First phase of Automobile Insurance Reform complete

The Minister of Government Services and Lands says the consultation paper Proposals for Automobile Insurance Reform has served to focus attention on safe driving and insurance issues. The deadline for submissions was last Friday. 

Minister Walter Noel said: "Hundreds of citizens have expressed their views and made submissions to government. I have spoken with many people myself. We have all learned a lot. We now have to assess what has been learned and shape a consensus for action. 

"We made 51 proposals to make driving safer and control insurance costs. Most appear to have broad support including insurance and legal. The most difficult challenge is trying to prevent excessive increases in insurance premiums. 

"There are many different auto insurance systems. All have advantages and disadvantages. There is no consensus on which is best. Indeed, there is a lot of disagreement about how particular provisions should be described and what level of benefits is desirable. I want to incorporate the best options available to ensure citizens of our province have good coverage at reasonable cost. But we will only make changes which have broad public support.

"The most contentious proposal has been for consideration of restricting the right to compensation for less serious pain and suffering claims. Seventy per cent of all Canadians are now subject to such restrictions. However, many people in our province clearly want to retain the right, despite the insurance industry's contention that it is the only way to significantly control premium increases. 

"We will only bring in whatever changes people want in order to control the cost of insurance. However, we will not be able to do much to keep rates from rising significantly unless we can reduce the cost of personal and property damages. This could only be accomplished by reducing the level of benefits and the cost of claims. 

"We will take strong new initiatives to increase safe driving, strengthen penalties for abuse, reduce impaired and uninsured driving, and make the insurance industry more efficient. Whether there can be any agreement on limiting claims is yet to be seen. 

"Our officials are assessing what we heard and we will determine next steps early in the new year.

"Submissions from people who had difficulty meeting the November 30 deadline will still be accepted. We encourage anyone who wishes to contribute to the process to do so as soon as possible."

Copies of the consultation paper are available on the department's web site at www.gov.nl.ca/gsl/consultation or by calling (709) 729-5661.

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

2001 12 04                            1:35 p.m.