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Auto insurance review recommends increasing cap on minor injury claims

 FREDERICTON – A review of auto insurance in New Brunswick recommends that a cap for minor-injury compensation be raised.

The current cap for pain and suffering was set in 2003 at $2,500. The review suggests raising that level to between $4,000 and $6,000.

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Bernard Lord’s Tory government brought in the cap in an effort to halt increases in insurance premiums. Opponents say that cap is too low, and too many injuries, including broken bones, are being labelled as minor.

Michel Leger, chairman of the government-appointed review group, says that’s why the most important recommendation is for a change in the definition of what is considered a minor injury.
The new definition includes a sprain, strain or whiplash-associated disorder that doesn’t last more than six months.

Leger says the provincial government needs to look at a case study and actuary report from the insurance industry before setting a new cap.
 

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