Consumer group wants public auto insurance in New Brunswick

The Consumers’ Association of Canada (CAC) has asked all three political parties in New Brunswick to implement public auto insurance in New Brunswick.The plan calls for a system based on that of the Insurance Corporation of B.C. (ICBC) as a response to rising premiums in the province. The issue became a political hot potato in the recent provincial election, where many blamed it for the sharp decline in the Conservative majority.”Consumers in New Brunswick spoke loudly during the recent provincial election. They want changes in their auto insurance system”, says CAC national president Mel Fruitman.He says that government proposals for a “no-frills” insurance policy “may have merit”, but that this may result in less protection for auto accident victims.He points to Manitoba and Saskatchewan’s public systems as reducing premiums but also limiting consumer rights through no-fault insurance.He thinks B.C.’s system is the best model, and sites premium figures of 50%-75% less for B.C. drivers compared to New Brunswick drivers.”B.C.’s system may not be perfect but it’s the best in Canada”, says Bruce Cran, head of the Consumers Association in BC. While he cites six years of no rate increases leading up to a 6% increase last year, ICBC figures indicate a 7.4% average rate increase at the end of 2001, followed by an increase of 1.4% on private passenger basic (liability) and a further 7.6% on private passenger collision rates at the end of 2002. He also cites a $100 dividend cheque received by every driver, although ICBC data indicates only about half of drivers received the full $100, being those with four years of clean driving record.