N.B. insurance cap too low: group

A citizens group in New Brunswick is calling for a review of the province's $2,500 cap on insurance awards for those who suffer minor injuries in automobile accidents.

Frances McConnachie, of Consumers for Insurance Fairness, said the cap has been unfairly applied to people who have been in a coma, had broken bones or who now suffer chronic pain.

McConnachie said she received $2,500 following an accident in 2004 that has left her with back and neck problems that limit her activities and make her reliant on therapy and pain killers.

She said accident victims are suffering.

Premier Shawn Graham said his government is watching to see if Nova Scotia's move to increase the limit to $7,500 has any impact on insurance premiums or accessibility.

Progressive Conservative MLA Jody Carr said that, if elected, his party would increase the cap and hold hearings to determine the amount within three months of taking power. The next provincial election in New Brunswick is set for Sept. 27.

Bill Adams, Atlantic vice-president of the Insurance Bureau of Canada, said the cap has worked to keep insurance premiums low, but it may be time to index it to keep up with inflation.

He said the cap is only for the pain and suffering portion of the insurance award, and people with minor injuries can still get up to $50,000 for medical treatment.

Prince Edward Island also has a $2,500 cap, while Alberta's is just over $4,500.