Atlantic ministers responsible for automobile insurance to meet in St. John�s

Atlantic region ministers responsible for automobile insurance will meet in St. John�s Friday, March 22 to discuss what can be done to prevent steep premium increases.

The meeting was initiated by Walter Noel, Minister of Government Services and Lands for Newfoundland and Labrador, because of common problems with rising costs.

Other ministers attending will be David Morse, Minister of Environment and Labour, Nova Scotia; Jeffrey E. Lantz, Attorney General, Prince Edward Island; and Bradley Green, Minister of Justice, New Brunswick.

Minister Noel said: "The automobile insurance industry is regulated by government because drivers are required to be insured. Prices are regulated in different ways in various jurisdictions. All Atlantic Provinces have similar systems. We have a lot in common. Perhaps we can cooperate more to develop better ways to provide proper insurance at affordable rates.

"The ministers will discuss problems in our respective provinces, examine how insurance is provided in other jurisdictions, and consider how we may be able to work together in meeting public needs. We all have the same objectives. We want to reduce accidents and claim costs, keep premium rates reasonable, and ensure adequate compensation for personal injuries and financial losses.

"Recent studies undertaken by the Insurance Bureau of Canada indicate prices are subject to the same cost pressures in all provinces. The industry is advocating restrictions on compensation for minor pain and suffering claims to moderate costs. Approximately 70 per cent of Canadians now have varying degrees of such restriction. Many citizens, and certain segments of the legal community, feel this would be giving up too much even if it helped keep prices lower than they would otherwise be.

"When it became obvious increasing rates were a real problem last year, I issued a consultation paper to encourage public discussion about what citizens feel government could do to improve our system. We invited comment on 51 proposals, most of which have strong support. My officials are now in the process of analyzing the responses received. We hope to be making the information available by the end of February."

Minister Noel said: "Our province probably had a bit of a headstart in dealing with this issue, but the other provinces are now holding hearings as well. I will share our work with my colleagues, and I look forward to learning from their experiences and ideas. I hope we can identify measures which will enable us to make changes people want."

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

2002 02 12                          4:50 p.m.