Noel says newspaper ads regarding Insurance Reform are misleading 

Government Services and Lands Minister Walter Noel says government is not asking citizens if they want a "no-fault" automobile insurance system. 

Recent newspaper ads, and some commentators, have suggested proposals in the consultation paper on automobile insurance reform constitute a �no-fault' system.

Noel says: "Nothing could be further from the truth. We are not proposing a �no-fault' system which would eliminate the right to sue. We are simply asking citizens to consider the merits of a restricted tort system which would limit the right to claim for pain and suffering due to less serious injuries, including soft tissue, which do not result in financial loss.

"Under such a system, claims for financial loss, such as medical fees and lost income, would still be paid. And compensation for pain and suffering would continue to be paid when injuries are of a permanent and serious nature. 

"Currently, approximately 70 per cent of Canadians are subject to either a restriction on the right to sue for the pain and suffering component of a claim, or have no right to sue for pain and suffering.

"These measures were adopted in other jurisdictions to help control the cost of insurance by reducing claims for less serious injuries, discouraging abuse, and eliminating some legal costs. 

"If the restricted tort option were to be adopted, government could mandate an immediate reduction in third-party liability rates, estimated at 35 per cent. The insurance industry is warning that in the absence of such change, rates will rise dramatically. Consumers have to make a choice. We will only make changes people want, and only if savings can be guaranteed.

"We are also making significant efforts to reduce accidents, encourage safe driving, increase penalties and control costs. These measures have broad public support. 

"Some of the insurance proposals are complex and complicated. It is difficult to determine what makes sense even with the best of information. We encourage responsible and accurate debate to help people make the best choices."

Government's proposals are available on the department's web site www.gov.nl.ca/gsl/consultation, or by calling (709) 729-5661.

Written comments on the proposed changes are invited to be submitted to the minister's office by November 30, 2001. Comments may also be sent by e-mail to autoinsurance@gov.nf.ca

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

2001 11 14 12:45 p.m.