Panel of Experts report
A fairer, more transparent SAAQ insurance plan
Québec City, June 21, 2006 - In releasing its report, the Panel of Experts on Automobile Insurance Contributions has noted that the SAAQ plan is among the best and least expensive of its kind in Canada, but that equity and transparency are crucial to keeping it this way. “Over time, people have come to see their contribution to the plan as a tax collected by the Quebec government. It is important that plan members view themselves as insurance policyholders, and that’s why a number of our recommendations to SAAQ and the government of Quebec promote greater fairness for members and increased transparency in insured/insurer relations.”
In this respect, the Panel of Experts feels that SAAQ should make it a priority to deliver members a clear message that contributions are and will be used for the intended purpose. It recommends that policyholders be told right now what their required contributions will be for the next three years, and that SAAQ quickly determine and notify members of future contributions by vehicle category from now until the end of the financial adjustment period.
In addition to this general principle, the Panel also suggests making members aware of what they are paying for by clearly distinguishing in invoices amounts paid into the Insurance Fund (driver’s licences, demerit points, and registration) or collected for other purposes (government taxes and fees). In the interest of simplicity, the Panel would like driver’s licence and registration renewals to be harmonized. Considering that a portion of insurance costs goes toward the driver’s licence and the rest toward registration, this change will also help plan members keep track.
Last, in the interest of equity with other public insurance plans, the Panel recommends that the Government of Quebec repeal the current 9% sales tax. It would also like plan members to have the option of spreading out payments—as with most insurers—and receive a discount for having a clean record.
According to the Panel chair, the more information SAAQ provides regarding plan contributions, the more readily plan members will accept the idea that this is insurance and that premiums are determined according to risk. Understanding this point is particularly important as contributions rise.
Information: Sonia Corriveau
Optimum Public Relations
(418) 930-0094
Source: Pierre Noël
Communications Coordinator
Panel of Experts on Automobile Insurance Contributions
