Deadline approaching for submissions on automobile insurance reforms

Walter Noel, Minister of Government Services and Lands, advises that the November 30 deadline for submissions on government�s automobile insurance reforms is fast approaching.

Government released its consultation paper, entitled Proposals for Automobile Insurance Reform on October 4, 2001. It is based on a report issued by a select committee of the House of Assembly and further study by officials of the Department of Government Services and Lands.

Minister Noel said: "There are too many accidents, too many personal injuries and too much property damage in our province, and government is prepared to take strong action to make driving safer, reduce accidents, strengthen penalties, improve insurance coverage, and control costs.

"We have already taken many actions to improve highway safety, but research indicates these measures alone do not substantially curb insurance rates.

"We introduced the graduated driver licensing program. We have regular spot checks on our highways. We intend to increase penalties for impaired and uninsured drivers. We have ongoing education and information programs. And, government is looking at a ban on hand-held phones while driving.

"Insurance rates are still increasing. Keeping them affordable is a difficult challenge. Policyholders pay the entire cost of insurance, and will benefit directly if savings can be achieved.

"Government is seeking to identify acceptable solutions to reduce injuries, damages and the cost of insurance, but we will only make changes citizens want.

"While there appears to be broad support for most of our proposals, the most contentious is the proposal to restrict pain and suffering claims for less serious injuries. Our objective is to keep rates affordable while providing reasonable levels of compensation.

"Insurance industry representatives are predicting increases as high as 50 per cent over the next several years.

"We are concerned about where insurance rates are and where they are going. Public liability rates are particularly high on the Avalon peninsula, almost twice as much as elsewhere in the province, and generally double the rates in Halifax, Saint John and P.E.I.

"I want to thank everyone who has participated in our vigourous debate and I encourage those, who have not yet done so, to make their views known by November 30. Through such actions we learn more about the issues and options."

Government's proposals are available on the department's web site at www.gov.nl.ca/gsl/consultation, or by calling (709) 729-5661. 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 23                          10:10 a.m.