Province Launches Public Consultation on Auto Insurance
ENVIRONMENT/LABOUR--Province Launches Public Consultation on Auto Insurance
The provincial government is asking Nova Scotians for their input on the issue of auto insurance rates.
Environment and Labour Minister Ron Russell today, March 18, launched a discussion paper as the latest step in the province's plan to help provincial motorists deal with the rising cost of auto insurance.
In February 2002, the department asked the Utility and Review Board to examine private passenger automobile insurance rates to determine if those rates are excessive, inadequate, unfairly discriminatory, or otherwise unreasonable. The hearing concluded in November and a report is expected later this year.
"We realize the impact that increased auto insurance rates have had on Nova Scotians, especially students, small businesses, working families, and seniors. This paper is the latest in a series of steps we have taken over the last year to address this issue," said Mr. Russell.
The discussion paper identifies issues and possible solutions to help address consumer and industry concerns. It provides context and understanding on a variety of policy issues, and asks some specific questions on each issue. Some of the areas addressed include the right to sue, accident benefits, and underwriting rules.
"Consumers of auto insurance are the most important stakeholders in this issue. Your participation in this process will help shape the future improvements for our auto insurance system," said Mr. Russell. "We're going to manage this process with the help of a consumer advocate."
The minister plans to appoint an individual to the new position in the next few weeks. The person will manage the consultation process, including receiving and sorting through responses, identifying possible solutions, and analyzing the financial impacts and benefits of possible improvements to the province's insurance system.
The public consultation is part of a plan designed to develop appropriate solutions to this complex regional issue. In December 2002, the province produced a Consumer's Guide to Buying Auto Insurance. It has been accessed by hundreds of Nova Scotians online and through Access Nova Scotia centres. Staff have also been working with their colleagues in other Atlantic provinces to discuss regional concerns, including the possible development of harmonized auto insurance legislation.
During the past several months, the department's office of the superintendent of insurance has received an increased number of calls from Nova Scotians concerning auto insurance. Staff of the department's office of the superintendent of insurance supervise the business of insurance in the province and enforce the Insurance Act. They respond to complaints, inquiries, or information requests about insurance matters.
Copies of the new discussion paper are available at any Access Nova Scotia Centre, by calling in Halifax at 424-5851 or toll free at 1-800-898-7668, or by visiting the Department of Environment and Labour's Web site at www.gov.ns.ca/enla/ .