NS injury cap increase will raise third party liability-bodily injury claims cost by 17%

The Nova Scotia Utility and Review Board has found that the province’s tripling of the minor injury cap from $2,500 to $7,500 will result in a 17 percent increase in third party liability-bodily injury (TPL-BI) claims costs.

The Board made the finding after a hearing of the cap’s effect on the auto insurance industry in Nova Scotia. Among the findings:

1. The minor injury reforms, including the increased cap and change in definition, will result in an increase of 17% in TPL-BI costs.
2. Industry-wide rates are adequate to absorb the 17% increase in TPL-BI costs.
3. The Board accepts a 0% future loss cost trend for TPL-BI.
4. The Board will continue to monitor trend data at regular intervals.
5. The Board will hold a formal paper hearing in the fall of 2012 to examine any impact of the minor injury reforms.
6. Any concerns the Board has about historically high ROEs can be managed as part of the mandatory filing and review process.

To read the full decision, click here. (PDF)

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