40 per cent boost in auto insurance sought

CALGARY — Albertans could be facing a serious spike in the cost of auto insurance.

CALGARY — Albertans could be facing a serious spike in the cost of auto insurance.

The province’s insurance industry is asking to increase basic rates by up to 40 per cent.

Jim Rivait of the Insurance Bureau of Canada says that’s the amount they need “to ensure the system is healthy and that the premiums meet the claims needs.”

The need for the dramatic increase is being blamed on the cost of soft-tissue injury claims.

In 2008, a judge ruled that a $4,000 cap on those claims was discriminatory.

The insurance industry says that ruling opened the door for claimants to sue for unlimited amounts.

“More people will be enticed to make a claim. It’s not just the amount of the claims but also the frequency that we are worried about,” said Rivait.

Last September, the province and the Insurance Bureau of Canada appealed the decision and asked that the cap be reinstated.

A panel of appeal judges is considering the request but there is no set date for when a decision will be made.

If the appeals court decides to reinstate the soft-tissue injury cap, the insurance bureau says it will seek only a seven per cent increase in auto insurance rates.

The Alberta Automobile Insurance Rate Board will soon begin hearings into insurance rates.

“It’s a matter of looking at the industry and keeping a reasonable level on them. We are representing the citizens of Alberta and trying to keep the level as beneficial to them as we can,” said Alf Savage, chairman of the rate board.

The hearings will begin in Edmonton in two weeks.

Just Posted

Bowden baby in need of surgery

“Help for Alexis” Go Fund Me account

PHOTO: First Rider bus safety in Red Deer

Central Alberta students learned bus safety in the Notre Dame High School… Continue reading

Red Deer dancer attends national summer school

Dancers with others from across Canada and beyond

Innisfail Airport to host convention

2019 Canadian Owners and Pilots Association’s event

WATCH: Annual Family Picnic at Central Spray and Play

Blue Grass Sod Farms Ltd. held the Annual Family Picnic at the… Continue reading

Ontario govt caps off summer session by passing bill to cut Toronto council size

TORONTO — The Ontario government passed a controversial bill to slash the… Continue reading

Updated:Italian bridge collapse sends cars plunging, killing 26

MILAN — A 51-year-old highway bridge in the Italian port city of… Continue reading

Saudi Arabia spat affecting Canadians embarking on hajj, community members say

TORONTO — Members of Canada’s Muslim community say recent tensions between Ottawa… Continue reading

Tug carrying up to 22,000 litres of fuel capsizes in Fraser River off Vancouver

VANCOUVER — The smell of diesel filled the air as crews worked… Continue reading

Woman has finger ripped off at West Edmonton Mall waterslide

SASKATOON — A Saskatchewan woman says she lost a finger after her… Continue reading

Nebraska executes first inmate using fentanyl

LINCOLN, Neb. — Nebraska carried out its first execution in more than… Continue reading

Canadian train travellers narrowly avoid deadly Italian bridge collapse

TORONTO — A pair of Canadian student travellers bemoaning what appeared to… Continue reading

Keep bribes quiet for 10 years, FIFA won’t punish you

LONDON — FIFA has officially eradicated corruption. All it took was pressing… Continue reading

Most Read


Five-day delivery plus unlimited digital access for $185 for 260 issues (must live in delivery area to qualify) Unlimited Digital Access 99 cents for the first four weeks and then only $15 per month Five-day delivery plus unlimited digital access for $15 a month