April 24, 2006
Consumers Association of Canada calls on New Brunswick government over insurance
Ottawa, Ontario – The Consumers’ Association of Canada (CAC) has called on the provincial government to “stand up for New Brunswickers” on auto insurance, stating that New Brunswick drivers currently pay some of the country’s highest premiums for the lowest benefit scale. The statement came following news that insurance companies made record profits in 2005.
Recently, the New Brunswick Insurance Board informed the public that the installation of a $25,000 cap on auto injuries has reduced claims by 40 per cent. “This profit is coming off the backs of consumers,” says CAC president Bruce Cran. “Unfortunately, it is the Ontario insurance companies that benefit from such a restriction, not the people of New Brunswick, and certainly not the victims of car crashes.”
Currently, New Brunswickers are offered two auto insurance products: a no-frills, no-fault plan with a maximum medical/rehabilitation of $25,000, and a standard no-fault with a maximum medical/rehabilitation of $50,000. “The problem is consumers here don’t get the same benefits as consumers in other Canadian provinces,” Cran says. “For example, neither option compares with the B.C. basic auto insurance policy that includes no-fault with a basic medical/rehabilitation of $150,000.”