Province Delivers Lower Rates, More Protection for Consumers
Environment and Labour (to April 1/08)
September 26, 2003 10:28 AM
Drivers in Nova Scotia will receive the auto insurance rate
relief and increased protection they've been looking for with new
legislation introduced today, Sept. 26, by the provincial
government.
The legislation reduces auto insurance premiums by 20 per cent
effective Nov. 1. The legislative reform also provides better
protection, fairness and options for the consumer.
"Nova Scotians can look forward to lower auto insurance rates and
more protection because of the changes we're making to the
insurance system," said Ron Russell, Minister responsible for the
Insurance Act. "This is strong, effective legislation that
addresses the heart of the problem and affects substantial reform
to the automobile insurance system."
The proposed legislation will amend five different acts and
introduces three new regulations. 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 subject to board approval;
-- the option to purchase enhanced accident benefits (Section B
coverage).
The 20 per cent reduction will be applied to the last rate filed
by insurance companies before May 1, 2003. After that time rate
increases were prohibited.
The lower rate is achieved by changing the insurance package for
all Nova Scotia drivers. The change limits excessive compensation
for pain and suffering awards for minor injuries by implementing
a cap of $2,500. All other benefits remain the same as they are
now, with the exception of minimum liability protection which
will rise to $500,000 from $200,000. Limiting claims in the case
of minor injuries is an important factor in containing costs in
the long term.
"This legislation means more affordability, more accessibility,
and more protection for all Nova Scotia drivers," said Mr.
Russell. "After listening carefully to Nova Scotians we've
developed this comprehensive approach. This is the right
approach. We've given Nova Scotians exactly what they asked for -
- a reformed system which provides them with rate relief and
protection they need immediately."
The minister said that, with such a personalized product as
insurance, there will be different degrees of impact felt by
consumers. In particular, consumers who have changed their
driving situation in the last year by buying a new vehicle,
introducing a new driver, or being involved in an at fault
accident, may see changes in their rate. But, he said, the 20 per
cent decrease must still be applied on the new rate.
The government's new legislation will be complemented by the work
being done by the Atlantic Insurance Harmonization Task Force
that was formed by Atlantic Premiers at their meeting on June 18.
The harmonization of insurance regulations will reduce
duplication, resulting in lower costs for consumers. The Task
Force Report is expected Sept. 30.
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 laws 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.
For more information on the new legislation and regulations see
the Web site at, www.gov.ns.ca and click on the link for auto
insurance, or call 424-5851 in Halifax and toll free 1-800-898-
7668 in Nova Scotia.
FOR BROADCAST USE:
Nova Scotians will receive the relief and protection they've
been looking for with new legislation introduced today (September
26th) by the provincial government.
The legislation reduces auto insurance premiums by 20 per
cent. The lower rate is achieved by changing the insurance
package for all Nova Scotia drivers.
Ron Russell, minister responsible for automobile insurance,
says this is strong, effective legislation that addresses the
heart of the problem and affects real reform to the automobile
system.
The new rates become effective on November 1st of this year,
and other changes will take effect throughout the following 12
months.
-30-
Contact: Valerie Bellefontaine
Environment and Labour
902-424-2575
E-mail: bellefva@gov.ns.ca
Penny McCormick
Environment and Labour
902-424-7420
E-mail: mccormpl@gov.ns.ca
NOTE: Following is the list acts that will be amended by the auto
insurance reform package:
Insurance Act
Judicature Act
Summary Proceedings Act
Limitation of Actions Act
Motor Vehicle Act
The package also introduces three new regulations:
Tort Recovery Limitation Regulations
Prohibited Risk Factors Regulations
Mandatory Conditions Regulations
tdt September 26, 2003 10:20 A.M.
Drivers in Nova Scotia will receive the auto insurance rate
relief and increased protection they've been looking for with new
legislation introduced today, Sept. 26, by the provincial
government.
The legislation reduces auto insurance premiums by 20 per cent
effective Nov. 1. The legislative reform also provides better
protection, fairness and options for the consumer.
"Nova Scotians can look forward to lower auto insurance rates and
more protection because of the changes we're making to the
insurance system," said Ron Russell, Minister responsible for the
Insurance Act. "This is strong, effective legislation that
addresses the heart of the problem and affects substantial reform
to the automobile insurance system."
The proposed legislation will amend five different acts and
introduces three new regulations. 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 subject to board approval;
-- the option to purchase enhanced accident benefits (Section B
coverage).
The 20 per cent reduction will be applied to the last rate filed
by insurance companies before May 1, 2003. After that time rate
increases were prohibited.
The lower rate is achieved by changing the insurance package for
all Nova Scotia drivers. The change limits excessive compensation
for pain and suffering awards for minor injuries by implementing
a cap of $2,500. All other benefits remain the same as they are
now, with the exception of minimum liability protection which
will rise to $500,000 from $200,000. Limiting claims in the case
of minor injuries is an important factor in containing costs in
the long term.
"This legislation means more affordability, more accessibility,
and more protection for all Nova Scotia drivers," said Mr.
Russell. "After listening carefully to Nova Scotians we've
developed this comprehensive approach. This is the right
approach. We've given Nova Scotians exactly what they asked for -
- a reformed system which provides them with rate relief and
protection they need immediately."
The minister said that, with such a personalized product as
insurance, there will be different degrees of impact felt by
consumers. In particular, consumers who have changed their
driving situation in the last year by buying a new vehicle,
introducing a new driver, or being involved in an at fault
accident, may see changes in their rate. But, he said, the 20 per
cent decrease must still be applied on the new rate.
The government's new legislation will be complemented by the work
being done by the Atlantic Insurance Harmonization Task Force
that was formed by Atlantic Premiers at their meeting on June 18.
The harmonization of insurance regulations will reduce
duplication, resulting in lower costs for consumers. The Task
Force Report is expected Sept. 30.
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 laws 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.
For more information on the new legislation and regulations see
the Web site at, www.gov.ns.ca and click on the link for auto
insurance, or call 424-5851 in Halifax and toll free 1-800-898-
7668 in Nova Scotia.
FOR BROADCAST USE:
Nova Scotians will receive the relief and protection they've
been looking for with new legislation introduced today (September
26th) by the provincial government.
The legislation reduces auto insurance premiums by 20 per
cent. The lower rate is achieved by changing the insurance
package for all Nova Scotia drivers.
Ron Russell, minister responsible for automobile insurance,
says this is strong, effective legislation that addresses the
heart of the problem and affects real reform to the automobile
system.
The new rates become effective on November 1st of this year,
and other changes will take effect throughout the following 12
months.
-30-
Contact: Valerie Bellefontaine
Environment and Labour
902-424-2575
E-mail: bellefva@gov.ns.ca
Penny McCormick
Environment and Labour
902-424-7420
E-mail: mccormpl@gov.ns.ca
NOTE: Following is the list acts that will be amended by the auto
insurance reform package:
Insurance Act
Judicature Act
Summary Proceedings Act
Limitation of Actions Act
Motor Vehicle Act
The package also introduces three new regulations:
Tort Recovery Limitation Regulations
Prohibited Risk Factors Regulations
Mandatory Conditions Regulations
tdt September 26, 2003 10:20 A.M.