What a Minor Injury Cap Could Mean for NL

​Introducing a cap on minor injuries is the quickest action the NL government can take that is proven to address the most pressing issues facing NL drivers: high insurance rates and too few insurance companies to choose from. In other provinces, including New Brunswick (NB) and Nova Scotia (NS), a cap has brought annual insurance costs down.

What is the cap and what will it do?

The cap is a maximum amount that would be paid out for “pain and suffering” damages when you make a minor injury claim as a result of a collision. It would apply whether you were a driver or passenger, or even a pedestrian.

The capped payment is in addition to other payments your auto insurance policy (or if you’re a passenger, the driver’s insurance policy) covers, such as compensation for your lost wages/time off work, medical bills and getting your car fixed.

Big-dollar payouts for the non-financial impact of minor, short-term injuries create a very expensive auto insurance system. By putting a cap on these payouts in specific circumstances, insurance rates can be stabilized for all drivers.

A cap system could also work well with another recommendation of the insurance industry: pre-approved treatment protocols that get you, the victim, into treatment faster, and give you a personalized recovery plan that evolves as you heal. NS and Alberta have these programs and they are working well for consumers, medical practitioners and insurers.

The benefits of this system are:

  • Keeps all your current protections and policy benefits: your auto policy would pay these first
  • Allows faster access to treatment: no need for multiple medical assessments
  • Enables faster recovery time under the treatment protocols
  • Reduces wait times for claims processing and payment
  • Offers more treatment benefits for collision victims (we’re advocating to double them)
  • Maintains your current rights: you can still sue the at-fault driver under a cap system
  • Over time, insurance rates will stabilize.