IBC poll shows support for limits on “pain and suffering” in Nova Scotia

A new poll commissioned by the Insurance Bureau of Canada (IBC) suggests Nova Scotians would support limits on “pain and suffering” compensation for auto accident victims if it leads to lower premiums.The poll, which saw 1008 residents aged 16 or older surveyed by Corporate Research Associates, shows that 33% completely and 43% mostly support limiting pain and suffering compensation on minor injuries as a means to control auto insurance premiums. Less than 20% oppose the idea to any degree.At the same time, however, opinion is split on whether limiting court-ordered pain and suffering awards is the best way to control premiums.In terms of access to tort, 73% of respondents say accident benefits should be increased only if the right to sue is restricted. Only 15% say benefits should be increased and the right to sue unrestricted.Respondents rank fixing automobiles as the priority for coverage, followed closely by rehabilitation. Pain and suffering compensation and income replacement trail these top two priorities.60% say that setting awards based on precedent has increased auto insurance costs significantly and another 10% say this has led to a moderate increase in costs.The findings largely support insurer calls for changes to the auto insurance system to limit pain and suffering awards. “Clearly, insurance consumers in Nova Scotia understand the issue,” says Don Forgeron, Atlantic vice president for IBC. “Actuarial studies conducted by IBC, and most recently by the Nova Scotia Utility and Review Board confirm that payments for non-permanent injuries are the root cause of increasing insurance premiums in this province.”Consumers, however, were less than satisfied with their current auto insurance policies. While they express satisfaction with the service provided by agents/brokers, only 40% are completely or mostly satisfied with the insurance itself.A detailed report is available at www.ibc.ca.