New Brunswick-
Consumer Advocate
for Insurance -
Annual Report for
2008 Released
The consumer
advocate handled
1,309
files (includes both
enquiries and
complaints), down
from 1,848 in 2006.
Auto
and Home
insurance files
accounted for
84% of
that total while
Life and Health
files accounted for
about
15%.
Enquiries/complaints
regarding insurance
premiums have
decreased by 25%
over the past two
years. Most
comments in the
report related to
auto insurance. Key
facts reported are
as follows:
-
A new
territorial
rating system
came into effect
on January 1,
2008. The new 11
territory
statistical
rating system
replaced the
previous system
of 4 regions.
-
As of December
2008 New
Brunswick
drivers in the
Facility
Association
represented 1.6%
of all drivers,
the lowest for
the Atlantic
Provinces
-
There was an
overall premium
rate reduction
of 2.04% in 2008
for all
companies
writing private
passenger
automobile
insurance. This
is the fourth
consecutive year
that rates have
gone down. The
average rate was
reduced to $765.
Key issues going
forward into 2009
were identified as:
Lapse in coverage
Legislation will be
amended to change
the rules for
insurers charging
higher premiums for
drivers that
experience a lapse
in coverage. [A
lapse in insurance
coverage for less
than 24 months
cannot be used to
deny automobile
coverage or used as
an element in a risk
classification
system. The
amendments increase
the lapse period
from 12 months.
Lapses resulting
from failure to pay
premiums, for
suspension of a
license for an
offense or failing
to disclose a
conviction will be
permitted to be
used. Amendments are
effective April 1,
2009.]
Minor injury cap
The advocate
recognized the
debate and ongoing
litigation
surrounding the
minor injury cap
legislation in New
Brunswick and other
Provinces. The
advocate wants to
ensure that there is
adequate
compensation for
claimants whose
injuries may be
defined as “minor”
by the legislation.
This must be
balanced with
consumers not
wanting premiums to
rise and not
threatening the
insurance industry’s
financial health.
The report can be
found at
www.insurance-assurance.ca
