More New Insurance Regulations Unveiled
Environment and Labour (to April 1/08)
November 21, 2003 10:06 AM
New regulations clarifying the definition of minor injury in the
new auto insurance reforms were approved by government today,
Nov. 21.
The regulations ensure the auto insurance reforms which came into
effect on Nov. 1 are interpreted and applied properly by
insurance companies and the legal system to achieve the rate
reductions intended by the new legislation.
"Improving an auto insurance system is a big job. There's still
more work to be done, but these regulations are an important
measure to clarify the legislation and allow insurance companies
to get on with the job of lowering rates for consumers," said Ron
Russell, Minister responsible for insurance.
The regulation amends the auto insurance reform legislation by
clarifying terms and clauses not previously defined in the acts
or regulations. It defines terms such as "permanent," "important
bodily function," and "resolves" which are used in the act and
outlines more clearly what a personal injury does not include
(for the purposes of the minor injury cap). This will better
clarify the earlier regulations and the act by providing more
detail on the types of coma, chronic pain, serious burns and
amputations that the government wants to affirm as being exempt
from the minor injury pain and suffering cap.
The regulations also set out the standards for evidence
determination that will assist doctors, lawyers and the courts in
determining how an injury is to be assessed. It also includes a
provision, that will come into effect on April 1, 2004, which
finds individuals to have 25 per cent contributory negligence if
they are not wearing a seatbelt, as prescribed by law.
Mr. Russell said other regulations may come later, when the new
Nova Scotia Insurance Review Board is appointed and begins its
work. The new board is responsible for reviewing all future
applications for rate increase in auto insurance.
Beginning Nov. 1, all new and renewed auto insurance policies
were to be reduced by 20 per cent from the rates that were in
effect May 1, 2003. In addition, consumers will be reimbursed 20
per cent of their current policy on a pro-rated basis for the
time between Nov. 1 to when the policy expires. The reimbursement
is required to ensure consumers are not paying for services or
benefits that they cannot receive, since effective Nov. 1 all
claims for pain and suffering for minor injuries are subject to a
cap of $2,500.
A full list of the legislation and regulations is available on
the Environment and Labour website by visiting www.gov.ns.ca and
clicking on the link to Auto Insurance.
FOR BROADCAST ONLY:
New regulations clarifying the definition of minor injury in
the new auto insurance reforms were approved by government today,
(November 21st).
The regulations amend the auto insurance reform legislation
by clarifying terms and clauses not previously defined in the
acts or regulations.
The Minister responsible for insurance, Ron Russell, says
this is an important measure to clarify the legislation and allow
insurance companies to get on with the job of lowering rates for
consumers.
-30-
Contact: Valerie Bellefontaine
Environment and Labour
902-424-2575
E-mail: bellefva@gov.ns.ca
kjd November 21, 2003 10:03 A.M.
New regulations clarifying the definition of minor injury in the
new auto insurance reforms were approved by government today,
Nov. 21.
The regulations ensure the auto insurance reforms which came into
effect on Nov. 1 are interpreted and applied properly by
insurance companies and the legal system to achieve the rate
reductions intended by the new legislation.
"Improving an auto insurance system is a big job. There's still
more work to be done, but these regulations are an important
measure to clarify the legislation and allow insurance companies
to get on with the job of lowering rates for consumers," said Ron
Russell, Minister responsible for insurance.
The regulation amends the auto insurance reform legislation by
clarifying terms and clauses not previously defined in the acts
or regulations. It defines terms such as "permanent," "important
bodily function," and "resolves" which are used in the act and
outlines more clearly what a personal injury does not include
(for the purposes of the minor injury cap). This will better
clarify the earlier regulations and the act by providing more
detail on the types of coma, chronic pain, serious burns and
amputations that the government wants to affirm as being exempt
from the minor injury pain and suffering cap.
The regulations also set out the standards for evidence
determination that will assist doctors, lawyers and the courts in
determining how an injury is to be assessed. It also includes a
provision, that will come into effect on April 1, 2004, which
finds individuals to have 25 per cent contributory negligence if
they are not wearing a seatbelt, as prescribed by law.
Mr. Russell said other regulations may come later, when the new
Nova Scotia Insurance Review Board is appointed and begins its
work. The new board is responsible for reviewing all future
applications for rate increase in auto insurance.
Beginning Nov. 1, all new and renewed auto insurance policies
were to be reduced by 20 per cent from the rates that were in
effect May 1, 2003. In addition, consumers will be reimbursed 20
per cent of their current policy on a pro-rated basis for the
time between Nov. 1 to when the policy expires. The reimbursement
is required to ensure consumers are not paying for services or
benefits that they cannot receive, since effective Nov. 1 all
claims for pain and suffering for minor injuries are subject to a
cap of $2,500.
A full list of the legislation and regulations is available on
the Environment and Labour website by visiting www.gov.ns.ca and
clicking on the link to Auto Insurance.
FOR BROADCAST ONLY:
New regulations clarifying the definition of minor injury in
the new auto insurance reforms were approved by government today,
(November 21st).
The regulations amend the auto insurance reform legislation
by clarifying terms and clauses not previously defined in the
acts or regulations.
The Minister responsible for insurance, Ron Russell, says
this is an important measure to clarify the legislation and allow
insurance companies to get on with the job of lowering rates for
consumers.
-30-
Contact: Valerie Bellefontaine
Environment and Labour
902-424-2575
E-mail: bellefva@gov.ns.ca
kjd November 21, 2003 10:03 A.M.