Minister Responds to Consumer Advocate's Report

ENVIRONMENT/LABOUR--Minister Responds to Consumer Advocate's Report

The minister responsible for auto insurance, Ron Russell, says many of the recommendations contained in the auto insurance report released today, Sept. 24, by consumer advocate George Jordan will be addressed in legislation that will be introduced in the upcoming session of the House of Assembly.

"The consumer advocate did a great job monitoring and listening to the concerns of Nova Scotians during the government's public consultation process. We have had ongoing meetings with Mr. Jordan throughout this process to make sure consumers' concerns are addressed," said Mr. Russell. "His input has been a key factor in shaping the government's response to the auto insurance problem."

The minister said government's goal continues to be an effective reduction in rates and increased protection for Nova Scotians.

"In response to the Consumer Advocate's Interim report we have already passed several changes to the current legislation that will allow us to make regulatory changes," said Mr. Russell. "These changes have addressed several protection issues that consumers had. The upcoming legislation will focus on providing consumers with rate relief and more protection, fairness and choice."

The minister thanked Mr. Jordan for the report, saying it was comprehensive and thorough and that it is a significant step in the auto insurance reform process. He is glad the consumer advocate will continue to build on this report and be vigilant looking out for the insurance concerns of Nova Scotians.

Government has been dealing with the issue of rising auto insurance premiums since February 2002, when it directed the Nova Scotia Utility and Review Board to conduct a rate review. In the months that followed, government hired a consumer advocate, developed education guides for consumers, held a public consultation, and introduced legislation to freeze rates and prevent unfair discrimination. It also conducted consultations, research, and analysis that would allow it to develop an appropriate solution for reforming auto insurance in Nova Scotia.