Protecting the interests of Island auto insurance consumers was the central theme as Premier Pat Binns today announced a new automobile insurance strategy for the province.
The strategy is designed as a comprehensive measure to reduce automobile insurance rates for consumers on Prince Edward Island.
"Many consumers have told us that they have experienced unacceptable automobile insurance rate increases. This has caused hardships for some individuals, families and small businesses," said Premier Binns. "We are taking these concerns seriously. As a result, we have developed a strategy to achieve the lowest possible rates while providing appropriate coverage for consumers."
The objectives of the reforms announced today are to ensure that Island drivers have access to affordable automobile insurance and that victims are provided with adequate compensation based on the extent of injuries sustained. This strategy will also ensure that a more competitive environment exists for the automobile insurance industry.
The five-point strategy announced this afternoon by the Premier will:
- introduce a maximum limit of $2,500 on bnefits for minor personal injury and damages for non-economic loss;
- enact legislation granting the Island Regulatory and Appeals Commission full regulatory authority over automobile insurance rates;
- reduce the limitation period for making a claim, bringing it into line with other Atlantic Provinces;
- promote and enhance driver safety measures; and
- develop common regulatory and harmonized rules for Atlantic Canada, taking into consideration the recommendations of the Atlantic Insurance Task Force which will be reporting on September 30th.
In addition to this plan, insurance companies will be asked to submit a new rate schedule to the Island Regulatory and Appeals Commission by October 15. Premier Binns had indicated that he expects that the industry will respond by lowering rates to, on average, levels prior to 2002 adjustments.
"We have consulted widely, we have listened to the concerns of Islanders, and we are responding to those concerns. In doing so, we are taking the necessary steps to ensure Islanders will have the lowest possible rates for automobile insurance," said the Premier.