Thank you, Mr. Speaker. I have a return to an oral question asked by Mrs. Groenewegen on June 12, 2003, with regard to government sponsored insurance programs.
The Government of the Northwest Territories regulates insurance companies operating in the Northwest Territories through the NWT Insurance Act. The Department of Finance, through the superintendent of finance, is responsible for administering the act.
The superintendent of insurance does not approve rates charged by insurers or standard risks. Automobile insurance premiums charged to the residents of the NWT are significantly below premiums charged to residents of Alberta.
For example, for high risk drivers, property damage and public liability coverage of $1 million costs $1,979 annually in Alberta, but only $569 a year in the NWT.
Accident benefits coverage costs $132 a year in Alberta, but only $46 annually in the NWT. Low automobile rates charged to residents of the NWT are due to the low risk road system and dry weather. NWT automobile insurance premiums are lower than those charged in any province.
The office of the superintendent of insurance continues to review rate changes filed by the Facility Association, an association of insurance companies which insures all high risk applicants and to monitor premium rate changes in the standard insurance market. Insurance brokerages and the superintendent of insurance have received some complaints regarding the availability of insurance, but relatively few complaints with respect to increases in premiums. The superintendent of insurance has not received any complaints regarding the level of insurance premiums.
Given the small population of the Northwest Territories, a government-run insurance program would not be economically feasible. Thank you.