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September 29, 2014
For immediate release
Automobile insurance benefits increase
Environment, Labour and Justice
Automobile accident victims will be able to access improved rights to recover for pain and suffering and enhanced accident benefits effective October 1, says Environment, Labour and Justice Minister Janice Sherry.
“We have been working closely with the automobile insurance industry to ensure that Islanders will have both improved rights to recover personal injury damages when they are not at fault, and improved accident benefits under their own policy regardless of fault,” said Minister Sherry. “The legislative changes were made last fall and are now coming into effect. We do not anticipate any increase in premium rates in the foreseeable future and we believe Prince Edward Island will continue to have the lowest automobile insurance rates in Atlantic Canada.”
Under the new provisions, there are changes in the definition of minor personal injury, and the cap on court awards for such an injury has been raised from $2,500 to $7,500. Minor personal injuries are strains, sprains and whiplashes that do not cause serious impairment. In addition, under the automobile policy there are increases for medical and rehabilitation expenses, funeral expenses, death benefits, loss of income, and for the principal unpaid housekeeper. As well, the loss of income age limitations have been removed. Automobile Accident Benefits chart.
The changes are effective for accidents occurring on or after October 1, regardless of when the policy was purchased.
“I would like to thank the automobile insurance industry for its cooperation in making these changes,” said Minister Sherry. “As well, I would also like to take this opportunity to encourage everyone to drive safely to reduce accidents and risks.”