Evans scoffs at hefty increase demanded for auto insurance

Finance Minister Iris Evans is scoffing at a suggestion by the auto insurance industry that a 40 per cent premium increase is justified for Alberta drivers.

EDMONTON — Finance Minister Iris Evans is scoffing at a suggestion by the auto insurance industry that a 40 per cent premium increase is justified for Alberta drivers.

Hearings before the auto insurance rate board begin later this month.

Jim Rivait of the Insurance Bureau of Canada says a hefty hike is required after a court ruling last year struck down a cap on payouts for soft tissue or whiplash injuries.

Evans points out that the insurance industry sought a similar rate increase at hearings a year ago and was largely rejected by the auto insurance rate board.

The board increased rates for the mandatory portion of auto insurance by only five per cent.

The finance minister says the inflated demands have led her to no longer pay serious attention to the insurance bureau in advance of the hearings.

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