Brokers in Nova Scotia appear are cramming for a big test, learning everything they can about diagnostic treatment protocols and no-fault insurance before the second phase of the province’s auto insurance reforms are rolled out throughout the province beginning on April 1, 2013.
Several brokers have told Insurance Business that auto reform is the biggest challenges facing brokers in the province right now. So far, anyway, brokers claim to be up to the task.
“None of it is terribly onerous, really,” said Robert Knapp of Basin Insurance Brokers. “In terms of the advice we give to our customers, we have to educate ourselves about the changes and be in a place to inform our customers about how those changes affect them as a claimant.
“But apart from that, it’s been business as usual. The penny going away has caused more disruption, really.”
Phase I of Nova Scotia’s auto insurance reforms, introduced April 1, 2012, brought in enhanced mandatory benefits for all drivers, including medical, rehabilitation, funeral, death and loss-of-income benefits. It also prohibited automobile insurers from increasing premiums for collisions when no claim is made, and the driver covers the cost of damages themselves.
Phase II, however, is more technical.(continued)#pb#
“Two of the more complicated pieces of the reforms are the diagnostic treatment protocols, as well as DCPD [Direct Compensation/Property Damage],” said Amanda Dean, IBC’s director of external and government relations for the Atlantic region. “It would be new to Nova Scotia brokers, because they haven’t existed in Nova Scotia to date.”
DCPD, loosely described as a type of no-fault insurance, describes a system in which a person injured in an auto accident makes a claim to his or her own insurer for benefits, rather than make a tort claim against the insurer of another driver involved in the accident. The new treatment protocol describes minor injuries that would fall under the province’s cap of $7,500 for pain and suffering awards.
The Insurance Brokers Association of Nova Scotia (IBANS) has partnered with the IBC to educate brokers about the treatment protocols and DCPD, so they will better be able to advise their clients. A half-day seminar for brokers on March 7 will give an overview of the DCPD legislation. A seminar on the treatment protocols will happen on March 20.
“We’re obviously well aware of the changes and we are working with industry and the superintendent’s office to ensure that we provide education, and that will be ongoing,” said IBANS CEO Karen Slaunwhite.
Nova Scotia a bit of an edge when it comes to explaining to consumers how the new injury protocols work, said Ken Myers of Gateway Insurance Brokers Ltd. The proposed new minor injury treatment protocols are modeled on minor injury definitions already seen in Alberta, as well as in neighbouring New Brunswick.
“A lot of brokers in Nova Scotia have experience in New Brunswick as well, because they might be licensed in New Brunswick,” Myers said. “The DCPD piece of it is already there.
“I think it will be a learning curve for clients, but at the end of the day, it really won’t impact the client in terms of claims. In fact, it should be an improvement in claims service, I think. That’s certainly the hope.
“We’re making sure that everyone in the office is boned up on exactly what it is and is able to give a clear and reasonably concise explanation so that people will understand it.”
