Auto insurance is one of the most widespread utilized insurances in Canada. Insurance provides protection from liability claims after accidents and is required for licensing a vehicle. The concept of why basic automobile insurance is compulsory for modern-day Canadians is justifiable, as it holds the wrongdoer accountable for the potential losses of others that they have inflicted (Lanzenauer, 2006). However, if you live in British Columbia, Saskatchewan, Manitoba, or Quebec, where there is a monopoly of public auto insurance, you probably have a strong distaste for this provincial government-owned enterprise. The public auto insurance is indeed a monopoly that exploits consumers, which seems counterintuitive since it is a government-run …show more content…
The unrestricted rate increases are ultimately abused by the corporations. For example, the Insurance Corporation of British Columbia has a system emplace for safe driving. The discount includes a 5% discount for each year you are claims-free, to a maximum of 43% (Claim Rates Scale, 2010). Although that seems appealing, in 2017 ICBC increased insurance rates by 4.9% and 5.5% in 2016, counteracting that discount (Compare car insurance quotes to get the lowest rates in British Columbia). In addition, an increase in insurance rates is predicted to increase by 42% by the year 2020 at the worst-case scenario and 15.8% at the best case. As well, since 2011 the basic rates have increased by 30%, indicating that the worst-case estimate is not that far fetched. ICBC attributes the drastic surge of claims, insurance fraud, injury claims to the source of rate surges. However, numerous sources have doubted this statement as British Columbia has the highest insurance rates out of all the public automobile insurances in Canada (Zussman, …show more content…
268). As seen with the unrestricted insurance rates, where the rate has increased from 11.4% in 2012 and approximately ~5% each following year (Compare car insurance quotes to get the lowest rates in British Columbia). A price parameter should be emplaced to hinder the monopoly power. Since determining the marginal cost would be extremely difficult, a price-cap regulation would be the most effective method of controlling the price increases. Under the price-cap method, the firm is allowed a maximum determined price increase each year. Usually, this figure is inflation minus productivity improvements. The productivity improvements provide incentives to reduce costs and increase efficiency to gain extra profits, promoting innovation. Under this situation, productivity improvements can include new ways to catch insurance fraud (Brander, 2014, p.
Engineers, contractors, and other businesses must be mindful of and knowledgeable of their legal obligations when performing their occupation or supplying a product. Negligence in the design or construction of a product that results in damage or bodily harm, or could result in damage or bodily harm, can result in liability for economic loss under Canadian Tort law. Engineers, architects, and contractors need to be respectful of their duty of care to ensure their product is precisely produced with no danger of negligence.
RBC first established its insurance platform in the early 1980s where it promoted creditor and basic travel insurance, as those were the few products that can be promoted by bank employees under Canada’s Bank Act. Through the acquisitions of various insurance companies, they eventually entered the life, health, property and casualty insurance markets; demonstrating significant growth in the industry and eventually being level in the playing field among other large insurance competitors (McLaren, Babin, & Schuster).
Lin, Z. (1998). Employment Insurance in Canada: Recent Trends and Policy Changes. Canadian Economic Observer, 11(7).
When I researched which sectors of the economy are monopolized, I had a lot of mixed feeling about each industry. For example, I like that our health care industry is monopolized by the government because ordinary Canadians pay less for health care and prescription drugs. However, I dislike the monopoly in the telecommunications sector because of the poor customer 's service and quality of the product i.e. network throttling. Although, I believe this type of monopoly is necessar·y to more our network infrastructure forward.
By 1971, all Canadians were guaranteed access important medical services regardless of income, employment, or health. Canada has one of the highest life expectancies and he lowest infant mortality rates of industrialized countries, which many attribute to Canada’s health care system. In 1984, the Canada Health Act was passed. This act added provisions that prohibited extra billing and user fees for covered services. To support the ten year plan, the federal government increased health care to the Canada Health Transfer from 2006-2007 until 2013-2014 to provide growth in federal funding. On the other end the United states private for profit insurers based our premiums on age, gender, health status, and pre-existing conditions only covering the healthiest people and avoiding the sickest individuals which in turn e...
The Canadian health care system, unofficially known as Medicare, is financed along sectoral lines. Certain sectors, which include all “medically necessary” hospital and physician services, are financed entirely through a single payer, publicly funded, universal insurance program (Lewis et al., 2001). Conversely, private financing—either through private insurance or out-of-pocket payments made by the individual—is permitted in supplementary sectors such as drugs, dental services, cosmetic surgery, home care, and long-term care (Steinbrook, 2006). This division of financing therefore prohibits the coverage of hospital and physician services using private financing. This forecloses the emergence of a parallel “two-tier” model of health care financing
One of the most egregious examples of insures finding loopholes is in Melissa Morelli’s story. According to the New York Times, a 13 year old girl named Melissa Morelli was “taken to the hospital, she was suicidal and cutting herself”, her mother says (Abelson). She was transferred to a psychiatric hospital and stayed there for more than a week. Her doctors told her mother that it was not safe for her to return home but the problem was is that her insurance company, Anthem Blue Cross, wouldn’t continue to pay for her to stay in the hospital. Her mother, Cathy Morelli, kept on trying to get them to agree to pay for her daughter’s treatment, but they wouldn’t agree. “It was revolving doors”, Ms. Morelli said (Ibid). She has been constantly going to her insurance company for over 5 months just to hear them reject to pay for the care...
