Indiana Governor Mitch Daniels signed the bill that bans municipalities from charging accident response fees. The ban will take effect in Indiana on July 1, 2008. Senate Enrolled Act 81, a bill supported by the Insurance Institute of Indiana and other state and national insurance groups, passed the General Assembly on March 5. Indiana joins Missouri and Pennsylvania as the first states to ban such fees.
“This is a big win for Hoosiers, who can now rest easy knowing they will not be double-taxed on the worst of days,” Insurance Institute Chairman Joe Yeager said. “Being involved in an accident is bad enough. Receiving a bill from your town after the fact only compounds the problem.”
Proponents across the country touted these fees to cities and towns as a solution to police funding woes. Vendors convinced the local governing body to pass an ordinance allowing insurance companies to be billed when police come out to investigate a traffic accident, however most insurance policies in Indiana do not cover these fees. In turn, the cost is passed to an unknowing citizen, who is left with a bill ranging from $200-$500.
According to the Institute, Griffith, in Lake County, had once adopted the ordinance pitched by Cost Recovery Corp. of Dayton, Ohio, which billed out-of-towners involved in an accident a fine of more than $200. Following much scrutiny, the Griffith Town Council eliminated the ordinance. Several other Indiana cities and towns have rejected the offer from Cost Recovery Corp.
Senator Dennis Kruse (R-Auburn) and Senator Ryan Mishler (R-Breman) co-authored the bill, and the 2007 session’s author, Representative Ron Herrell (D-Kokomo), sponsored the bill and was instrumental in its passage.
The General Assembly passed this bill in 2007, but the bill was vetoed due to unrelated amendments that were added to the legislation.
The Insurance Institute’s efforts were also supported by the American Insurance Association (AIA), Independent Insurance Agents of Indiana Inc., National Association of Mutual Insurance Companies (NAMIC), and Property and Casualty Insurers Association of America (PCI).
Source: The Insurance Institute of Indiana
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