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Automobile Insurance in Ontario: Public Policy and Private Interests

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  • Rose Anne Devlin

Abstract

Recently the government of Ontario introduced a partial no-fault system for automobile insurance. One stated objective of this policy was to promote the public interest. Interestingly, the insurance industry was generally supportive of this decision. Is it possible that both society in general and the industry can benefit from no-fault automobile insurance? This paper examines the decision to implement no-fault automobile insurance in Ontario from the industry's perspective and from an overall welfare perspective. The paper argues that the industry was induced to lobby for no-fault automobile insurance provisions as a result of the government's prior regulation of insurance premiums. It was rational for the industry to want "cost restraints" in the presence of these "revenue" restrictions. In general, the available evidence suggests that the no-fault policy will not be welfare enhancing.

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Bibliographic Info

Article provided by University of Toronto Press in its journal Canadian Public Policy.

Volume (Year): 19 (1993)
Issue (Month): 3 (September)
Pages: 298-310

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Handle: RePEc:cpp:issued:v:19:y:1993:i:3:p:298-310

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Cited by:
  1. Dionne, Georges & Vanasse, Charles, 1997. "Une évaluation empirique de la nouvelle tarification de l’assurance automobile (1992) au Québec," L'Actualité Economique, Société Canadienne de Science Economique, vol. 73(1), pages 47-80, mars-juin.

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