NB strikes committee to look at public auto

Hot on the heels of a throne speech demanding insurers reduce auto insurance rates in New Brunswick, the provincial Conservative government is striking a committee to review the potential for a public auto insurance system.MLA Elizabeth Weir has been asked by Premier Bernard Lord to head up the “Select Committee on Public Auto Insurance”, which will be an extension of a joint effort by Atlantic premiers to address the issue of rising auto insurance rates.”Public automobile insurance is a difficult and complex issue,” Lord says. “It requires detailed analysis and thoughtful consideration. There are many difficult questions that need answering.”Among the committee’s mandates will be to review the public auto insurance systems in place in other provinces and “identify the most suitable model of public automobile insurance to ensure fair, accessible, and affordable auto insurance for all New Brunswickers”, states a government press release.Attributes of the system include the level of tort access (i.e. full tort, full no-fault or some combination), coverages, risk rating, distribution (whether through brokers or the government) and the level of private insurer involvement.The committee will also address costs to implement and manage the system, and the impact of those employed directly or indirectly by the current system, including brokers, adjusters, insurer staff, lawyers, health care providers.A discussion paper is set to be released by the end of August.