N.S. govt reviews $2,500 insurance cap for minor injuries in car crashes

The Canadian Press ~ The News
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HALIFAX - The Nova Scotia government has started reviewing the $2,500 limit on insurance claims for minor injuries suffered in car crashes, the minister responsible for the Insurance Act says.
Graham Steele says he's expecting a discussion paper on the matter to be completed within two weeks.
The NDP government plans to remove the cap and bring forward a proposal during the next session of the legislature.
The Conservative government of John Hamm put the $2,500 cap in place in 2003 as part of a strategy to lower insurance premiums.
The NDP government hasn't decided when to lift the limit or whether the move would be retroactive.
Premier Darrell Dexter has suggested introducing a deductible to weed out those with minor and questionable claims.
But Steele says a public insurance option - as the NDP previously advocated - won't be an option if the current system is working.
Changes to the Insurance Act made in November 2003 capped awards at $2,500 for pain and suffering from minor injuries resulting from crashes.
The limit was to make up for a 20 per cent rollback on auto insurance rates and a one-year rate freeze.
In January, a Nova Scotia Supreme Court decision found the province's cap on settlements does not discriminate against people with soft-tissue injuries.
An appeal of that decision has been filed.

Organizations: NDP, Nova Scotia Supreme Court

Geographic location: HALIFAX, Nova Scotia

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