NLIS 1
November 27, 2002
(Government Services and Lands)

 

Minister comments on New Brunswick Insurance Report

Walter Noel, Minister of Government Services and Lands, today commented on New Brunswick�s Select Committee report on Private Passenger Automobile Insurance released on November 22.

Minister Noel said: "Our officials are analyzing the report in detail. However, our initial impression is that there is little being proposed which is likely to reduce insurance rates very quickly, while a number of recommendations such as the mandatory arbitrated resolution process, increased accident benefits and increased minimum coverage could cause prices to rise.

"A number of their suggestions relate to initiatives we have already taken, including the appointment of a consumer advocate, increasing impaired driving penalties, enhancing the graduated drivers licensing program, and endeavouring to computerize the exchange of information between motor registration and insurance companies in order to reduce uninsured driving. Other proposals will be included in the reform bill we will soon be tabling in the House of Assembly.

"Unfortunately, the committee has not advised banning the use of hand-held cell phones by drivers which we are about to do. And their proposals to require companies to do business in all territories and regulate how and when they may leave the province could discourage companies from doing business there.

"The select committee did not make any recommendations with respect to options such as offering a choice of restricted or unrestricted tort coverage, or restricting the right to compensation for soft tissue injuries, which the insurance industry contends would be the most effective way to reduce claims and insurance costs.

"All of the Atlantic Provinces are facing similar challenges in trying to improve safe driving, reduce the cost of accidents, and minimize rate increases. Newfoundland and Labrador is the only province which has begun legislating change."

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

2002 11 27                                       11:05 a.m. 


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