IBC proposes changes to NB minor injury cap

New Brunswick’s Auto Insurance Working Group is reviewing whether the province’s $2,500 cap on pain and suffering awards for minor personal injuries should be adjusted. The Group is also looking at the definition of what constitutes a “minor personal injury.”

Currently, the legal definition is as follows:

“Minor personal injury” means an injury that does not result in:

a) Permanent serious disfigurement

b) Permanent serious impairment of an important bodily function caused by a continuing injury which is physical in nature. “Serious impairment” means an impairment that causes substantial interference with a person’s ability to perform his/her usual daily activities or regular employment

The Insurance Bureau of Canada (IBC) announced that it is proposing an increase from the current cap of $2,500 and indexing it to inflation. IBC also recommends amending the “minor injury” definition.

“There is no question that the cap helped reduce auto insurance premiums for New Brunswick drivers.  IBC believes that capping non-economic losses for minor injuries is a fair and reasonable way to control costs,” said Bill Adams, Vice-President, Atlantic, IBC, in a statement.

He added: “But that does not mean there isn’t room for improvement. There have been concerns expressed that some people injured in car collisions may have been unfairly captured under the cap. If that is the case, we should make amendments to ensure that all injured victims receive fair compensation.”

IBC said that the percentage of New Brunswickers’ average annual salary spent on auto insurance increased from 2.5 percent in 2000 to 3.5 percent in 2003, after the cap was introduced.

The Auto Insurance Working Group is holding a series of public hearings, set from 6:30 to 9:30 p.m. on the following dates:

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