Citizen’s Group calls on New Brunswick to review minor injury cap

A citizen’s group is calling on the New Brunswick government to review its $2,500 cap on insurance payments for minor injuries in auto collisions, Canadian Press reports.
The news agency cites Frances McConnachie of Consumers for Insurance Fairness saying the cap has been unfairly applied to people who have been in a coma, had broken bones or who now suffer chronic pain.
McConnachie told CP she received $2,500 following an accident in 2004 that left her with back and neck problems that limited her activities. She reports being reliant on therapy and painkillers.
In a statement, the Insurance Bureau of Canada (IBC) said auto insurance premiums in New Brunswick have decreased by 35% since the implementation of a cap on pain and suffering awards for minor injuries sustained in traffic collisions.
“Prior to the minor injury cap’s introduction, significant pain and suffering court awards for minor injuries were driving up claims costs and destabilizing the entire system,” said Bill Adams, IBC’s vice president of the Atlantic region. “Premiums shot up and the affordability of auto insurance became a serious issue.
“Today, on the other hand, New Brunswickers enjoy one of the most stable and competitive auto insurance systems in Canada,” with 67 auto insurers competing for business.
New Brunswick Premier Shawn Graham is on record as saying he is watching Nova Scotia’s move earlier this year to raise its minor injury cap from $2,500 to $7,500. In particular, he wishes to see any possible impact on insurance premiums and/or availability.