By CRM Staff
Toronto, Ontario — February 4, 2019 — The Insurance Bureau of Canada believes changes need to be made to Newfoundland and Labrador’s insurance rates, and the national organization isn’t alone.
The NL Board of Commissioners of Public Utilities released a report that summarized the public hearings on auto insurance rates that transpired over the last year. Inside the report, the PUB highlighted ‘significant shortfalls’ in the current auto insurance system.
IBC explained that NL drivers will continue to have their pockets drained if changes aren’t made.
“Every day, the people of this province are telling our industry about the effect that the cost of auto insurance has on their household income,” said Amanda Dean, vice president, Atlantic, at IBC. “We need claims to cost controls in place, based on the evidence in the PUB report, to protect everyone who pays for an auto insurance policy. This means changing the current auto insurance system.”
NL drivers currently pay over $1,100 a year on average, compared to New Brunswick at $819 and Nova Scotia at $842. During the public hearing process, IBC made several suggestions on how to lower rates including a recommendation to cap pain and suffering awards for those with minor injuries.
“A minor injury cap would not take away the rights of people to sue if they are legitimately injured and require additional care,” said Dean. “In fact, reforms to the system would provide quicker access to rehabilitative care.
“The bottom line is that this province needs a sustainable, affordable product that helps injured people get better faster. Now that the government has the PUB report, it has the opportunity to make real change for drivers in the province.”