A bill to ban municipalities in Indiana from charging accident response fees gained the overwhelming approval of the Indiana General Assembly Saturday.

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

Reacting to the passage of HEA 1274, Indiana Insurance Institute President Steve Williams said state residents already pay property taxes to cover the cost of police and ambulances that respond to accidents.

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

He said several vendors across the country are touting these fees to cities and towns as a solution to police funding woes. The vendors convince the local governing body to pass an ordinance allowing insurance companies to be billed when police come out to investigate a traffic accident.

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

In Indiana, the towns of Cumberland, in Marion County, and Griffith, in Lake County, have adopted these ordinances. Several others, including Huntington, Indianapolis and Merrillville, have rejected these fees.

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

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

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

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

Don Griffin, director of personal lines for the Property Casualty Insurers Association of America, said his group is looking for success in both Indiana and Pennsylvania before making a national push for such laws.

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