The wheels are in motion on Newfoundland and Labrador's long-awaited auto insurance review. The Maritime province is still very much on track to meet the ambitious Fall 2018 target it set out to have changes implemented by, reaching a major milestone in the process this week when it finalized and released the terms of reference for its review—a release that was lauded by the country's preeminent insurance association, Isurance Bureau of Canada (IBC).
"The Government of Newfoundland and Labrador has announced terms of reference which will provide for a sweeping and comprehensive review of the auto system in this province," said Amanda Dean, Vice-President, Atlantic, IBC. "This is exactly what is needed to make sure auto insurance is sustainable, available, and beneficial when drivers need to make a claim."
The review, which will be conducted jointly by Service NL and the provincial Board of Commissioners of Public Utilities (PUB), has been designed to feature two broad phases. The first will be a separate combination of closed claims studies covering private passenger automobile insurance and causes of high taxi claims costs. Phase two will focus specifically on reviewing the existing private passenger auto insurance products that are offered in Newfoundland, analyzing them from a cost-saving perspective.
"Consumers in Newfoundland and Labrador ought to have an auto insurance system that provides effective rehabilitative care while keeping costs down," said Dean. "The terms of reference announced today lay the groundwork to achieve that."
Almost all aspects of claims and products will be on the table for review during this undertaking. This includes costs associated with third party liability, bodily injury claims, deductible amounts, benefits, and much more. Reviewers will also use the opportunity to investigate measures that can be taken to improve highway safety and automotive accident prevention in the province.