IBC concerned by uninsured claims in NL

Published: June 23, 2017

Updated: July 24, 2018

Author: Luke Jones



The Insurance Bureau of Canada (IBC) says Newfoundland and Labrador has more claimants per capita for accidents with uninsured drivers than any other province.  

Amanda Dean, IBC Atlantic vice-president, says the level of incidents with uninsured drivers is concerning:

“That is concerning because what that tells us is there’s a higher number of uninsured drivers creating claims, whether it’s injuring other people, or running into a car and causing damage to that car, or even running into a home and causing damage,” Dean told CBC.

Insurance companies are losing out due to the increasing number of such collisions. In the province, drivers involved in a collision with an uninsured must claim under Section D of a policy. This is coverage that means their own insurance provider pays out on the claim. Section D is a mandated policy point in Newfoundland and Labrador.

With Section D claims increasing, insurance companies are being forced to raise premiums, affecting honest motorists who pick up the cost of uninsured drivers. IBC data from 2015 shows the total value of insurance claims in the province was over $266 million, a huge number considering a population of just 528,000.

“When you consider that some of these claims are driven by folks who have no insurance, there’s clearly a problem out there,” she noted.

In 2016, Royal Newfoundland Constabulary caught 743 drivers operating a vehicle without insurance. Furthermore, RCMP issued an additional 296 tickets for uninsured vehicles.