Enhancing automobile insurance system in N. S.

The duties of the Nova Scotia Insurance Review Board (IRB) will be reassigned to the Utility and Review Board (UARB) effective Oct. 1, 2008.

The Nova Scotia Department of Finance says it believes assigning IRB responsibilities to the UARB will result in the most effective means of delivering this important regulatory function to the benefit of consumers and industry.

“This change coincides with implementation of two new regulatory changes: mandatory filing and claims notification requirements,” according to a posting by the Finance Department. “The UARB is well-suited to absorb the responsibilities of the IRB and will be able to effectively administer the new mandatory filing regulations, which will increase the number and frequency of automobile insurance rate applications.”

In addition, the government is adding new claims notification requirements as another means to enhance the automobile insurance system.

Previously, insurance companies were not required to notify policyholders of claims received or amounts paid on claims from third parties.

The Automobile Insurance Prohibited Risk-Classification Factors Regulations are being amended effective Nov. 1, 2008 to add provisions requiring that:

• an insurer receiving a claim to inform the claimant in writing of receipt of the claim; and

• an insurer making a payment on behalf of an insured to inform the claimant in writing of the total amount paid with respect to the claim.