Tories would turf minor-injury cap, Crosbie says
If Progressive Conservatives form next government, they would repeal any legislation bringing in a cap, eliminate insurance tax, PC leader says
Progressive Conservative Leader Ches Crosbie made some assurances on automobile insurance Wednesday.
The leader of the Opposition said that if Premier Dwight Ball’s government brings in a minor-injury compensation cap for automobile accident victims, it would be repealed if the Tories form the government after the provincial election in 2019.
“I am serving due notice that if I get the opportunity to form a government, a PC government … I’m going to repeal whatever interference with people’s rights the Ball Liberal government performs,” Crosbie said.
“There’s no reason to be interfering with the right to compensation as determined in hundreds of court decisions, maybe thousands of court decisions, over many decades across the country. Those rights have been established by the courts considering everybody’s individual circumstances and the needs of society. Leave it alone.”
The Public Utilities Board (PUB) is completing its review of automobile insurance in the province, including why there are increasing claims costs for private passenger vehicles and
taxi operators, and options to reduce those costs. The board has been specifically asked to examine the impact on rates and implications for claimants of introducing a monetary cap on claims for non-economic loss for minor/mild injuries or continuing with the current deductible of $2,500 or increasing the deductible.
The Insurance Bureau of Canada (IBC) has suggested, as part of a package of proposed reforms, that the province can help stabilize the auto insurance industry by replacing the existing $2,500 deductible with a $5,000 compensation cap on minor injuries. Compensation caps, the IBC says, have been proven in other jurisdictions to control bodily injury claim costs and keep premiums stable.
During public hearings before the PUB, numerous reports, presentations and witnesses addressed both sides of the issue.
The PUB, however, will not make a specific recommendation on whether a minor-injury cap should be implemented.
The PUB’S report to the government is expected this fall.
Crosbie spoke Wednesday during an event organized by Seniors Against Insurance Cap.
Robert Rogers, chair of the group, said 15 seniors’ organizations representing thousands of people in the province make up the umbrella group.
He said seniors worry about the cost of auto insurance and oppose a proposed minor-injury cap.
“Many seniors no longer drive, yet they could become the victim of a car accident, either as a pedestrian or passenger,” Rogers said. “A cap on insurance claims would have detrimental impacts on these innocent victims, leaving them vulnerable financially and with no ability to challenge the outcome of a settlement. As well, many seniors that still drive a car are not in favour of an imposed cap on accident claims that would limit the ability to receive fair compensation.”
Crosbie said there is no justification to interfere with people’s rights to compensation because of automobile accidents.
“We know the rate of accidents is going down and will continue to go down in the future,” he said. “It’s a solution in search of a problem. The industry is profitable. (People of the province) have not been promised by the insurance industry any lessening of their insurance premiums.
“If affordability is the issue, Mr. Ball knows what he can do. He can get rid of that 15 per cent insurance tax he put on all insurance products.”
A statement from the provincial government Wednesday afternoon noted Newfoundland and Labrador has the highest automobile insurance rates in Atlantic Canada, and the PUB review is focused on identifying ways to lower rates to benefit consumers and help bring stability to the automobile insurance industry.
The Liberals will reduce the HST on auto insurance by at least five per cent over the next four years, the statement read.