Consumers Protected by Newly Appointed Board

Auto insurance consumers will be further protected by the newly appointed Nova Scotia Insurance Review Board. A chair and six other members were appointed to the new board today, Dec. 19.

The Nova Scotia Insurance Review Board will protect the public interest and ensure fairness in the insurance industry. The new board will review rates and rules and will monitor the system to ensure reforms are working for consumers. It will also monitor other insurance issues. This year the board will conduct a special review of the use of gender in risk classification systems. It will also examine rates and availability in property, casualty and liability insurance in the province.

"Establishing this board is an important part of the auto insurance reforms designed to protect consumers," said Ron Russell, Minister responsible for the Insurance Act. "These members bring strong legal, accounting and insurance skills to the board. Add to this their experience in governance and you have a strong team that I'm confident will do a great job for consumers."

The appointments include:

• Nelson Blackburn will be the chair of the board. Mr. Blackburn is a lawyer with many years in private practice, he is also current chair of the Labour Standards Tribunal. He has been appointed to the Nova Scotia Insurance Review Board for five years;
• Jo-Anne Nozick is a former corporate director of Nova Scotia Resources Ltd. She has significant administrative law expertise and has been appointed vice-chair for four years;
• Thomas Langley is a former vice-president of administration at St. FX University;
• Eric Schibler is recently retired from KPMG and is a member of the board of governors of the Atlantic Centre for Ethics and Public Affairs;
• Bruce Gillis is a lawyer in private practice in Middleton, with broad experience in insurance law;
• Avvie Druker is a former member of the insurance industry from Cape Breton. He has divested his agency after being in the business for 41 years. Mr. Druker is a member of the Employment Insurance Board of Referees;
• James Gunn is a charter member of the Insurance Institute of Canada and owns Survey Review Inc., a private audit and evaluation company.

Government has been dealing with the issue of rising auto insurance premiums for many months. On Nov. 1, it proclaimed new laws to lower insurance rates and improve protection for all Nova Scotians. The legislation reduces auto insurance premiums by 20 per cent effective Nov. 1, 2003. For consumers this means a 20 per cent rebate on the remainder of their current policy, as well as a 20 per cent reduction on their renewals based on rates in effect for insurance companies on or before May 1, 2003.

In addition to rolling back rates by 20 per cent, some other reforms include:

• protection against unfair risk classification;
• creation of the Nova Scotia Insurance Review Board to review and approve all future rate and rule applications;
• stricter penalties for dangerous drivers;
• a requirement to show proof of insurance to register a vehicle;
• stable rates until Nov. 1, 2004, and any increases after that time are subject to board approval;
• the option to purchase enhanced accident benefits (Section B coverage).