A bill to ban municipalities in Indiana from charging accidentresponse fees gained the overwhelming approval of the IndianaGeneral Assembly Saturday.

The measure, which passed by unanimous vote in theDemocrat-controlled House and had only one vote against it in theRepublican-controlled Senate, is expected to secure the signatureof Republican Gov. Mitch Daniels.

Reacting to the passage of HEA 1274, Indiana Insurance InstitutePresident Steve Williams said state residents already pay propertytaxes to cover the cost of police and ambulances that respond toaccidents.

Vendors offering billing services push some towns “to chargetheir citizens again. This is not appropriate,” said Mr.Williams.

He said several vendors across the country are touting thesefees to cities and towns as a solution to police funding woes. Thevendors convince the local governing body to pass an ordinanceallowing insurance companies to be billed when police come out toinvestigate a traffic accident.

“Because most insurance policies in Indiana do not cover thesefees, the bill is passed on to the citizen, who is surprised with abill ranging anywhere from $200-$500,” he said.

In Indiana, the towns of Cumberland, in Marion County, andGriffith, in Lake County, have adopted these ordinances. Severalothers, including Huntington, Indianapolis and Merrillville, haverejected these fees.

Insurance companies have voiced fear that such fees wouldencourage people to leave the scene of an accident.

“An accident victim who is afraid of seeing a $400 police billmay leave the scene of an accident,” Mr. Williams said. “Anyordinance that encourages this behavior is bad public policy.”

He added that the ordinances the private vendors are convincingmunicipalities to pass also bring up several ancillary issues.First and foremost, they ask law enforcement officers to determinefault at the scene of the accident so the town can bill theat-fault driver.

“However, this violates the Constitutional right to due processthat includes a trial by jury,” Mr. Williams said.

Don Griffin, director of personal lines for the PropertyCasualty Insurers Association of America, said his group is lookingfor success in both Indiana and Pennsylvania before making anational push for such laws.