Responding to the news that insurance companies made record profits in 2005 The Consumers’ Association of Canada has called on the Provincial government to “Stand Up” for New Brunswickers.

“This profit is coming off the backs of consumers,” says Bruce Cran, President of the Consumers’ Association of Canada. Recently, the New Brunswick Insurance Board informed the public that the installation of the $2,500 cap on auto injuries has reduced claims by 40%. Says Cran, “Unfortunately, it is the Ontario Insurance Companies that benefit from such a restriction, not the people of New Brunswick, and certainly not the victims of car crashes.”

Currently, New Brunswickers are offered the choice of two Auto Insurance Products. The first is a no-frills no-fault with a maximum medical/rehabilitation of $25,000 and the second is a standard no-fault with a maximum medical/rehabilitation of $50,000. Concerned with value proposition that is offered Cran explains, “The problem is consumers here don’t get the same benefits as consumers in other Canadian provinces. For example, neither option compares with the B.C. basic auto insurance policy that includes no-fault with a basic medical/rehabilitation of $150,000.”

The governments latest comments appear to support the insurance policy reforms reducing benefits without corresponding reductions in premiums. Confused by the governments response to the enormous profits of the insurance companies Cran asked the question, “ Why aren’t the New Brunswick Insurance Board and the Lord Government advocating a better deal for New Brunswickers?”

Contact:

Bruce Cran
President, Consumers’ Association of Canada
Ph: 613 291 7999