New Brunswick group seeks review of cap on insurance awards for minor injuries
A citizens group in New Brunswick is calling for a review of the province’s $2,500 cap on insurance awards for those who suffer minor injuries in automobile accidents.
Frances McConnachie of Consumers for Insurance Fairness says the cap has been unfairly applied to people who have been in a coma, had broken bones, or who now suffer chronic pain.
McConnachie, 48, said she received $2,500 following an accident in 2004 that has left her with back and neck problems that limit her activities. She also relies on therapy and pain killers.
McConnachie said she was able to return to her job as a head nurse in Saint John, but works with some pain every day.
“This is something I’m going to have to deal with for the rest of my life,” she said Wednesday. “I believe the government has done us a true disservice by invoking this legislation and we need to act to change what’s going on.”
The group has created a website and is encouraging New Brunswickers to lobby politicians in advance of the Sept. 27 provincial election.
“When it was originally set up, I thought it was for sprains or simple injuries or for people who are trying to scam some money out of insurance, but it is not protecting individuals like myself who are dealing with hell in our everyday lives,” McConnachie said.
The legislation was enacted by the previous Conservative government in 2003 to curb skyrocketing auto insurance rates.
Liberal Premier Shawn Graham said his party supported the cap at the time, but he didn’t say Wednesday if he thinks it’s now time to raise the cap or eliminate it. Instead, Graham said his government wants to monitor the effect of Nova Scotia’s recent move to increase their cap to $7,500.
“We’re going to be monitoring that very closely to see what impact it has on rates because we want to maintain accessible and affordable rates for all New Brunswickers,” Graham said.
The increase in Nova Scotia took effect July 1, and Graham said there hasn’t been enough time to see any impact.
Bill Adams, Atlantic vice-president of the Insurance Bureau of Canada, said it could be two years before Nova Scotia’s increase has any effect on premiums in that province.
He said the cap in New Brunswick has worked to keep premiums low, but admitted it may be time for at least a slight increase in the cap.
“The reality is that $2,500 in 2010 doesn’t buy you as much as it did in 2003, so it’s reasonable at a minimum that you might expect that a cap might be indexed, for example,” Adams said.
But Adams said most people don’t realize that the cap is only on the pain and suffering portion of an insurance award.
“The reality is, you can get up to $50,000 to pay for all the medical treatments, and assessments … that you are going to need from those injuries,” he said.
The Conservatives are promising to increase the cap, if they get elected.
“That specific increase will be based on a specific review within the first three months of a new Progressive Conservative government taking office,” said Tory Jody Carr.
Carr said the review would also determine if the definition of minor injury needs to be changed in the legislation.
Like New Brunswick, Prince Edward Island also has a $2,500 cap, while it is just over $4,500 in Alberta.
Last December, the Supreme Court of Canada refused to hear an appeal by two women who argue a fixed maximum in Alberta is discriminatory.
