Increased accident benefits in effect for PEI auto insurance

Increased benefits for auto accident victims in Prince Edward Island are now in effect for accidents occurring on or after Oct. 1, regardless of when the policy was purchased.

The new provisions include changes to the minor personal injury definition (which includes strains, sprains and whiplashes that don’t cause serious impairment), and an increase on the cap on court awards for such injuries from $2,500 to $7,500.

There are also increases for medical and rehabilitation expenses, funeral expenses, death benefits, loss of income, and for the principal unpaid housekeeper, and the loss of income age limitations have been removed.

“We have been working closely with the automobile insurance industry to ensure that Islanders will have both improved rights to recover personal injury damages when they are not at fault, and improved accident benefits under their own policy regardless of fault,” Environment, Labour and Justice Minister Janice Sherry said in a government statement this week.

“The legislative changes were made last fall and are now coming into effect. We do not anticipate any increase in premium rates in the foreseeable future and we believe Prince Edward Island will continue to have the lowest automobile insurance rates in Atlantic Canada.”