Decision #66493-86Q402

File: 66493-86Q402

Compliance issue

Complaint procedures — Failure to file complaint handling procedures with Commissioner
Insurance Companies Act, ss. 165(2)(f), 604(2)

A foreign insurance company failed to file its complaint handling procedures with the Commissioner as required under the Act.

Section 604 of the Insurance Companies Act stipulates that foreign insurance companies shall establish procedures for dealing with complaints made by persons having requested or received products or services in Canada. Section 604(2) specifies that these procedures must be filed with the Commissioner.

Compliance measure(s) taken

A Notice of ViolationFootnote 1  was issued and an administrative monetary penalty of $2,000 was imposed.

Compliance considerations

The insurance company was provided with numerous requests to file its complaint handling procedures. Despite these requests, it did not file its procedures. The insurance company filed its procedures only after receiving a Notice of Violation and an administrative monetary penalty.

Corrective measures taken by financial institution


Complaint handling procedures increase an insurance company’s accountability to its customers by providing consumers with a consistent process for resolving any concerns and/or complaints they may have. Having this process in place also benefits the insurance company by providing a system-wide ongoing analysis of any potential quality control issues that may need to be addressed internally and which may be detracting from customer satisfaction and business in general.

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