In response to concerns about fairness, the government of Nova Scotia conducted a review of the automobile insurance minor injury capin 2010. The purpose of the review was to develop and analyze alternatives to the cap and assess the fairness of compensation while ensuring that premiums remain affordable.
To inform the process, public input was sought through a discussion paper. The Office of the Superintendent of Insurance received and analyzed 220 responses that provided important information on which to base decisions regarding the cap. Summary of discussion paper responses
An actuarial study, commissioned as part the cap review, also helped inform decision making on this issue. Actuarial study final report
Legislative amendments and accompanying regulatory changes flowing from the cap review were introduced on April 28, 2010 and applied to accidents occurring on or after that date. The amendments and regulatory changes came into force on July 1, 2010.
The legislative amendments and the related regulatory changes reformed the cap by:
- amending the definition of “minor injury” to mean strains, sprains, and whiplash-associated disorders, mirroring the definition already in place in Alberta;
- increasing the pain and suffering award limit to $7,500;
- indexing the limit to inflation; and
- enabling the introduction of an optional full tort product at a later date.