Insurance is as ancient as Babylon. The first policy dates back to 2100 B.C.; specifically, it is the Code of Hammurabi. A loan from a trader made certain his valuable cargo traveled safe from the harm of thieves or storms (Marples). The term changed drastically through the ages, and insurance is now a mess of premiums, tiers, and co-payments. It may most commonly be known as a negative number on a check stub that ensures health and safety. There exists not one company that covers everything on just one plan, but a step forward may change that.
Involvement of private insurance companies leads to profit motive running in United States. Transformed healthcare in US into an industry whose goal is to make profit. Government does have limited control over private insurers.
Impaired driving is a very significant problem within our society. Impaired driving is defined in Canada as operating a vehicle (including cars, trucks, boats, snowmobiles and off-road vehicles) while under the influence of alcohol or drugs. It is recognized as a crime under the Criminal Code of Canada. Despite a sizeable drop in the impaired driving rate since the mid-1980s, impaired driving is the leading cause of criminal death in Canada. It is a major issue that is taken very lenient but is far more dangerous than people actually consider it to truly be. Driving under the influence does not only put the person operating the vehicle in potential danger and harm, but also has the potential to do harm towards innocent others. With this being said, the punishments regarding the accused’s conviction of crimes related to impaired driving should be far stricter than the current punishments in order to stop impaired driving within our flawed society. This stated, these are my following reasons as to why I believe that the punishments of impaired driving should be stricter.
For instance, Canadian values align with the concept that health care is a basic human right. Commissioner Roy J. Romanow, Q.C. states “Almost all Canadians I have heard from to date want to ensure that the poorest in our society have access to health care” (Romanow 9). Canadians do not want to change the current system because it truly represents their societal attitudes (Soroka). To illustrate, 85% of Canadians believe eliminating public health care represents a “fundamental change to the nature of Canada” (Soroka). Undoubtedly, Canadians trust in the system that they have. It is difficult to say otherwise when Canadians view Medicare as a defining feature of the Canadian identity (Romanow 3). However, the health system in the US is not as strongly tied to the principles of Americans. Rather, universal health care better complements the culture in America than the current system (Chua). A quote by the Institute of Medicine embodies this argument, saying that “Extending the social benefit of health insurance would help us make our implicit and explicit democratic political commitments of equal opportunity and mutual concern and respect more meaningful and concrete.” (Chua). For one, the United States often claims to be a land of equal opportunity, but those without health insurance are disadvantaged in society (Chua). Lack of health coverage leaves people at risk of intense financial strain. For example, medical debts contribute to almost half of all bankruptcies in the United States (Key Facts About the Uninsured Population). In addition, as previously discussed, the uninsured are much weaker in health. People without health coverage are up to 2.6 times more likely to be diagnosed late for cancer (Chua). It is not impossible to see how these factors cause one to have difficulty with simply contributing to society,
In his political journal of law, Gregory Odegaard states that “an increased percentage of insured drivers not only reduces insurance costs for all motorists, but also promotes public safety because fewer drivers will flee the scene of accidents” (A Yes or No Answer: A Plea to End the Oversimplification of the Debate on Licensing Aliens).... ... middle of paper ... ... Works Cited Barteldes, Ernest.
When trying to improve productivity for a company, one must first understand what it means to be productive and what it means to not be productive. Jonah classifies that, “I have come to the conclusion that productivity is the act of bringing company closer to its goal. Every action that brings the company closer to its goal is productive. Every action that does not bring a company closer to its goal is not productive” (Goldratt, 32). But when determining on what is productive and not productive, the actual “goal of the company must first be determined. “ If the goal is to make money, then an action that moves us toward making money is productive and an action that takes away from making money is non-productive” (Goldratt, 41). Alex has finally realized what it means for his company to be productive, but the key is to know how to see if the company is meeting the goal that is desired or in this case making money. There are certain measurements that can “ express the goal of making money perfectly well, but which also perm...
Secondly I noticed when I was in my car on my way to work was the license and the insurance that the government requires in order to operate a motor vehicle. The government requires that all drivers pass a drivers test to demonstrate that they are capable of operating a motor vehicle without harming themselves or others. When they pass this test they are giving a drivers license. If the person violates the laws of the road too many times or seriously this license can be suspended or revoked. The government also requires that the driver have insurance. Insurance is required so that in the event of an accident the parties involved in the accident can afford medical care.
Increasing Productivity of a Business Productivity is the measurement of the level of efficiency within a business. It measures the relationship between the level of inputs and outputs of a business. There are two types of productivity, identified as labour productivity and capital productivity. It is beneficial for a business to have high productivity levels since the more produced by a business the more it can sell therefore increasing the revenue for the business. It is also beneficial because a higher productivity means more products can be produced for the same cost (this is because each unit cost is lower) thus making more profit on each product.