IBC open to “modest, one-time” increase to New Brunswick’s minor injury cap, indexing cap to inflation

The Insurance Bureau of Canada (IBC) believes the New Brunswick insurance market could sustain a “modest, one-time” increase to the province’s $2,500 minor injury cap, and recommends the cap be indexed annually to inflation.
IBC also recommends changing the province’s definition of a minor injury to Alberta’s definition.
The trade association representing Canada’s home, auto and business insurers made its recommendations in connection with New Brunswick’s current review of the province’s minor auto injury cap and minor injury definition.
IBC made its recommendations to the New Brunswick Auto Insurance Working Group, which will be holding seven Town Hall meetings around the province in the coming weeks.
The minor injury cap in New Brunswick applies to damages for pain and suffering. It does not apply to the amount an insured can receive in compensation for medical and rehabilitative services, lost income or other costs incurred as a result of the minor injury.
IBC does not specify a precise value by which the minor injury cap might be raised. “Any change to the amount of the cap should be actuarially reviewed to determine anticipated effects on premiums,” IBC says in a press release. “Dramatic changes to the cap are likely to introduce new incentives in the injury compensation system.”
IBC also said it supports changing New Brunswick’s definition of a minor injury to the definition now used by Alberta and recently adopted by Nova Scotia.
In Alberta, a minor injury is defined as a sprain, strain or whiplash injury that does not result in ongoing effects on individuals’ ability to return to their pre-accident occupation and activities of daily living.