Nova Scotia keeps minor injury cap, triples limit to $7,500

Nova Scotia has kept its minor injury cap on pain and suffering awards for automobile accident injuries, but tripled its maximum limit to $7,500.

The government announced amendments to the Insurance Act and draft regulations on Apr. 28. The amendments and regulatory changes will:

• amend the definition of minor injury to mean strains, sprains and whiplash-associated disorders, mirroring the definition used in Alberta;

• increase the maximum pain and suffering award limit to $7,500;

• index the cap limit to inflation; and

• enable at a later date the introduction of optional full-tort coverage, which would allow injured persons to seek greater compensation.

“The new measures will apply to injuries on or after today,” the government announced in a release. “The amendments and regulatory changes will come into force July 1 to allow insurance companies time to make necessary system changes.”

Nova Scotia Finance Minister Graham Steele told the CBC that the “changes won’t be retroactive . . . because that would have cost $69 million and driven up premiums for all drivers.”

“Optional full-tort coverage requires additional time to develop,” the government added in its release. “Government will conduct a broader review of automobile insurance this fiscal year.”

The amendments represent the government’s response to a public discussion paper it launched earlier in 2010. The consultation paper was part of a cap review promised during Nova Scotia’s election campaign in 2009.