1. The premium savings proposed by the Weir Report hinge on changing the auto product to "no fault." Moving to "no fault" will lead to reduced or stable premiums as a result of more predictable claims costs. It is clear, however, that you don't need the Government to offer "no fault"; it can be offered equally well by the private sector. If "no fault" is what New Brunswick consumers want, they should consider letting the private sector run it. This way, they would save the $82 million start-up costs for Government Auto as well as hundreds of jobs.
2. In Nova Scotia, opinion polls say that Nova Scotians reject "no fault" because it removes the right to sue.
3. There are significant differences between Nova Scotia and New Brunswick apart from the "no fault" issue. There are regions of New Brunswick consumers, particularly in the northeast, which have been virtually without the ability to get insurance, especially at decent prices. By and large, this has not been the case in Nova Scotia.
4. The Weir report says that the average person in New Brunswick would pay $993 under Government "no fault" - which is about $200 less than what they pay now, or about $1200. But the figure of $993 is before :
- bad driver surcharges are added;
- a new driver surcharge of $200 for three years is added.
So some New Brunswick drivers would be left with premiums that are virtually unchanged; but all New Brunswickers would have lost the right to sue.
5. The $1200 average premium in New Brunswick includes people in Facility who pay much more. If you subtract the people in Facility; the average falls below $1200 and approaches $993. You have to wonder what kind of break on premiums a Government no fault system would give New Brunswick consumers.
6. The report admits it will cost $82 million to start up Government "no fault" program as well as 1,100 insurance jobs. These jobs would be replaced with 800 new jobs - a net loss of 300 full-time jobs in New Brunswick.
7. The Weir Report initially had a budget of $100,000 and was supposed to report by December 31. It ended up costing $485,000 and reported on April 2. It was late and over budget. [ top ]
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