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News
Release |
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Sweeney says recent report on automobile insurance rates
should be a wake up call for government October 25, 2005
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George Sweeney, Opposition Critic for Government Services and MHA for the
District of Carbonear-Harbour Grace, says a report released last week by the
Consumers Association of Canada should cause concern for Minister Dianne
Whalen who has not delivered insurance savings to consumers as promised
earlier this year. "The release of this report by the Consumers Association and a news release from the Insurance Bureau of Canada indicate that government has not done all it can to reduce insurance rates for consumers in the province," said Sweeney. "Rather than denying that there are problems with the package put forth by government earlier this year, the Minister should be taking an active role in determining what further changes could be made to better deliver lower rates. "A first step for the Minister should be to deliver the savings that she promised when new legislation was passed in the spring. Many people have contacted me in disbelief with the fact that despite new regulations, insurance renewals are being sent out with increases rather than large cuts as promised by the Minister and her government. "It is evident that government’s $2500 deductible scheme has not provided the necessary limit on claims paid by insurers in the province. It is time for government to reevaluate it’s decision to reject the recommendation of the Public Utilities Board to up the deductible to $10,000 or implement a $2500 cap as used in other province. "The study also points to a complete failure by government to take insurance companies to task for reaping huge profits on the backs of Newfoundlanders and Labradorians. Nowhere in the government reform package did strengthened disclosure of profits and regulation become an issue for consumer protection. It is obvious by the rate discrepancies between British Columbia and this province that action is necessary. "Minister Whalen is developing a reputation for not dealing with important issues impacting consumers in this province. Rather than denying there is a problem, I ask that she immediately investigate the claims made by the Consumers Association and the Insurance Bureau of Canada so that consumers in this province can feel assured that they are being treated fairly." |
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