For car owners in Nova Scotia, August 1, 2015, was an important day. It was then that Section 4 of the Nova Scotia Automobile Tort Recovery Limitations Regulations was revoked. This section dealt with certain aspects of automobile tort claims and had also set the discount rate for any future losses arising out of an accident at 3.5%.
“It was determined that the rationale for the discount rate set in insurance regulation was no longer relevant and that it should be repealed,” reads the provincial bulletin used to publicize the repeal of this section.
However, it is still unclear when a new regulation setting a new discount rate will be passed. It is also unclear whether the earlier rate of 3.5% will be applicable to accidents occurring before Aug. 1.
The uncertainty has left clients wondering about what the future holds, say brokers in the province.
While questions still persist about accidents that occurred before Aug. 1, the process of calculating the discount rate for subsequent pain and suffering lawsuits is more clear-cut.
For such lawsuits, the discount rate will be calculated either by using Civil Procedure Code 70.06 – which sets the rate at 2.5% - or by using actuarial evidence applicable to the case in question.
