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How You Can Help
If you have been a victim of the Injury Regulation, you realize how easily you could become one, you are bothered by the fact the insurance industry is being allowed to profit unreasonably at the expense of victims and the New Brunswick economy, or you simply have a problem with the basic unfairness of the cap, you can do your part to help us persuade the government to remove it from the books.
The introduction provides a good overview of the facts, but to summarize, there are two distinct problems with the Injury Regulation.
Ever since the $2500 cap was brought in 2003, the insurance industry has been enjoying unprecedented profits of anywhere from double to four times what is considered fair and reasonable. As a result, this has created a significant financial drain on the New Brunswick's economy of more than a quarter of a billion dollars since 2003 in addition to putting a direct strain on the province's social and medical programs.
The insurance industry will argue that removing the cap will trigger increased premiums. That will be a scare tactic and here is why. Among the changes brought in by the former government was the creation the New Brunswick Insurance Board. As a result, auto insurers cannot increase premiums by more than 3% unless prior approval from the Insurance Board has been obtained (section 267.51 of the Insurance Act). In light of the industry’s unprecedented profits since 2003, there is no chance any such application would be successful.
Furthermore, the Insurance Industry's economic data shows that even with the complete removal of the Injury Regulation, the Industry would still enjoy profits of approximately 13.3% return on equity, after tax, which is comfortably above the 10% mark recognized as reasonable by the experts and the New Brunswick Insurance Board.
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