PCI Urges Indiana Governor to Sign Bill Outlawing Accident Response Fees |
|
|
|
Written by U.S. Insurance News
|
|
Sunday, 16 March 2008 |
The Property Casualty Insurers Association of America (PCI) wants Indiana to eliminate what it considers a "hidden double tax" on consumers.
PCI recently sent a letter to Gov. Mitch Daniels requesting him to sign bill SB 81, which would prohibit local governments from charging fees for responding to traffic accidents.
Greg LaCost, assistant vice president and regional manager for PCI, said his organization is "hopeful" that the governor will sign the bill into law.
"Many residents in Indiana have expressed their opposition to local governments attempting to impose a hidden double tax on consumers that ultimately increases the cost of insurance," LaCost explained. "As a taxpaying citizen, it is not unreasonable to expect local police and fire departments to respond to an automobile accident without having to pay extra for this service."
LaCost said that towns in Indiana, such as Porter, Munster and Merrillville, have rejected the accident tax. But if the governor signs SB 81, then motorists statewide won't have to worry about getting hit with hidden fees.
Last year the Indiana Legislature passed similar legislation, but because it contained an unrelated provision that the governor opposed, he vetoed the bill. However, the prospects for the governor signing SB 81 are better because the bill does not contain the language that in the past he objected to.
The issue of accident response fees is gaining attention in many states. Therefore, PCI is supporting legislation not only in Indiana but also Florida and Georgia that would ban fees for services that the local police and fire departments perform and are paid for through property and other local taxes.
LaCost explained the origin of these fees. In recent years some collection services have tried to capitalize on the pressure local governments are under to balance their budgets without increasing taxes. "Local officials are promised large windfalls if they enact a service fee charge back program when their police or fire departments are called upon to respond to an automobile accident," LaCost said. "However, in many cases the revenues generated have not outweighed the problems."
As LaCost pointed out, not only are accident response fees unnecessary because insurers pay all the appropriate bills and charges associated with an accident based on what is stated in the policyholder's contract, but the hidden fees add unnecessary costs to insurance coverage-and that ultimately affects the premiums consumers pay.
|
