When an individual is still alive or owns property he or she is under prone of encountering risks. In this case a risk as generally known is any unforeseen calamity which when it occur it brings about a loss, insurance companies plays a vital role of taking people back to the state they were before the risk occurred. In our discussion below were are going to look into details about public auto insurance; a system of insurance where the government outlines the policies and the cost of insuring cars. The system is popularly used in many parts of Canada (Anish, 2012).
Why the Canadian government choose public auto insurance.
The Canadian governments choose to be in control and have full ownership of the auto insurance as a way of reducing cost of insuring cars. The cost of insuring cars was very high due to increased cases of cars being stolen thus, making the private insurance companies to charge a high cost. Through the use of government employees as law enforcers the government agencies were able to cut down the cost of insurance vehicles and hence making public auto insurance popular (Anish, 2012) .Examples of Canadian agencies that offer public auto insurance include: Monitoba public insurance , the insurance corporation of British Colombia and Societe de I’ assurance automobile (Kristina, 2016) .
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The public auto insurance works in a way that makes it citizen friendly at each territorial level .Through working closely with other non-governmental established agencies. The state outlines the rules, specifies the price of the covers and then they leave the agents with the responsibility of selling insurance covers. The non-governmental agencies are also given the right to register drivers and issuing driving licenses. In public auto insurance the insurer should cater for all loses incurred by the insured as long as the insurer is still in