Canadian Underwriter

Court Upholds Injury Cap in Nova Scotia

February 13, 2009   by Terri Goveia

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A Nova Scotia Supreme Court judge has upheld the province’s cap on auto accident minor injuries, keeping it at $2,500.

Industry members welcomed the long-awaited decision, counting it as one victory in an ongoing defense–the Nova Scotia case, Hartling v. Nova Scotia, is one of several challenges to the minor injury cap across Canada. In making his decision, Mr. Justice Walter Goodfellow upheld the cap’s constitutional validity, and found that the regulatory definition of “resolves”—as it applied to the definition of “minor injury” was also valid.

The decision “sends a clear message that minor injury capping is a fair and sensible way to manage the affordability of auto insurance in the province,” Robin Spencer, president and CEO of Aviva Canada, said in a statement applauding the ruling.

CI will offer further coverage of the ruling once a Legal Division bulletin discussing the decision is available.

This story was originally published by Canadian Insurance Top Broker.