A Windsor law firm is taking on the insurance industry.
Jennifer Bezaire, a partner at Greg Monforton and Partners has announced that she and her firm are members of the consortium of lawyers formed to start a series of class action lawsuits against six Ontario auto insurers and their regulator the Financial Services Commission of Ontario (“FSCO”).
“This $600 million lawsuit seeks to force these insurers to pay back HST wrongly charged to policyholders injured in car crashes," Bezaire said. "It also seeks an injunction prohibiting these insurers from continuing their practice against the direction of FSCO and case law from the License Appeal Tribunal”.
Pointing to a FSCO Bulletin Bezaire adds that the HST is a tax and is not part of the benefit limits and the FSCO could not have been clearer. However, she said these insurers unilaterally took the position that HST should be deducted from clients’ benefits. Bezaire adds that a few weeks ago, Aviva Insurance wrote to a Windsor accident victim saying “Aviva intends to maintain its position that any applicable HST is inclusive of the benefit limit”. Bezaire goes on to say these insurers seemingly ignored FSCO and where they could, refused to pay HST or they used HST to wrongfully reduce benefits, resulting in less care for injured policyholders.
“FSCO turned a blind eye to the unfair industry practices, even when it knew people were being unfairly denied benefits” said Bezaire. “In response to repeated complaints, FSCO acknowledged the practice and indicated that the offending insurers had been told to stop the practice and had promised to follow the directive."
However, she said insurers continued ignoring FSCO and the practice continued.
“This deceitful action by insurers appears widespread and our investigation of other insurers continues” added Bezaire.
A toll free hotline has been set up at 1-866-540-2747 and a website is available at autohstclassaction.com to receive public complaints against any insurer who has wrongfully reduced benefits by the amount of the HST.
Bezaire adds that all information provided will be kept confidential.