IBC Voices Insurer Concerns Over Bill-30

The Insurance Bureau of Canada (IBC) says Newfoundland’s Bill-30 is a “short-term fix” that does little to relieve costs on auto insurers and their customers in the province. Bill-30 was recently signed into law, despite opposition from insurers.

“The fact of the matter is that the legislation is merely short-term relief,” says IBC CEO Stan Griffin. “It just won’t produce the long-term savings for consumers that the government has promised.” The government has mandated an average 15% premium rate cut. Griffin also takes issue with the fact that the government has called for public hearings on insurance after the legislation has already been passed.

The IBC points to other Atlantic provinces, which also mandated rate decreases, but capped “pain and suffering” awards for accident victims. Newfoundland has put a deductible on non-economic awards, a move the IBC says will not prevent “costly lawyer-driven settlements for these minor injuries”.