April 4, 1997
(Government Services and Lands)

Changes made to Automobile Insurance Rating Territories

Ernest McLean, Minister of Government Services and Lands, said today that government has authorized the province's superintendent of insurance to change the boundary lines for Automobile Insurance Rating Territories 1 and 2.

This action was taken following Cabinet's review of a recommendation submitted by Rick Woodford, MHA - Humber Valley and chair of the Select Committee of the House of Assembly on Property and Casualty Insurance.

The province is currently divided into three rating territories for the purpose of determining automobile insurance rates.

The new Territory 1 comprises that part of the island east of Highway 202, being a line between the communities of Old Shop and Chapel Arm in Trinity Bay to the north and Long Harbour and Ship Harbour in Placentia Bay to the south.

The new Territory 2 is the remainder of the island portion of the province.

Territory 3, Labrador, remains unchanged.

Automobile accident rates and claims experience are different in various areas of the province. While the territories are set by the superintendent of insurance, insurance rate benchmarks are established by the Public Utilities Board.

Contact: Rick Callahan, Director of Communications, (709) 729-4860.

NOTE TO EDITORS:    A map showing the boundary between Territory 1 and
                    Territory 2 is available by contacting the
                    Communications and Consultation Branch at 
                    (709) 729-3610.