New Brunswick lawyers fight injury cap

Recent reports tell us that the Canadian Bar Association is trying to revoke the minor personal injury cap in New Brunswick. On April 20, the Canadian Bar Association’s (CBA) New Brunswick branch called on the provincial government to do away with the Injury Regulation which caps minor personal injury awards at $2,500.

This $2,500 minor personal injury cap was adopted in 2003 after what the Association calls intense lobbying of the insurance industry. At the time, the industry blamed the dramatic increases in premiums on bodily injury claims which it said were spiraling out of control.

The CBA released an economic report which shows that disputes bodily injury claims were a factor in the premiums increase from 1999 to 2004.

The CBA-New Brunswick says the fact that the premise under which the Injury Regulation was brought in has now been shown to be unsubstantiated by the insurance industry’s data. The CBA states that should alone justify rescinding it.

The Association says that while car accident victims are directly affected, all New Brunswick residents are affected indirectly because of the substantial financial drain on the New Brunswick economy. They say that since 2003, more than $270 million have left the province for insurance company coffers.