The Board’s mandate was to determine whether premiums for basic automobile insurance should be uniformly adjusted based on the industry-wide experience in the past year and what it expected to happen.

The Board said it would focus on three topics and asked for written submissions or presentations on these topics. The three topics were loss trends, the impact of a repeal of the cap on non-economic damages for minor injuries on third-party liability claims costs and the impact of the economic climate on claims costs.

Four companies – McCourt Law Offices, State Farm, The Co-operators and Wawanesa – delivered written submissions and another 12 will be presenting their submissions at meetings later this month.

The Insurance Bureau of Canada says rate increases could be just under 8 percent if the injury cap is reestablished. However, if Alberta operates under a cap-free system, Alberta drivers could see a 40 percent rate increase.

Last year, rates rose five per cent for basic coverage.

A 40 percent rate hike would add about $250 to the average premium.

The rate board will be holding meetings on June 16 and 17 and has until August 1 to make a decision on the rate change.