NLIS 1
December 18, 2001
(Government Services and Lands)

 

Survey indicates majority willing to restrict claims to control auto insurance costs

Walter Noel, Minister of Government Services and Lands, said today that a poll
commissioned by his department indicates that 63 per cent of Newfoundlanders and Labradorians would be willing to restrict their automobile insurance claims to keep premiums from rising.

The poll, conducted in November, asked the following question:

There has been some discussion recently concerning the need to stabilize auto insurance
rates, as the insurance industry has told the government that rates will increase
significantly if costs cannot be controlled. Which one of the following two statements
comes closer to your own thinking on this issue?

A. I would prefer to limit what I can claim on automobile insurance, if it meant that rates
would remain the same.

B. I would prefer to maintain the current allowances in terms of what I can claim on
automobile insurance, even if it meant that rates would increase.

(Responses to the question were rotated when asked.)

Sixty-three per cent chose option A, while 31 per cent chose option B. The rest of the respondents fell under Don't Know/No Answer; Other; Don't Own/Drive a Vehicle.

Minister Noel said: "Government released the consultation paper on automobile insurance reform because we realized there is widespread concern about the prospect of rising rates. Citizens want us to take action to make driving safe and affordable, and to make sure insurance provides good coverage at reasonable prices.

"This poll indicates the majority of people are prepared to consider restrictions on claims to keep premiums stable. However, it does not identify specific restrictions which might be acceptable. During the broad public debate we are having on the consultation paper, there has been serious disagreement regarding restrictions and the right to sue for compensation for less serious injuries. Many people have indicated they are strongly against any restrictions.

"While this latest poll shows citizens are prepared to consider restrictions, additional research would have to be done to determine what might be acceptable."

The Department of Government Services and Lands is now reviewing the responses to the consultation paper and considering next steps. Interested individuals or groups who had difficulty responding prior to the November 30 deadline are still encouraged to make their views known.

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

2001 12 18                            9:25 a.m. 


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