Local MPP Randy Pettapiece says there will be no relief from rising insurance premiums for municipalities, in light of a recent provincial government announcement.
The province recently advised the Association of Municipalities of Ontario they government will not be introducing any joint and several liability reform measures.
“I am extremely disappointed that the government has refused to take any action to assist municipalities on this issue,” stated Pettapiece in a press release.
Pettapiece has been pushing the provincial government to reform the joint and several liability model – an issue he states is driving up municipal insurance premiums and, in turn, property taxes.
AMO President Russ Powers stressed the need for reform in his opening speech at the convention on Aug 18.
“We need to regain control over insurance costs by placing fair and reasonable limits on municipal liability. This week the Ontario government informed AMO that it would not act on this,” he said.
Under the current joint and several liability model, if two or more parties are found at fault or negligent in a lawsuit, damages can be recovered from any defendant, even if the party is deemed only one percent responsible. This is putting municipalities on the hook when other defendants lack the ability to pay.
In February, Pettapiece introduced a private member’s motion, passed by all parties, calling for reform. His motion won statements of support from the Association of Municipalities of Ontario (AMO), the Insurance Bureau of Canada, insurance brokers, and over 210 municipalities across Ontario.
He followed up by briefing the attorney general upon her appointment in March, and asking for updates during question periods in April and July. In her July response to the legislature, Minister Madeleine Meilleur stated, “two options are under consideration. One of the models is modification of joint and several liability … another model will limit municipal liability for negligence in road maintenance to two times the proportion of damage.”
Despite extended government consultations and efforts by municipalities, insurers and AMO, today’s announcement signals that the government will not be adopting either of the studied models, instead maintaining the status quo, risking increased insurance rates and property taxes.
“Rising insurance premiums have been an issue since I was a councillor in North Perth,” said Pettapiece. “It is unacceptable that after years of consultation, the government still refuses to reform the current system.”
