Your insurance rates are going up
The bad economy and the upcoming Harmonized Sales Tax are the reasons for the increase
On Thursday September 24th, 2009Print
At today’s convocation, the Law Society of Upper Canada approved LawPRO’s 2010 insurance program plan. The economic climate and the impending implementation of the Harmonized Sales Tax has resulted in an increase in fees and a reduction in some discounts.
Here are some of the impending changes:
- A jump in the standard base premium to $2,950 — that’s up $500, which LawPRO breaks down as $150 to meet increased costs due to to HST, $150 to offset declining investment income and $200 for anticipated claims costs.
- A potential special levy of $450 per insured lawyer to cover a possible $10.2 million shortfall should the HST pass and be applied to outstanding, unresolved claims. LawPRO hopes to find a way to offset this fee.
- The $50 discount for filing claims electronically will be reduced to $25.
- The $150 discount for lump sum payments reduced to $50.
- The real estate transactions levy increases to $65 from $50.