Public Notice
Increase in Contributions to the Public Automobile Insurance Plan
Draft Regulation respecting insurance contributions
(Automobile Insurance Act, R.S.Q., c. A-25)
Before amending the Regulation respecting insurance contributions, the Société de l’assurance automobile du Québec (SAAQ) must get the opinion of the panel of experts constituted for that purpose. The mandate given to the panel is to review the procedure used by the SAAQ and verify the data it supplies in support of the regulatory amendment it proposes to bring about.
The expert panel must hold public hearings on the automobile insurance contributions under the public plan and submit its report to the SAAQ board of directors on a date set by the board. The date scheduled is June 19, 2006.
Notice is hereby given that from the date the report is tabled, the draft Regulation respecting insurance contributions published in the Gazette officielle du Québec dated March 8, 2006 may be made by the Société de l’assurance automobile du Québec.
Here in summary are the type of regulatory amendments envisaged by the SAAQ in connection with the automobile insurance contributions under the public plan:
- To redress the financial situation of the automobile insurance trust fund, the SAAQ proposes to adjust insurance contributions starting in January 2007.
- The measures envisaged are part of a proposed plan to restore full funding over four years starting in 2007.
- The SAAQ’s proposal will safeguard the following key principles of the current plan:
- the “no-fault” principle in rate-setting and an equal sharing of the costs among the vehicles involved in an accident;
- funding of the plan by vehicle users;
- rates that are uniform, regardless of a driver's age, sex and region;
- insurance contributions based on the risks related to each category of vehicle and the behaviour of licence holders.
- The SAAQ is committed to maintaining prevention programs.
- The SAAQ proposes a new rate structure for licence holders based on their demerit points, which will better reflect the risk involved. In practice, this would mean that starting in 2007, the insurance contribution would increase starting with the first demerit point entered on a licence holder's record.
- As for motorcycles, the SAAQ intends to group them into two broad categories: "regular" motorcycles and "sport" motorcycles (see Schedule 1 of the draft Regulation) and adapt the cylinder size grouping according to the risk levels observed. It also proposes that a specific insurance contribution be required from holders with a licence to operate a motorcycle.
- With regards to commercial vehicles and other vehicles, the insurance contributions proposed take into account risk factors associated with use of those vehicles, according to their current classification.
- The draft regulation provides for the annual indexing of insurance premiums to changes in the consumer price index, starting in 2009, as is the case currently with compensation payments to road accident victims. The indexing of insurance contributions linked to passenger vehicle registration would start in 2007.
Information Document
The SAAQ has produced an information document, For a Fairer and More Sustainable Plan that explains the changes proposed. This document and the draft Regulation respecting insurance contributions are available for consultation on the SAAQ website: www.saaq.gouv.qc.ca.
A copy of those documents may also be obtained by writing to this address:
Société de l’assurance automobile du Québec
Direction des communications
P.O. Box 19600
333, boul. Jean-Lesage, O-M-51
Québec (Québec) G1K 8J6
Fax: (418) 644-5861
Public Consultation
The panel of experts will be holding a public hearing from May 8 through 10, 2006 in Montréal and from May 15 through 17, 2006 in Québec City, at these locations:
May 8 to 10
Le Centre Sheraton
1201, boulevard René-Lévesque
Montréal
From 9 a.m. to 5 p.m. |
May 15 to 17
Hilton Québec
1100, boulevard René-Lévesque Est
Québec
From 9 a.m. to 5 p.m. |
The panel reserves the right to schedule more dates and extend the hours of hearings into the evening, if warranted.
Parties interested in submitting a brief or making their comments in writing on the subject of the draft regulation must send a copy to the panel by 5 p.m. on April 10, 2006.
The rules for presentation of briefs and submission of written comments may be viewed on the expert panel's website at: www.conseilexpert.aauto.ca.
Address:
Conseil d’experts sur les contributions d’assurance automobile
C/O Mr. Michel Sanschagrin, chair
901, avenue Honoré-Mercier
Québec (Québec) G1R 5M6
Tel.: (418) 528-1885 1 866 881-3198 (toll free)
Fax: (418) 528-1961 1 866 881-3199 (toll free)
MICHEL SANSCHAGRIN, chair
Conseil d’experts sur les contributions d’assurance automobile
