A Cap Will Not Lower Premiums


When asked if a cap will lower insurance rates in Newfoundland & Labrador:

“I think…no. I think, in fairness, the short term or immediate term goals are the objectives of the reforms; to get the premiums stabilized. And, I think, in the long term, our hope is that we can implement more technology and innovation in the province that will help us to drive down the cost of premiums.” 

Natalie Higgins of Intact Insurance told the St. John’s Morning Show Friday, April 13, 2018


Big Insurance Wants to Add Insult to Injury

The insurance industry is asking the Government of Newfoundland and Labrador to take away your rights to fair compensation if you’re injured in a traffic incident. They want the province to set a “cap” on what a victim can receive for pain and suffering.

What the insurance industry is proposing will harm people in our province, while building bigger profits for national and multinational insurance conglomerates.

There’s a lot at stake—including your right to access justice if you are injured by a motor vehicle.

This website can help you understand the facts and take action to stop the cap—before it’s too late.

What’s a “cap”?

A cap is a legislated maximum that an insurer would have to pay you for pain and suffering for certain types of injury. You could receive less than the cap, but not more—even for injuries that significantly impact your life and for which a court would currently award $30,000, or $40,000, or higher.

A cap on compensation takes away a victim’s right to go to court and ask a judge to decide what’s fair. It takes away access to justice.


Who benefits from a cap?

A cap would harm anyone—including passengers, pedestrians and cyclists—who get hurt in a traffic incident. A cap would benefit national and multinational insurance conglomerates who want bigger profits, while also protecting the distracted or impaired drivers who cause collisions. 

What kinds of claims would be capped?

The insurance industry wants to limit payouts for what is usually called “pain and suffering.” This refers to non-financial damage such as physical pain, psychological trauma, and the inability to participate in normal activities. While it’s easy to attach a cost to property damage, crutches and painkillers, it’s much harder to put a price on the moments you could miss due to an injury.

A motor vehicle accident can leave a person in tremendous pain, unable to move or sleep comfortably, and sidelined from daily activities like lifting a baby, playing with a child, maintain a house, staying fit, riding a quad or enjoying a game of rec hockey.

The insurance industry thinks the moments of your life have very little value.

An overwhelming majority (81%) of Newfoundland & Labrador residents do NOT support a system where an insurance adjuster for the party who caused your injuries has the power to tell you what your pain and suffering is worth.


How small will the cap be?

The cap could be as low as $2,500. That’s where it was set in Nova Scotia, New Brunswick and PEI when the insurance industry succeeded in taking away victims’ rights in those provinces more than a decade ago.

Meet some real victims who were hurt by caps in other provinces.

How can I stop the cap?

Say NO to the cap by signing the Petition. Share this site with your family, friends and social media community. Join the conversation on Facebook and Twitter. Together, we must tell our government that legislation benefitting big insurance conglomerates but harming people in our province is not acceptable.

Learn The Facts about rising insurance profits, declining accidents in NL, inflated premiums, and more.