Minister Noel meets with mayors of Mt. Pearl, Paradise and St. John�s
to discuss automobile insurance reform

Walter Noel, Minister of Government Services and Lands, met with the mayors of St. John�s, Mount Pearl, and Paradise at Confederation Building today to discuss proposals for automobile insurance reform.

Minister Noel said: "I invited the mayors to meet to get a clear understanding of what they feel about the issue. Their views are particularly relevant because drivers in the Avalon region pay almost twice as much for liability insurance as other drivers in the province, and the councils of both Mount Pearl and St. John�s have passed resolutions about what action we should take."

Drivers on the Avalon Peninsula pay the highest rates for automobile insurance in Atlantic Canada, and much higher rates than in the rest of the province. The insurance industry contends this is attributable to the much higher incidence of bodily injury claims, especially for pain and suffering, in the Avalon region. This appears to be the most likely explanation in view of the fact that accident rates and claims for collision insurance are similar throughout the province.

"There was general agreement that there is a real need to address the issue of rising insurance costs, but there is no consensus about how it should be done. However, there is substantial agreement about adopting many of the proposals in the consultation paper.

"I felt the meeting was extremely productive and think we have set the stage for a better exchange of information and ideas regarding automobile insurance reform."

Also attending the meeting were Councillors Dennis O�Keefe and Art Puddister of St. John�s, Ed Grant of Mount Pearl, and Fred Thornhill of Paradise.

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

2002 01 29                         5:15 p.m.