A Step in the Right Direction for Newfoundland and Labrador Drivers
ST. JOHN'S, March 27, 2018 /CNW/ - Insurance Bureau of Canada (IBC) welcomes the news today that the Government of Newfoundland and Labrador will remove 5% of the retail sales tax paid on auto insurance premiums over the next four years.
Tom O'Handley, Manager of Government Relations in the Atlantic region for IBC, believes that this is a significant step in the right direction to return stability to the auto insurance market in the province. "Auto premiums in Newfoundland and Labrador are already the highest in the Atlantic region. This change will make auto insurance more affordable for consumers and that is a very positive move," he stated. IBC strongly supports o the government's upcoming auto insurance review – which will hopefully result in more substantial, fair and sustaining reforms to bring even more relief to Newfoundland and Labrador drivers.
O'Handley added, "We need to fix the current system. It now costs this province's drivers more in premiums than their counterparts pay elsewhere in Atlantic Canada. In fact, on average, premiums are 40% higher here. Drivers in this province are unhappy with their high premiums, their limited choice and the increasing presence of uninsured drivers on the road."
IBC is hopeful that in the upcoming provincial review, the government will consider how to encourage more insurers to compete in the marketplace and offer more choice and lower prices to Newfoundlanders and Labradorians.
About Insurance Bureau of Canada
Insurance Bureau of Canada (IBC) is the national industry association representing Canada's private home, auto and business insurers. Its member companies make up 90% of the property and casualty (P&C) insurance market in Canada. For more than 50 years, IBC has worked with governments across the country to help make affordable home, auto and business insurance available for all Canadians. IBC supports the vision of consumers and governments trusting, valuing and supporting the private P&C insurance industry. It champions key issues and helps educate consumers on how best to protect their homes, cars, businesses and properties.
P&C insurance touches the lives of nearly every Canadian and plays a critical role in keeping businesses safe and the Canadian economy strong. It employs more than 120,000 Canadians, pays $9 billion in taxes and has a total premium base of $49 billion.
For media releases and more information, visit IBC's Media Centre at www.ibc.ca. Follow IBC on Twitter @InsuranceBureau and @IBC_Atlantic or like us on Facebook. If you have a question about home, auto or business insurance, contact IBC's Consumer Information Centre at 1‑844‑2ask-IBC.
If you require more information, IBC spokespeople are available to discuss the details in this media release.
SOURCE Insurance Bureau of Canada
To schedule an interview, please contact: Steve Kee, Director, Media & Digital Communications, 416-362-2031 ext. 4387, 416-841-5669, [email protected]
Share this article