News Release - May 28, 2002
CHOICE IN AUTO INSURANCE
Saskatchewan people will soon have a choice of what type of auto injury
insurance they want. In an effort to better meet the needs of all
residents, a choice of tort or no-fault insurance will be offered.
Details of the two options were outlined today with the introduction of
amendments to The Automobile Accident Insurance Act.
"The new tort coverage will be available January 1st, 2003 to meet the
needs of those people in the province who want an alternative to no-fault
insurance," Crown Investments Corporation Minister Maynard Sonntag
said. "No-fault insurance is also being improved as recommended by the
independent committee that reviewed the coverage.
"These changes mean Saskatchewan people can choose between two quality auto
injury insurance products and, with information and assistance from their
independent insurance broker, can decide which product best meets their
needs and the needs of their family members."
The new tort coverage provides some benefits regardless of accident
circumstances and allows the right to sue for pain and suffering, subject
to a $5,000 deductible. Like the benefits under no-fault insurance, they
will be indexed annually to the rate of inflation. This tort product
compares very favourably to other tort options available in North America.
The choice of auto injury insurance is not limited to vehicle owners. All
Saskatchewan residents 18 and over can choose their coverage. Parents can
pick the coverage for their children.
To ensure no Saskatchewan person is without injury insurance coverage, all
people will be covered by no-fault insurance unless they choose to opt out
and pick tort coverage. This process will be simple. A one-page notice
can be filed at any of the 435 SGI motor licence issuers in Saskatchewan.
On introduction, both tort and no-fault will cost the same and there will
be no fees for changing your auto injury insurance.
"SGI is working with the Insurance Brokers' Association of Saskatchewan to
co-ordinate a broker-issuer training program and education materials for
consumers," Sonntag said. "SGI understands the important role of brokers
and issuers in assisting Saskatchewan residents in making insurance
decisions. Choosing your auto injury insurance coverage is no different.
Saskatchewan's independent insurance professionals will provide individual
and timely support to Saskatchewan residents as they make their auto injury
insurance purchasing decisions."
For more information, contact:
Phone: (306) 775-6907