Netherlands Working Together Tender

Several changes to the Automobile Insurance Act and the Insurance Companies Act will come into effect. Under the Automobile Insurance Act uninsured motorists involved in an accident prior to August 1 2019 are eligible for compensation from the Uninsured Automobile Fund. Where an accident occurs on or after August 1 2019 uninsured motorists will be prohibited from accessing the uninsured fund for payment of damages for injuries arising from the accident.The Insurance Companies Act will now include a reduction of commission rates for taxis and limousines. Previously Facility Association paid brokers a six per cent commission rate for taxis and limousines. The commission rate for taxis and limousines is cut in half from six per cent to three per cent which must be reflected in the next rate filing from Facility Association.Facility Association have also been directed to include in its Plan of Operation the establishment and operation of an all-comers risk sharing pool for members in the province. A risk sharing pool would allow drivers who are currently insured through Facility Association but are not considered to be the highest risk to be insured through the regular market while allowing insurance companies to share that risk with all insurers.The Provincial Government is also committed to providing better value for consumers by recognizing new technology in the insurance industry. In certain cases this does not require changes to insurance legislation such as allowing insurance companies to offer Electronic Proof of Auto Insurance EPAI. Effective July 29 2019 documents may be delivered electronically through smart phones apps email or tablets should a person consent to EPAI if offered by an insurance company.These changes are part of the broader amendments intended to help stabilize insurance rates while enhancing consumer protection to benefit the people of the province. Amendments to the Automobile Insurance Act and the Insurance Companies Act were made as a result of public consultations on automobile insurance in 2018 consultations with stakeholders and the review received from the Board of Commissioners of Public Utilities PUB.