Service NL
July 30, 2019

Working Together to Help Stabilize Insurance Rates

On August 1, 2019, several changes to the Automobile Insurance Act and the Insurance Companies Act will come into effect.

Under the Automobile Insurance Act, uninsured motorists involved in an accident prior to August 1, 2019 are eligible for compensation from the Uninsured Automobile Fund. Where an accident occurs on or after August 1, 2019, uninsured motorists will be prohibited from accessing the uninsured fund for payment of damages for injuries arising from the accident. 

The Insurance Companies Act will now include a reduction of commission rates for taxis and limousines. Previously, Facility Association paid brokers a six per cent commission rate for taxis and limousines. The commission rate for taxis and limousines is cut in half, from six per cent to three per cent, which must be reflected in the next rate filing from Facility Association.

Facility Association have also been directed to include in its Plan of Operation the establishment and operation of an all-comers risk sharing pool for members in the province. A risk sharing pool would allow drivers who are currently insured through Facility Association but are not considered to be the highest risk to be insured through the regular market while allowing insurance companies to share that risk with all insurers.

The Provincial Government is also committed to providing better value for consumers by recognizing new technology in the insurance industry. In certain cases this does not require changes to insurance legislation, such as allowing insurance companies to offer Electronic Proof of Auto Insurance (EPAI). Effective July 29, 2019, documents may be delivered electronically through smart phones, apps, email or tablets should a person consent to EPAI if offered by an insurance company.

These changes are part of the broader amendments intended to help stabilize insurance rates while enhancing consumer protection to benefit the people of the province. Amendments to the Automobile Insurance Act and the Insurance Companies Act were made as a result of public consultations on automobile insurance in 2018, consultations with stakeholders and the review received from the Board of Commissioners of Public Utilities (PUB).

“Stabilizing insurance rates requires a suite of solutions that, over time, will help realize benefits for the consumer. We worked closely with all stakeholders to arrive at these changes. It is important that we maintain our focus on safe driving habits, as less accidents are a contributing factor in helping decrease insurance rates.”
Honourable Sherry Gambin-Walsh
Minister of Service NL 

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Learn more
Electronic Proof of Auto Insurance - Superintendent’s Bulletin

Provincial Government to Introduce Legislation to Eliminate the Retail Sales Tax on Automobile Insurance

Changes to Automobile Insurance Legislation Provide Better Value for Consumers

Provincial Government Releases Results of Public Consultations on Automobile Insurance

The Way Forward

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Media contact
Krista Dalton
Service NL
709-729-4748, 685-6492

2019 07 30                              9:45 a.m.