Dog bites in the three Canadian provinces in which State Farm operates chewed up slightly more than $1 million in claims costs last year.
In 2011, State Farm paid out $917,670 for 25 claims in Ontario, $99,800 for the two claims in Alberta and there were no dog bite claims reported in New Brunswick. The company reported its dog bite claims in May 2012, in advance of Dog Bite Prevention Week, which runs from May 20 to 26.
Ontario’s 2011 total was approximately 39% higher than the $659,786 paid out for 19 claims in 2010. Overall, the highest claims toll was in 2007, when the insurer paid out almost $1.2 million for these sorts of claims.
Almost 3,800 dog bite claims across North America in 2011 prompted claims costs that topped $109 million.
State Farm cites estimates from the Insurance Information Institute (I.I.I.) that U.S. insurers south of the border paid almost $479 million in dog bite claims, representing more than one-third of all homeowners insurance liability claims payments.
An analysis of homeowners’ insurance data by the I.I.I. found the average cost of dog bite claims was $29,396 in 2011, up 12.3% from $26,166 in 2010. From 2003 to 2011, the cost of the average dog bite claim increased by 53.4% from $19,162 to $23, 396 – attributed to increased medical costs and size of settlements, judgments and jury awards given to plaintiffs.
A dog’s tendency to bite depends on such factors as heredity, obedience training, socialization, health and the victim’s behaviour, notes the statement from State Farm. The insurer does not refuse insurance based on the breed of a customer’s dog, but does require customers to answer questions about their dog’s history on a homeowner insurance application.
Courtesy of Canadian Underwriter magazine www.canadianunderwriter.ca
Sincerely, The Insurance Advisors @ Guthrie Insurance Brokers Ltd
Toronto – (416) 487-5200 – 1-888-310-SAVE (7283)
www.GuthrieInsurance.com - info@GuthrieInsurance.com
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Insurance ‘fraud follies’ for 2012
May 22, 2012
With insurance fraud in the spotlight, the Insurance Bureau of Canada (IBC) recently released its highlights of head-scratching antics by scam artists.
“There’s nothing funny about insurance fraud,” the IBC noted. “But sometimes you can’t help but laugh at some of the outrageous scams and schemes.”
Recognizing March as Fraud Awareness Month, the bureau listed four examples of fraud follies.
• Repo Man: A man reported his car had been stolen and filed a claim with the insurer, but the investigator contacted the finance company. It was repossessed and towed away due to non-payment. Claim denied.
• Oh Deer: A man told an insurance company he hit a deer and badly damaged his car. Upon questioning, he changed his story, saying it might have been a rabbit or groundhog. Or say, for example, a (presumably inanimate) fence or post. Claim denied.
• Up In Smoke: A family’s house was gutted by fire, but a neighbour recalled seeing the wife’s car pull away shortly before the smoke appeared. Two weeks earlier, the wife had checked with her insurance agent’s office to ensure the policy was up to date and paid for. Claim denied.
• The Camera Never Lies: A man claimed he was rear-ended on one of Canada’s busiest highways and filed a claim for the damage. However, the car behind him had a dashboard-mounted camera and recorded the claimant reversing the car and causing the collision. Claim denied.
Courtesy of Canadian Underwriter magazine www.canadianunderwriter.ca
Sincerely, The Insurance Advisors @ Guthrie Insurance Brokers Ltd
Toronto – (416) 487-5200 – 1-888-310-SAVE (7283)
www.GuthrieInsurance.com - info@GuthrieInsurance.com
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With the increasing popularity of electrical powered conveyances, the Insurance Brokers Association of Ontario (IBAO) is warning consumers using vehicles such as scooters and electronic bicycles (e-bikes) that these vehicles are provided with limited or no liability coverage on a consumer’s insurance policy.
In a statement, IBAO CEO Randy Carroll said the association’s warning was prompted by an increasing number of advertisements at the dealer level stating that these bikes require no insurance.
“While this statement is in fact true, these vehicles still pose a real danger,” Carroll said. “Ontario citizens need to know that they may have no liability coverage if they get into an accident with one of these vehicles and they could find themselves without coverage if they cause property damage or worse, injure another person.”
Habitational policies exclude “motorized vehicles except for lawnmowers, other gardening equipment, snow blowers, wheelchairs and motorized golf carts on the golf premises.” However, a good number of policies fully exclude e-bikes and other such vehicles.
Editors note: Imagine the grief and financial consequences of hitting anyone, especially a child, with your “E” – bike, scooter, skateboard or segway? At the time of writing, there does not appear to be a standard method of insuring what could be a very considerable risk. This applies not only to the liability associated with causing injury or property damage to others, but also the risk of having the unit stolen or damaged. If in doubt, it is always best to check with your home insurer to set your mind at ease.
Sincerely,
The Insurance Advisors @ Guthrie Insurance Brokers Ltd
Toronto – (416) 487-5200 – 1-888-310-SAVE (7283)
www.GuthrieInsurance.com - info@GuthrieInsurance.com
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