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Towing and Vehicle Storage
Introductory Stakeholder Meeting
December 11, 2013
Today’s Goals
1.
2.
• Background and Context for the
Project
• Engagement approach and plan
going forward
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Background
▪ The Government is committed to protecting consumers and
reducing auto insurance rates.
▪ An auto insurance cost and rate reduction strategy.
▪ Target average auto insurance rate reduction of 15% over two
years.
▪ Broad set of measures to achieve this target, including protection
against auto insurance fraud.
 Regulation of towing and storage is part of this broad strategy.
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Context
▪ November 2012: Ontario Automobile Insurance Anti-Fraud Task
Force:
▪ Province-wide licensing for the towing industry through an Administrative
Authority.
▪
Amendments to the Repair and Storage Liens Act to reduce unreasonable
storage costs for vehicles damaged in a collision.
▪ August 2013: A Policy Statement made by the Minister of Finance
committed to further study.
▪ 2013 Fall Economic Statement committed to a province-wide system
to oversee the towing industry, review of vehicle storage and
collision repair practices.
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Context (cont’d)
▪ 2013 Coroner’s Inquest:
 2009 death of a driver who rear-ended a flat-bed tow truck on
Highway 403.
 Jury recommendations are likely to urge the government to
address safety issues: driver training; improved roadside safety;
regulation of the towing industry.
▪ Significant media attention.
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Let’s start the conversation…
To address:
▪Towing and Storage
 Explore oversight of the towing industry
 Potential amendments to the Repair and Storage
Liens Act
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Who we will work with
Municipal Sector
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Association of Municipalities of Ontario
City of Toronto
City of Markham
City of Mississauga
City of Vaughan
Association of Municipal Managers,
Clerks and Treasurers of Ontario
Northwestern Ontario Municipal
Association
Federation of Northern Ontario
Municipalities
Rural Ontario Municipalities
Association
Policing Sector
• Ontario Association of Chiefs of Police
Insurance Sector
• Insurance Bureau of Canada
• Canadian Association of Direct
Relationship Insurers
• CANATICS
• TD Insurance
• RBC Insurance
• State Farm Insurance
• Intact Insurance
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Who we will work with (cont’d)
Towing / Automotive Sector
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Provincial Towing Association (Ontario)
Ontario Recovery Group
Canadian Automobile Association of SouthCentral Ontario
Associated Canadian Car Rental Operators
Collision Industry Information Assistance
Ontario Trucking Association
Ontario Safety League
Canadian Finance and Leasing Association
Used Car Dealers Association of Canada
Trillium Automobile Dealers Association
Automotive Industries Association of
Canada
Canadian Collision Industry Forum
Other
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Fair Value Committee
Ontario Bar Association
Consumers Council of Canada
Fair Association for Victims for Accident
Insurance Reform
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Inside government
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Ministry of Consumer Services
Ministry of Finance / Financial Services Commission of Ontario
Ministry of Municipal Affairs and Housing
Ministry of Transportation
Ministry of Community Safety and Correctional Services
Ministry of Government Services
Ministry of the Attorney General
Ministry of Labour
Ministry of Training, Colleges and Universities
Ontario Motor Vehicle Industry Council
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Objectives
Consultation Process
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Inclusive and accessible
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Government is a key change
agent, but not the only one
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Access expertise
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Multiple inputs to:
 identify issues
 develop solutions
 seek consensus on
recommendations to government
Outcomes
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Protect consumers
Increase road safety
Reduce auto insurance fraud
Build on the strengths of the
towing and storage industries and
enhance the profession
Recommendations based on a
collective voice
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Key Roles and Responsibilities
▪ Government needs to…
 Enable experts to advise,
shape and inform a policy
framework.
 Bring together the right
advisors and experts.
 Coordinate the
development of a policy
framework.
▪ Stakeholders need to…
 Be willing to engage and
participate.
 Be the experts and feed
into the consultation
process.
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What we know about the towing
industry
▪ Towing industry in Ontario has more tow operators than any other
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province in Canada.
About 1,200 tow-truck operators, with 3,000 drivers (Provincial
Towing Association estimate).
Diverse industry:
 Services: collision, roadside assistance, heavy/recovery towing
 Scale: individual operators, large operators/chains and
collectives
While no overarching oversight, some areas are currently
regulated:
 MTO / MOL training and safe work environment
 MTO general vehicle safety
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Municipal licensing
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Municipal governments have authority to license and regulate businesses,
including tow truck businesses.
At least seven Ontario municipalities, including Toronto, Mississauga,
Brampton, London, Oro-Medonte, and Barrie, have tow truck licensing bylaws.
Most:
 Review criminal background checks for drivers and/or owners.
 Impose insurance requirements.
 Require drivers and/or owners to provide information about their
business transactions.
Other common provisions include maximum rates for towing services,
minimum quality standards for towing equipment, and client information.
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Establishing Stakeholder Advisory Groups
▪
The Ministry of Consumer Services will be establishing two advisory groups of
stakeholders (one on towing; the other on vehicle storage) to participate in the
next stage of consultations. Selection of stakeholders to sit on the advisory
groups will be based on the following criteria:
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The ministry will communicate more precise details of the next stage of
consultations (e.g. members of advisory group, dates for consultation meetings,
etc.) once they are confirmed.
If you would like to sit on one of the advisory groups, or suggest another
stakeholder who would be interested, please let us know.
▪
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Process and Proposed Timing of Consultations
1. Full day consultation meetings of the advisory groups
in January. Proposed timing:

Week of January 20th (tentative)
▪ Session 1: Half-day vehicle storage; half-day towing
▪ Session 2: Full day on towing
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Week of January 27th (tentative)
▪ Session 3: Full-day summary meeting on towing and
vehicle storage to finalize consensus recommendations for
government
▪ Any additional meetings (as necessary)
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Process and Proposed Timing of Consultations
(cont’d)
2. Opportunity to provide feedback at the following:
 E-mail: [email protected]
3. Report back.
 Ministry will report back to government and stakeholders on
proposed approach and next steps.
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Thank You
▪ Please feel free to send any further comments or
questions to:
[email protected]
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Panel discussion
▪ Panel Discussion: “From your
perspective, what do you see as the
major challenges in the towing and
vehicle storage industries and what
can be done to better protect
consumers?”
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