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Newfoundland and Labrador’s government has unveiled a plan to fix the province’s increasingly pricey auto insurance - but not everyone is happy about some of the measures proposed.
On Monday, the government put forward several measures to bring auto insurance premiums to reasonable levels.
Some of the ideas were widely welcomed - including a proposal to change legislation requiring all auto insurers to give discounts to drivers using winter tires; allowing insurers to offer telematics technologies to track customer driving behaviour; and amending the Highway Traffic Act to install highway traffic cameras.
According to Premier Dwight Ball, the remaining tax on auto insurance will also be eliminated as part of the plan. The tax contributed to a revenue stream of $60 million for the government. CBC News reported that more details regarding the tax cancellation will be revealed as the government announces its budget for the year.
The government also put forward the idea of preventing uninsured drivers from filing claims through the provincial uninsured automobile fund – an idea that opposition parties panned during a meeting earlier this week. This has, according to the PUB report, resulted in $26 million in payouts to uninsured drivers in the past – but with these new proposals they will instead be on their own to pay for expenses from accidents.
Uninsured drivers will also take a hit from a new check that requires every insurance company to inform the Department of Motor Vehicles when a policy is cancelled or expires. Currently that requirement only applies to the likes of school buses, ambulances and taxis.
Officials were also pushing to introduce a cap on bodily claims, but were met with criticism from personal injury lawyers and the province’s consumer advocate. Instead, the deductibles on these claims will increase from $2,500 to $5,000.
“We could not find a common ground. There was no consensus among the public or the stakeholders on this matter,” said Service NL Minister Sherry Gambin-Walsh.
