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 media inquiries only, contact:
Julianne Jack
SGI Communications
Regina
(306) 775-6907

For all other inquiries, call 1-800-667-8015.

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