Province to Address Auto Insurance

The provincial government has called for an all-party economic development committee to examine rising rates for car insurance.

"Nova Scotians have the right to know that the rates they pay for car insurance are fair and justified," said David Morse, Minister of Environment and Labour.

He has asked the chair of the legislature's standing committee on economic development, Brooke Taylor, to call insurance industry representatives to account for the large increases in insurance premiums.

Mr. Morse will meet with his Atlantic counterparts this month to discuss the cost increases, which are of concern across the region. The meeting will take place in St. John's, Newfoundland and Labrador.

The economic development committee is scheduled to hear from the insurance industry on Feb. 5. Following the hearings, the department will examine other options, including referral to the Utility and Review Board.

Mr. Morse said he's looking forward to receiving feedback from the committee, but emphasized that no decision on action can be made until after all the relevant information has been collected and reviewed. This includes the Closed Claim File Study of the Insurance Bureau of Canada, which is not expected out until the end of this month.

The Financial Institutions Division of the Department of Environment and Labour is responsible for regulation of the credit union system, insurance, and trust and loan industries in Nova Scotia. Through the province's Insurance Act, insurance companies, agents and adjusters are licensed in Nova Scotia.