The excerpted article was written by – · CBC News ·
Alberta’s superintendent of insurance issued more than $1.5 million in fines against 16 auto insurance companies for overcharging motorists for coverage, but what hasn’t been revealed is how much extra money drivers had to pay.
The Insurance Bureau of Canada and several of the penalized companies say the money has already been refunded to drivers.
The TD Bank Group, which includes Primmum Insurance, Security National Insurance Company and TD Home and Auto Insurance, received $885,000 in fines, the highest amount among all of the companies that were penalized.
The TD Bank Group issued a statement to CBC News saying the overcharges were the result of a system error that affected some customers’ policies. The company says the error was disclosed to the superintendent of insurance and “all impacted current and past customers” were reimbursed with interest.
“We regret the inconvenience this may have caused some of our customers and have taken all measures to correct our system to ensure customers have the right coverage that fits their specific needs and circumstances,” said the statement.
Intact Insurance was fined $165,000 over the four-year period, the second highest among the penalized companies. Economical Insurance and its affiliate Sonnet Insurance were fined the same amount. The company said the error was the result of a technical issue and anyone who was overcharged was given a refund.
“This related to a technical error, which until early 2019 impacted a small number of our customers through both overcharges and undercharges on their premium,” said Paul MacDonald, an executive vice-president with Economical Insurance.
“As soon as we became aware of the error, we fully refunded any overcharged amounts to customers, self-reported the situation to the superintendent of insurance in Alberta, and enhanced testing with a view to preventing this type of error from happening again,” said MacDonald.
Intact Insurance also provided a statement to the CBC News.
“From time to time, during our rigorous audit processes, we discover errors that unintentionally result in an insurance rate being higher or lower than the rate that is filed with our various regulators.”
“We take these issues very seriously and upon discovery we work to make it right. This includes reporting discrepancies to the regulators where necessary and providing our customers with a refund of any amounts overcharged plus interest.”