Alberta Auto Committee Findings Battlecard

suomisuomi
in AB.Auto

• high premiums were caused by increasing bodily injury costs
(specifically non-pecuniary awards for pain & suffering due to the tort system)
• no mechanisms existed to control these BI costs

Bullet point #1, aren't non-pec awards capped at 100K? Why would it still be driving BI costs?
Bullet point #2, doesn't AB now have a 4K cap on minor injuries (Morrow v Zhang)? So there technically is a mechanism to control BI costs?

Thanks,

Comments

  • Staff-T1Staff-T1
    1. Even if they are capped but you get a bunch of them then they would still add up to large amounts
    2. I guess technically yes. But the regulation only targets minor injuries. I don't think minor injuries are the main driver?
  • suomisuomi

    I guess it's just strange to me that non-pec awards even though they are capped would still be driving the cost. I guess if there wasn't a cap, then Auto insurance would virtually be unaffordable if it's this bad already with a cap?

  • Staff-T1Staff-T1

    I think it's hard to tell without seeing the actual numbers broken down by category ~ Right now we are just speculating

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