Phase One of Fair Auto Insurance Implemented
The province's consumer-friendly auto insurance reforms, effective April 1, ensure all drivers in Nova Scotia enjoy greater benefits and will not face premium increases if they cover damage costs themselves.
These reforms are part of the first phase of the fair auto insurance package announced last fall.
"We are following through with our commitment to implement reforms that balance fairness, stability and affordability to provide Nova Scotia drivers with the best possible coverage," said Graham Steele, Minister responsible for the Insurance Act.
The province's phase one reforms will:
- enhance mandatory benefits for all drivers under section B including medical, rehabilitation, funeral, death and loss-of-income benefits
- ensure automobile insurers cannot increase premiums for collisions when no claim is made and the driver covers the cost of damages themselves
- provide assistance to volunteer fire departments for the costs incurred when responding to collisions through a levy paid by the insurance industry
- establish periodic reviews to ensure automobile law in Nova Scotia is always up-to-date
These reforms are based on the recommendations of the independent auto insurance review and cost analysis from the Utility and Review Board.
The fair auto insurance reforms are a major change in the auto insurance program in Nova Scotia. To allow the insurance industry enough time to prepare new products and processes and train staff, the reforms are being implemented in two phases.
Work is already underway to implement reforms planned for phase two, which go into effect April 1, 2013. The phase two reforms will help people injured in automobile collisions access treatment quickly for minor injuries, allow drivers involved in a collision to deal with their own insurer for property damages, and give Nova Scotians a choice to buy an optional full-tort product for minor injuries.
For more information on the fair automobile insurance reform package, visit www.gov.ns.ca/finance .