In recent years, automobile insurance premiums have increased substantially in Nova Scotia as claims costs have been rising. The government adopted new measures ensuring that automobile insurance in the province remains available and affordable, and offers adequate protection to drivers.

Regulations effective November 1, 2004

The Regulations stipulate that a risk-classification system for automobile insurance cannot be subjective, arbitrary and contrary to public policy. In concrete terms, it means that the following factors can no longer be used for risk classification:

1. Any claims resulting from not at-fault incidents;
   
   
2. Any claims made 6 years before the date the policy is to be issued;
   
   
3. A lapse in coverage for a period of less than 24 months unless it was due to:
   • a conviction for driving a vehicle without a motor vehicle liability policy,
   • a driver’s license suspension resulting from an offence related to the use of an automobile, or
   • non disclosure to an insurer of an accident or conviction that would likely have led to an increase in premium;
   
   
4. Age;
   
   
5. Marital status;
   
   
6. The fact that whether or not an insured is covered by a medical, surgical, dental, hospitalization plan or an income continuation or sick leave plan.

On the other hand, the regulations specify that driving experience factor is permitted and does not contravene the age factor.

Insurers may now use membership in an organized group as a risk-classification factor and promote agreements with these groups through group marketing plans.

Regulations effective in January 2004

If you are not protected by other insurance policies such as a group or an individual medical or disability policy, and would like to increase your benefits, you will be able to purchase enhanced protection for you and your family under your automobile insurance policy.

Regulations effective November 1, 2003

The main change introduced by the government is that compensations for pain and suffering due to minor injuries are capped at a maximum of $2,500 for claims filed on or after November 1, 2003.

Individuals convicted of Criminal Code of Canada offences such as dangerous driving and flight from police are not allowed to file an insurance claim, if that incident contributed directly to the accident.

The following benefits are maintained:

• All benefits for economic loss due to serious and minor injuries, including medical benefits and loss of income;
• The right to take legal action for pain and suffering due to serious injuries.

The new law provides for the creation of the Nova Scotia Insurance Review Board, which will be responsible for approving all insurance companies' rate changes.

Please do not hesitate to contact a member of our client services team should you have any questions.