New Brunswick launches review of the province’s $2,500 auto insurance cap

New Brunswick is officially pressing ahead with its promised review of the province’s $2,500 cap on minor auto injuries, with a task force expected to engage in public consultation and then issue a report sometime around May 2011.

The working group will carry out its review and conduct consultations in two specific areas:

• the adequacy of the $2,500 cap and the impact of an increase to the cap comparable to neighbouring jurisdictions on average premiums; and

• the current definition applied to soft-tissue damage and the effects of any recommended changes that might be made.

The provincial government announced on Nov. 4 that it is responding to concerns about the $2,500 cap on awards for accident victims and the legal definition of soft-tissue injury by creating a working group tasked with ensuring the current legislation is fair and reasonable.

The working group is to consult with New Brunswickers, consumer groups, legal professionals, the insurance industry and other stakeholders about the cap and the legal definition of soft tissue injury under the province’s Insurance Act.

“We want to ensure that people injured in car accidents are getting the help they need, while safeguarding the stable auto insurance rates New

Brunswickers have come to expect,” said Justice and Consumer Affairs Minister Marie-Claude Blais. “Seven years have passed since the current rules were adopted, so we feel it is time to take another look at this issue to make sure the compensation and the legislation are appropriate.”

The chair of the working group will be selected by the provincial government and is expected to hand in a final report within six months. •