Halifax, Nova Scotia – The Insurance Bureau of Canada (IBC) is proposing changes to New Brunswick’s auto insurance cap on pain-and-suffering awards for minor injuries.
The proposed changes include increasing the cap’s amount from the current $2,500 and indexing it to inflation, and amending the definition of “minor injury.”
“There is no question that the cap helped reduce auto insurance premiums for New Brunswick drivers,” said Bill Adams, vice-president, Atlantic, IBC. “IBC believes that capping non-economic losses for minor injuries is a fair and reasonable way to control costs. But that does not mean there isn’t room for improvement. There have been concerns expressed that some people injured in car collisions may have been unfairly captured under the cap. If that is the case, we should make amendments to ensure that all injured victims receive fair compensation.”
The proposed changes were submitted to the New Brunswick Auto Insurance Working Group, which has a mandate from the province’s Minister of Justice & Consumer Affairs to review the cap and definition, and provide recommendations.
As part of its review, the Working Group will hold seven Town Hall meetings around the province in the coming weeks to hear the public’s thoughts on the issue. For information on the meetings, visit Insurance Working Group.