In light of the heated review of Newfoundland and Labrador’s troubled auto insurance system, Minister of Service Sherry Gambin-Walsh has outlined that the provincial government’s decision will be an “informed” one.
Although the Public Utilities Board (PUB) is in charge of reviewing any possible solutions to NL’s floundering auto insurance system, the board will not make any specific recommendations regarding the implementation of a minor injury cap.
“We will not be making recommendations on a cap,” said PUB chair Darlene Whalen two weeks ago, when the public hearings on NL’s auto insurance began. “Where we are asked to make recommendations, we will. We are guided by the terms of reference.”
Gambin-Walsh’s office issued a statement earlier in the review proceedings which outlined the functions of the PUB: “The Public Utilities Board is tasked with a review and report on the items outlined in the Terms of Reference for the auto insurance review for Newfoundland and Labrador. The Terms of Reference also directed the PUB ‘To review the impact on rates of a monetary cap on claims for non-economic loss for minor/mild injuries and the implications of such a cap for claimants’.”
While the PUB’s role in the auto insurance review will be purely objective, the Minister of Service remarked that the board’s findings will nevertheless serve as a major source of information from which the provincial government will base its final decision on the matter.
“As announced in August 2017, Phase 2 of the process includes a review of the existing private passenger automobile insurance products offered in Newfoundland and Labrador, as well as recommendations for possible options to contain costs,” read a statement from the office of Gambin-Walsh. “The PUB, along with the people of the province, will offer recommendations throughout the process on a number of options to help government make an informed decision on how to lower rates that benefit consumers and help bring stability to the automobile insurance industry.”
Despite the seeming objectivity of the PUB, The Telegram reported that the Terms of Reference on the board’s website made several references to cases wherein it had to make its own recommendations.
One of the references reportedly asks that the PUB provide any recommendations to reduce claims costs and reduce rates after reviewing an audit of taxi closed-claims files. Another reference asks the PUB to review the impact of a monetary cap on rates and on accident victims.
