HIGHWAY ROBBERY.

• Author: TOMLINSON, MARLA
• Position: Brief Article

Logging truck operators claim skyrocketing insurance costs are forcing them to park rigs

Northern Ontario is facing What could potentially become a huge blow to its economy, says Thunder Bay-Superior North MPP Michael Gravelle.

Logging truck operators are being forced to park their rigs, because of dramatic cbanges to insurance policies.

This situation was first brought to light in the Thunder Bay area by independent logging truck operator Sylvie Boughner. She received a letter in the mail from her insurance company saying they were unable to renew her policy.

She says she did not think too much of it until she started to call other companies regarding truck policies.

"At that time, I couldn't even get quote from any company," Boughner says. "Finally, when I did get a quote, it was three times what I'm paying how. The quotes I received at that time from companies who were even willing to consider insuring me were at a premium of $15,000 a year."

As other truckers' policies come up for renewal, they are facing the same situation, regardless of their record, she adds. Boughner says her record is clean, but she still faces this increase.

Gravelle is calling the situation a crisis as it affects the livelihood of many Northern Ontario residents.

"This has serious implications," Gravelle says. "It can be devastating for the whole industry on a large scale, and most certainly it has a huge negative impact on the north-western Ontario

The insurance companies are attributing the rate increase to a rise in the number of accidents involving logging and lumber trucks. The trucks written off in accidents can cost up to $200,000 to replace, says one Thunder Bay-based insurance broker who did not wish to reveal his name. This is not including any payouts for injured drivers.

Another concern insurance companies say they have is that some logging truck drivers are working three shifts a day in an effort to try to pay off their expensive rigs as quickly as possible, thereby increasing the risk of accidents.

"Some insurance brokers in northwestern Ontario say they are working on it," Gravelle says. "But, there needs to be some intervention by the (provincial) government soon, as they play a role in setting the insurance rates."

Both Gravelle and Boughner have written letters to various ministries for government intervention, as the province plays a role in the setting of facility insurance rates through the Financial Services Commission of Ontario.

Gravelle...