Nova Scotia launches first part of auto reforms

Drivers in Nova Scotia are now receiving enhanced medical benefits and will not face premium increases if they cover damage costs from car accidents themselves.

The reforms, introduced Apr. 1 as part of the first phase of “fair auto insurance package” announced by the provincial government last fall, increase medical and rehabilitation expenses to $50,000 from $25,000 and loss of income to $250/week from $140/week. Funeral expenses, death benefits and costs for principal unpaid housekeeper were also raised.

Under the reforms, drivers in the province can also report a collision to their insurer without affecting their premium if no claim for damages is made.

Other measures include a levy paid by the insurance industry to volunteer fire departments for the costs incurred in responding to vehicle accidents and a periodic review process to ensure automobile law in Nova Scotia is up-to-date.

The fair auto insurance reforms are based on recommendations from an independent auto insurance review process, which involved consultation with insurance companies, associations and brokers. The second phase of reforms, which will include treatment protocols for minor injuries, is slated for implementation April 2013.