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    • N.S. reforms cap on awards for minor injuries
        (Copyright Thompson’s World Insurance News
        Not to be redistributed by individual recipients.)
        Nova Scotia has decided to reform its cap on pain and suffering awards for minor auto accident injuries with a new definition and an increase for the limit from $2,500 to $7,500.
        The changes are now in effect.
        The Finance Ministry said amendments to the Insurance Act and related regulatory changes will replace the existing minor injury cap on pain and suffering awards for injuries resulting from auto accidents with measures that “balance concerns raised about the fairness with the need for affordable, stable premiums for all Nova Scotia drivers.”
        The amendments and related regulatory changes will reform the existing cap by amending the definition of “minor injury” to mean strains, sprains, and whiplash-associated disorders — mirroring the definition used in Alberta.
        The government will also be indexing the award limit to inflation and it will enable the introduction of optional full tort coverage at a later date.
        The ministry said the changes focus only on reforms to the cap on pain and suffering awards for minor injuries but “further changes to Nova Scotia’s insurance regime may be considered under the broader insurance review planned for 2010-2011.”
        The legislative amendments and accompanying regulatory changes to the definition of the cap apply to accidents occurring on or after April 28, 2010, but come into force on July 1, 2010 to allow insurance companies time to make necessary system changes. The government said that an exception to this, the introduction of optional full tort coverage, will require additional time to complete.
        More in our May 3, 2010 edition
        
    		 


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