|Tow Trucks Off the Hook: MTO guarantees payment |
He said that the Ontario Ministry of Transportation (MTO) has decided to guarantee payment to tow truck operators, even if the people involved in an accident renege on the bill or skip town. Or don't have insurance. Or write rubber cheques.
This new MTO guarantee will end that reluctance, Nelson -- who heads up the Ontario Recovery Group (ORG) -- told the conference.
Now, if a qualified tow-truck company doesn't get paid within 30 days of the invoice, the Ministry will step in, pay the bill, adding surcharges and fees, and then will try to collect the money from the responsible parties.
To qualify for the program, the tow-truck operators must meet specific criteria. The operator must first complete and sign an MTO contract and be approved by the MTO; the tow operator has to try to collect the invoice and the effort must be documented, and the operator must promise to try to help the MTO recover the outstanding debt if the Ministry requests.
The program only applies to accidents that happen on provincial highways and for accidents involving vehicles with a GVWR of 6,000 kg or more.
According to a spokesman from the MTO, the new program is all part of the plan to speed up the re-opening of highways after collisions. To that end, the Ministry has struck a working group with the trucking industry, the tow-truckers and the police to study other ways to clear accidents faster.
Monday, November 26, 2007
Ontario Stepping In to Help Towing Companies
According to this story in Today's Trucking Online, the Ontario Ministry of Transportation has agreed to pay towing companies for bills incurred after accidents when the owners don't.
Posted by Cyndi Kight, Associate Editor of Towing & Recovery Footnotes at 9:32 AM