Nova Scotians Get Auto Insurance Rate Relief
Environment and Labour (to April 1/08)
May 5, 2003 2:33 PM
The Nova Scotia government introduced a bill today, May 5, that
prohibits auto insurance companies from raising their rates. The
rate increase prohibition will stay in effect while the complex
issues and concerns over auto insurance are resolved. Rates
cannot be raised between May 1, 2003, and Jan. 1, 2004.
"This period of stabilization will allow us to complete our
public consultation process without the threat of further
increases," said Ron Russell, Minister of Environment and Labour.
"It's unreasonable to be conducting a review to determine if
rates are excessive, and still have insurance companies apply for
increases while that process is under way."
The bill also introduces provisions that will enable government
to enact regulations to prevent unfair underwriting rules. In
addition, the bill extends the period of time an insurance
company must wait before applying increases. After Jan. 1, 2004,
companies will have to wait 45 days before using new rates after
they are filed with the Utility and Review Board. The previous
waiting period was 10 days. Any company found guilty of breaching
these new provisions will face fines of up to $50,000 for each
offence.
"We're concerned that consumers, particularly seniors, are being
treated unfairly," said Mr. Russell. "This move will give
consumers some measure of relief while we complete our
consultation and deliver solutions to stabilize rates for the
long term."
Nova Scotians still have until May 15 to share their views and
ideas on this issue with the government. Submissions can be made
in writing to the Department of Environment and Labour and by e-
mail to autoinsurancereview@gov.ns.ca . Individuals can also call
the consumer advocate at 902-424-2794 or 1-800-898-7668.
FOR BROADCAST USE:
The Nova Scotia government introduced a bill today (May 5th)
that prohibits auto insurance companies from raising their rates.
The rate increase prohibition will stay in effect while the
complex issues and concerns over auto insurance are resolved.
Rates cannot be raised between May 1st, 2003, and January 1st,
2004.
Ron Russell, Minister of Environment and Labour, said the
government wanted to ensure fairness for consumers while this
complex issue is being studied. He said that this new legislation
will give consumers some measure of relief while government
completes its consultation and delivers solutions to stabilize
rates for the long term.
The public consultation on auto insurance is still accepting
written submissions until May 15th.
-30-
Contact: Valerie Bellefontaine
Environment and Labour
902-424-2575
E-mail: bellefva@gov.ns.ca
kjd May 5, 2003 2:30 P.M.
The Nova Scotia government introduced a bill today, May 5, that
prohibits auto insurance companies from raising their rates. The
rate increase prohibition will stay in effect while the complex
issues and concerns over auto insurance are resolved. Rates
cannot be raised between May 1, 2003, and Jan. 1, 2004.
"This period of stabilization will allow us to complete our
public consultation process without the threat of further
increases," said Ron Russell, Minister of Environment and Labour.
"It's unreasonable to be conducting a review to determine if
rates are excessive, and still have insurance companies apply for
increases while that process is under way."
The bill also introduces provisions that will enable government
to enact regulations to prevent unfair underwriting rules. In
addition, the bill extends the period of time an insurance
company must wait before applying increases. After Jan. 1, 2004,
companies will have to wait 45 days before using new rates after
they are filed with the Utility and Review Board. The previous
waiting period was 10 days. Any company found guilty of breaching
these new provisions will face fines of up to $50,000 for each
offence.
"We're concerned that consumers, particularly seniors, are being
treated unfairly," said Mr. Russell. "This move will give
consumers some measure of relief while we complete our
consultation and deliver solutions to stabilize rates for the
long term."
Nova Scotians still have until May 15 to share their views and
ideas on this issue with the government. Submissions can be made
in writing to the Department of Environment and Labour and by e-
mail to autoinsurancereview@gov.ns.ca . Individuals can also call
the consumer advocate at 902-424-2794 or 1-800-898-7668.
FOR BROADCAST USE:
The Nova Scotia government introduced a bill today (May 5th)
that prohibits auto insurance companies from raising their rates.
The rate increase prohibition will stay in effect while the
complex issues and concerns over auto insurance are resolved.
Rates cannot be raised between May 1st, 2003, and January 1st,
2004.
Ron Russell, Minister of Environment and Labour, said the
government wanted to ensure fairness for consumers while this
complex issue is being studied. He said that this new legislation
will give consumers some measure of relief while government
completes its consultation and delivers solutions to stabilize
rates for the long term.
The public consultation on auto insurance is still accepting
written submissions until May 15th.
-30-
Contact: Valerie Bellefontaine
Environment and Labour
902-424-2575
E-mail: bellefva@gov.ns.ca
kjd May 5, 2003 2:30 P.M.