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Minister responds to comments by auto insurance advocacy group Walter Noel, Minister of Government Services and Lands, said there is no evidence that publicly operated automobile insurance systems provide lower premium rates. He was responding to a release by the group Advocates of Fair Auto Insurance suggesting that government investigate establishing a public auto insurance system in this province. "The experience in Canada does not demonstrate that public insurance is cheaper than private insurance," the minister said. "Costs are determined primarily by the kind of benefits provided. Provinces which do not provide compensation for pain and suffering generally have lower premiums than provinces which provide such compensation." In its release dated February 4, 2003, Advocates for Fair Auto Insurance produced figures showing lower rates in three provinces with public insurance systems. Minister Noel said: "Manitoba, Saskatchewan, and Quebec have government-run no-fault insurance. Rates are low in these provinces primarily because there is no compensation for pain and suffering. British Columbia has a public system, but because compensation is provided for pain and suffering premiums in that province are high." Minister Noel also said: "The group also indicated that a person has to be insured for two years in order to qualify for the death benefit in our province. That is incorrect. There is no waiting period. Their suggestion that there is only $1,000 provided for funeral expenses here is also wrong. That amount is simply a minimum under Section B, Accident Benefits Coverage. Insurance companies are free to provide more. "Similarly, the quoted medical benefit limit of $25,000 is the minimum provided under Section B, Accident Benefits Coverage. There is no such limit under third party liability coverage in this province. "The rates shown in the bar graph released by the Crown Investments Corporation of Saskatchewan is also inaccurate. The rate indicated for St. John�s is $3,292. In fact, our rate is about half that amount. Contrary to the chart, British Columbia has among the highest rates in the country, and Quebec has among the lowest rates." The escalating costs of automobile insurance will be one of the topics discussed at a Town Hall forum being hosted by Minister Noel at 7:30 p.m., Tuesday, February 18, 2003, at the Holiday Inn on Portugal Cove Road, St. John�s. The forum will consist of presentations by insurance and legal representatives, the consumer advocate, and the minister. Citizens are invited to come and have questions and concerns addressed. Media contact: Sam Whiffen, Communications, (709) 729-4860. 2003 02 07 5:00 p.m. |
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