There’s no question the $2,500 insurance cap in Nova Scotia will be gone next year. The question is what will replace it.
Premier Darrell Dexter confirmed Thursday his government plans to bring in spring legislation to kill the cap on soft-tissue and other minor injuries suffered in car accidents, claiming the cap has unjustly excluded people with severe injuries from seeking compensation.
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“The cap is not fair to people who have suffered serious injuries,” Dexter said via teleconference from Copenhagen. “Definitions that were included in the legislation do not accurately provide for a fair system.”
But they haven’t determined whether to bring in a new system to limit frivolous claims. One option mentioned by Dexter was to introduce a deductible system. A pre-determined amount would be deducted to act as a deterrent to unwarranted claims.
A government paper on insurance options is near completion and will set the framework for next year’s legislation.
Deputy Premier Frank Corbett said he wasn’t worried about frivolous claims driving up insurance prices.
“That’s between the insurance company and the people who buy the policies. If the claim is frivolous, then it doesn’t get paid. It’s as simple as that,” he said.