Go to navigation Go to content
Toll-Free: (888) 579-3262
Phone: (709) 579-4000
Ches Crosbie Barristers

How To Improve Auto Insurance In Newfoundland And Labrador

Comments (0)

Currently, residents of Newfoundland and Labrador are required by law to carry a $200,000 limit in third party liability insurance (Section A). This limit was set about 30 years ago. With the effects of inflation, the limit should be closer to $500 000 - That’s the mandatory insurance limit in Nova Scotia. Raising the limit of third party liability insurance to $500,000 is something that raod safety organizations want to see in Newfoundland and Labrador.

As a separate issue, Newfoundland and Labrador is the only province in Canada where accident benefits, which are available on a no fault basis as Section B benefits, are not mandatory. Those who do not carry Section B benefits can get into a situation where they’re unable to work due to car accident injuries without compensation. Unfortunately, people in this situation are usually the people who need Section B benefits the most. People who do have Section B benefits are looking at $140 per week compensation from the insurance company. This is far too little and forces people in this situation to live below the poverty line.

Let’s have a hard look at updating the mandatory insurance requirements set out in the Automobile Insurance Act. Car accidents happen, and social responsibility requires financial responsibility when they do happen.

Be the first to comment!

Post a Comment

To reply to this message, enter your reply in the box labeled "Message", hit "Post Message."


Email:* (will not be published)


Notify me of follow-up comments via email.