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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  • Lawrence
    March 01, 2010 - 14:39

    I was involved in a motor vehicle accident a year or so ago and received serious soft tissue injuries from the accident, but due to the $2500 cap imposed by the then sitting government, here I sit still in significant pain, unable to do some of the things I did then, with no relief in site and all I got for a lifetime of pain and suffering was $2500. And thats after fighting with insurance companies to pay the medical bills I acrued that they said dont qualify for payment. Did this law save us money on insurance premiums, no, just like the bloody gun registration did not keep guns out of the criminals hands. It only kept us from defending ourselves against them.

  • a
    March 01, 2010 - 14:39

    Now there's an oxymoron,,,,serious soft tissue injury. Check into Darrel's past life as a plaintiff lawyer and then make up your mind about whose best interests he has in mind - some poor slob milking a sprain, or the lawyer who'll get 40% of the awards for having his secretary write a few letters. A $30,000 deductible and an injury threshold was placed on awards for injuries in Ontario that kept soft tissue injuries out of the courts. Magically, everybody in accidents then became diagnosed with psychological disorders. Look at the yellow pages in Halifax or Toronto and you'll see dozens of pages of lawyer ads. Look in Montreal where you can't sue for pain and suffering and there are hardly any lawer ads,,,,,and insurance costs less than 1/2 as much.