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    • Injury cap 2: N.B. watching developments
        (Copyright Thompson’s World Insurance News
        Not to be redistributed by individual recipients.)
        New Brunswick’s Justice Minister has said he wants to look at the facts before making any changes to the province’s limit for insurance payouts on minor injuries.
        Kelly Lamrock said he doesn’t want to do anything that could result in increased rates or availability problems but he will be keeping a close eye on what happens in Nova Scotia.
        His comments came following the tripling of the cap for pain and suffering payouts in Nova Scotia from $2,500 to $7,500. New Brunswick’s cap remains at $2,500.
        Mr. Lamrock said New Brunswick will study the decision in Nova Scotia to change its compensation limit, but that kind of change may not be the right thing for his province.
        He noted that when Nova Scotia announced the changes, its Finance Minister Graham Steele said they wouldn’t have a negative effect on rates.
        “We are absolutely confident, absolutely confident, that these changes can be absorbed without an increase in automobile insurance premiums,” he said.
        The N.S. changes won’t be retroactive. That would have cost $69m and driven up premiums for all drivers, Mr. Steele said.
        Mr. Lamrock said if rates remain low there it will be hard for New Brunswick too ignore it.
        “If Graham Steele is proven correct, that would be of interest to me.
        “Certainly, one always wants to be very careful. There are cases where governments have moved aggressively and insurance companies suddenly start denying 2,000 or 3,000 people coverage.”
        More in our May 10, 2010 edition
        
    		 


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