Aug. 3, 2006
FREDERICTON (CNB) - A substantial rate reduction for recreational vehicles for Facility Association (FA) clients has been ordered by the New Brunswick Insurance Board (NBIB). The reduction, retroactive to July 1, 2006, was announced today by NBIB chairman Paul D'Astous.
Vehicles in the affected class include motorcycles, snowmobiles, ATVs and mopeds.
"The system works," D'Astous said. "During our open-house tours earlier this year we had heard concerns regarding recreational vehicles from individuals. As well, the Consumer Advocate for Insurance brought the situation to our attention. We then followed up to determine whether it required further action."
It was brought to the attention of the NBIB that some samples of rate increases in FA were significantly in excess of what had been approved by the board in February 2006. Upon further investigation and discussions with FA, a rate adjustment was made that now reflects the expected increase.
"We want to make it clear that, as a board, we review the rates and justification for the rates for each class of vehicle separately and independently," D'Astous said. "Motorcycle rates are based on motorcycle statistics."
The NBIB was established in 2004 as the regulatory agency that approves rates for automobile insurance products. Its mission is to ensure that New Brunswick rates are 1.) just and reasonable; 2.) based on New Brunswick driver experience; 3.) based on New Brunswick company experience; and 4.) comparable to other provinces in Atlantic Canada. It also fulfils a stewardship role by educating New Brunswick ratepayers of their roles and responsibilities with regard to auto insurance.
MEDIA CONTACT: Lisa Ferguson, New Brunswick Insurance Board, 506-643-7710.