ability to manage an unexpected life event or scenario:

Have a
financial
plan

Do not
have a financial
plan

Have a
financial
advisor

Do not
have a
financial
advisor

Someone in the household losing their job suddenly

70%

58%

69%

57%

A family illness or disability that left me or a family member unable to work for a few months

77%

72%

78%

68%

Medical expenses not covered by my insurance provider

77%

71%

78%

67%

A sudden, unexpected financial emergency (e.g. urgent home renovation, car repairs)

88%

80%

87%

80%

Divorce

51%

48%

52%

46%

Growing family

57%

59%

60%

55%

Financial Plan Poll Disclaimer:
From January 5 to 9, 2017, an online survey was conducted among 1,007 Canadian adults with a household income greater than $100,000 who are Angus Reid Forum panelists. For comparison purposes, a probability sample of this size has a margin of error of +/- 3%, 19 times out of 20.

About CIBC
CIBC is a leading Canadian-based global financial institution with 11 million personal banking and business clients. Through our three major business units – Retail and Business Banking, Wealth Management and Capital Markets – CIBC offers a full range of products and services through its comprehensive electronic banking network, branches and offices across Canada with offices in the United States and around the world. Ongoing news releases and more information about CIBC can be found at www.cibc.com/ca/media-centre/ or by following on Twitter @CIBC, Facebook (www.facebook.com/CIBC) and Instagram @CIBCNow.

SOURCE CIBC – Consumer Research and Advice

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