Understanding Nova Scotia’s Minor Injury Cap

If you have been in a car accident in Nova Scotia that was caused by another driver and suffered injuries, you may be entitled to receive compensation for the impacts of those injuries to your daily life. Your personal injury claim can have many different components, including claims for pain and suffering, loss of income, past and future care costs and more. When you’re speaking to the at fault driver’s insurance, they may try to tell you that your injuries are “minor” and as a result that your claim is limited by the minor injuries cap. But what exactly is the minor injury cap and what does that mean for you?

In Nova Scotia, the minor injury cap is an important aspect of the province’s auto insurance system, designed to limit compensation for injuries deemed “minor” following a motor vehicle accident. It aims to balance the needs of accident victims with the goal of keeping insurance premiums affordable and preventing excessive litigation. However, the cap has been a topic of debate since its introduction, with proponents suggesting there are benefits for both consumers and the insurance industry, while critics argue it limits fair compensation for injury victims in order to increase profits for insurers. 

What is the Minor Injury Cap?

The minor injury cap, in simple terms, is a financial limit on the amount of compensation a person can receive for injuries that are classified as “minor” following a car accident. Under Nova Scotia’s insurance system, certain types of injuries are considered “minor,” and compensation for pain and suffering is restricted to a fixed amount.

This cap can apply to injuries such as some soft tissue damage (e.g. certain sprains, strains, whiplash) which are often harder to quantify in terms of long-term impact but are nonetheless real and painful for the individuals who experience them. 

How Does the Minor Injury Cap Work?

The cap specifically limits compensation for non-pecuniary damages—that is, pain and suffering or emotional distress—related to minor injuries. It applies to injuries that fall into the “minor injury” category, which includes a range of injuries typically caused by a vehicle collision, such as:

• Certain whiplash (neck strain) injuries
• Certain soft tissue injuries
• Some muscle sprains or strains
• Some contusions or bruising

If an injury is deemed minor, the injured party is limited to a fixed compensation amount for pain and suffering. The year of your accident determines the cap amount that applies. Since 2010, the cap amount has been adjusted annually to account for inflation. 

The Cap limit for each year is as follows:

• In 2018 it was $8,579, 
• In 2019 it was $8,768, 
• In 2020 it was $8,911,
• In 2021 it was $8,937,
• In 2022 it was $9,300, 
• In 2023 it was $10,000.

In Nova Scotia, as of 2024, the cap on minor injury claims is set at $10,402. 

When Does the Minor Injury Cap Not Apply?

There are some important exceptions to the minor injury cap. If a person’s injury is deemed to involve a “serious impairment”, then the cap will not apply. Injuries that have a neurological component or involve nerve damage may not fall under the cap. Also, psychological injuries such as post-traumatic stress disorder, generalized anxiety disorder, etc. are excluded from the cap.  If you have scarring from cuts or abrasions, they may also be considered separately from the cap amount. 

Injuries that are deemed to be “serious” are ones that negatively impact your ability to perform any or all of the following activities:

• Essential duties of your employment;
• Essential duties of your job training or education; or 
• Normal, daily activities. 

In these cases, your injuries must have been ongoing since the accident, and they must not be expected to dramatically improve. 

In such cases, the injured party may be entitled to compensation beyond the cap. Furthermore, the cap does not apply to economic losses like medical expenses or lost wages, which are assessed separately.

How Can a Personal Injury Lawyer Help?

It can be difficult to determine whether your injuries are limited by the minor injuries cap, and that’s where the experienced legal team at Pressé Mason can help. You should always get independent legal advice on the value of your claim and whether your injuries fall under the minor injury cap before negotiating with an insurance company.  Contact us today to find out how much your personal injury claim is worth and let us help you get a fair result.  Our experienced team will do everything possible to get you the best available outcome.