Nova Scotia Insurance Changes Introduced

April 28, 2010 2:43 PM – Concerns about the fairness of the minor injury cap on pain and suffering awards for automobile accident injuries have been addressed with amendments to the Insurance Act and draft regulations introduced today, April 28.

“We are replacing the existing cap with measures to ensure both fair compensation for accident victims, and affordable, stable premiums for all of Nova Scotia’s drivers,” said Finance Minister Graham Steele.

The amendments and regulatory changes will:

  • amend the definition of minor injury to mean strains, sprains and whiplash-associated disorders, mirroring the definition used in Alberta
  • increasing the maximum pain and suffering award limit to $7,500
  • index the limit to inflation
  • enable the introduction of optional full-tort coverage, which allows injured person to seek greater compensation, at a later date

The new measures will apply to injuries on or after today. The amendments and regulatory changes will come into force July 1 to allow insurance companies time to make necessary system changes.

Optional full-tort coverage requires additional time to develop. Government will conduct a broader review of automobile insurance this fiscal year.

Responses to a public discussion paper and the findings of a an actuarial study were used to help make the insurance changes.

Information on the changes is available at