BC Finance Minister Colin Hansen has introduced Bill 6, the Insurance Amendment Act of 2009 to help improve protection for insurance consumers.

Minister Hansen said that the proposed amendments will improve coverage for consumers, ensure better access to documents, and enhance dispute-resolution mechanisms.

Under the amendments, consumers will have a 30-day grace period in which to pay overdue premiums for life and health insurance contracts and ensure their policies remain in force. Consumers will also be provided with a 10-day cooling-off period in which they can rescind a life or health insurance contract.

Insurance companies will be required to put in place internal complaint resolution procedures and offer consumers access to ombudsman-type services if disputes cannot be resolved internally. The limitation period in which consumers can make legal claims against insurance companies will be increased to two years from one.

The language of the Insurance Act has also been strengthened to ensure that fire coverage includes fires resulting from any cause, except those that are specifically excluded by regulation. In addition to improved protection, this change will provide consumers with more consistency across insurers. The amendments will also protect an “innocent co-insured” who may otherwise be denied coverage due to the wrongdoing of another person.

Further amendments respond to insurance industry needs by reducing red tape and improving efficiency by removing unnecessary requirements and clarifying the legislation. For example, there will now be one set of provisions applicable to all property contracts, thereby avoiding the need to classify the insurance contract as a fire contract or a multi-peril contract.