New Brunswick Consumer Advocate says “alternative” to injury caps should be sought

New Brunswick’s Consumer Advocate believes an “alternative” to minor auto injury caps should be explored.
“One of the hottest issues in 2008 has certainly been the debate and the ongoing court litigation surrounding the minor injury cap legislation in this province as well as in other provinces in this country,” the Consumer Advocate 2008 Annual Report reads.
“Consumers do not want to see drastic increases in their insurance premiums as a consequence of the removal of the cap, but on the other hand they also don’t agree in general with the fact that serious injuries are deemed to be ‘minor’ according to the legislation as it now stands.
“There should be an alternative solution whereby premiums can still be protected while at the same time allowing for adequate compensation for what would otherwise not be considered as ‘minor injuries’ without threatening the insurance industry’s financial health.”
The report notes a second emerging issue in 2009 will be the government’s proposed resolution to the practice of charging higher premiums for drivers that experience a lapse in coverage.
The New Brunswick government has stated it will introduce “new regulations to prohibit unacceptable underwriting practices.” Specifically, insurers will be prohibited from refusing to insure a person, and from cancelling or refusing to renew a person’s existing automobile insurance policy, on the basis of eight specific grounds in any combination, including “a lapse in coverage.”
The Advocate also noted the province’s move in 2008 to switch from four to 11 territorial rating categories in the auto insurance line “is a much more accurate method of assessing risk and setting premiums across the various areas of this province.”