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.