Automobile Insurance Review

Overview of the Legislation Governing Automobile Insurance

The Insurance Companies Act and the Automobile Insurance Act and their accompanying regulations govern the automobile insurance industry in this province.  The last time major changes were made to the legislation was in 2004 and 2005.  There has not been a major update since that time.

A copy of the current Insurance Companies Act can be found here, and Regulations can be found here.

A copy of the current Automobile Insurance Act can be found here, and Regulations can be found here.

Why Review Automobile Insurance?

Acting on the commitment in The Way Forward and the Minister’s mandate letter, Service NL announced a comprehensive review of the automobile insurance system in July 2017. The goal of the review is to “modernize the system to provide greater benefits and better value to residents of the province."

The Terms of Reference announced by Service NL on August 15, 2017 instructed the Board of Commissioners of Public Utilities (PUB) to conduct the majority of the auto insurance review. Items, such as highway safety, other policy considerations and drafting any of the proposed changes to legislation are the responsibility of Service NL and are not covered as part of the PUB review. Participation in both the PUB review and this process is encouraged.  Details on how to participate in the PUB review can be found at the bottom of this page.

Service NL is tasked with the completion of its own review and is seeking input on six key areas: automobile insurance rate setting process (PUB); encouraging increased competition in the marketplace; emerging issues; vicarious liability with respect to rental vehicles; improving highway safety; and other issues.

The Terms of Reference for Service NL's Review

  • To review ways to encourage new entrants to the auto insurance market or to encourage increased competition amongst auto insurance companies in the province.
  • Assess what new regulatory tools or legislative changes would be required to address emerging changes in auto insurance including usage based insurance, telematics or ride sharing type product offerings.
  • To review the issue of vicarious liability and priority of insurance payment with respect to rental vehicles and long term lessors.
  • To gather opinions and evidence on measures to improve highway safety and automotive accident prevention in Newfoundland and Labrador.
  • To review and provide any other recommendations on any other aspect of automobile insurance to improve the auto insurance product offered in this province such as the creation of a risk sharing pool.

A copy of the Terms of References can be found here.

Have Your Say

The Government of Newfoundland and Labrador is requesting input from groups and individuals regarding any of the items identified in the Terms of Reference or any other areas of concern regarding the automobile insurance industry. You may provide your input online by completing the following questionnaire or by submitting a written submission by email to [email protected] or through regular mail to:

Financial Services Regulation Division, Service NL
2nd Floor
Confederation Building, West Block
Prince Philip Drive
P.O. Box 8700
St. John's, NL  A1B 4J6
We thank you in advance for your participation.  Online and written submissions will be accepted until 5:00 p.m. on May 31, 2018.

If you have any questions related to this questionnaire, require an alternate format or would like to meet with a Service NL official, please email [email protected].

Please do not include your name or information that could identify you. This information is being collected for the purpose of obtaining your views on automobile insurance. The authority for this collection comes from section 61(c) of the Access to Information and Protection of Privacy Act, 2015. For questions or enquiries in relation to privacy legislation, please contact Ellen Haskell at [email protected].

PUB Review

As mentioned, the PUB will conduct an independent closed claims study to better understand factors contributing to the rising automobile insurance claim costs in Newfoundland and Labrador. The PUB will also conduct public consultations to seek input on each aspect of its Terms of Reference. This review will explore options and opportunities to improve the insurance product overall. At the end of this process, the PUB will submit a report and recommendations to the Provincial Government.

Residents are encouraged to provide feedback to the PUB during their review process.  Feedback to the PUB can be provided through their website feedback form, by email, telephone, fax, mail, scheduling a meeting or attending a public session.  For full details click here for a link to the PUB 2017 Automobile Insurance Review website.

Click here to fill out the questionnaire