N.S. to lift cap on car injury payouts

Nova Scotia Premier Darrell Dexter is ready to ditch the $2,500 limit on payouts for car accident victims who suffer soft-tissue injuries.

Dexter reaffirmed his commitment to scrap the cap on Thursday, though a government-commissioned study is not complete.

"The $2,500 cap will not be in place after the review is over," the premier told reporters.

"Insurance, after all, is a product that is designed to protect people. If you exclude people from protection through a $2,500 cap, then by definition you're not delivering the product that's being paid for."

The cap was introduced by the Progressive Conservative government of John Hamm, which promised voters during the 2003 election campaign that it would bring down insurance rates by 20 per cent.

Three accident victims went to court arguing that the provincial law is discriminatory under the Charter of Rights and Freedoms, but the Nova Scotia Court of Appeal recently upheld the legislation.

Dexter said he's waiting for the study, due by the end of the year, before deciding the next step.

"I do want an opportunity to have a look at that work that has been done," he said.

Dexter said one way to protect insurance companies against frivolous lawsuits is to impose a deductible on payouts.