Associate Chief Justice Neil Wittman of the Court of Queen’s Bench has struck down a part of Alberta’s insurance law that limited soft tissue injury claims to $4,000. The law was introduced in 2004 to help bring down the cost of insurance premiums by reducing the maximum amount paid out to those making injury claims from motor vehicle collisions.

“In my view, the (regulation) sacrifices the dignity of minor injury victims at the altar of reducing insurance premiums,” Wittman wrote in his 84-page, precedent-setting judgement.

“Specifically, the message is that their pain is not as worthy of conventional … damages because of the nature of their injuries, despite that their injuries may be more painful and enduring than other types of injuries.”

The Insurance Bureau of Canada warns that insurance premiums may increase for most people because of higher claim costs to the insurance companies. IBC spokesman Jim Rivait said Friday premiums in Alberta have dropped about 18 per cent since the cap came in place in October 2004, and those savings could evaporate and lead to uncertainty if the ruling stands.

Many people that I have talked to did not get see any relief on their insurance premiums when the law was introduced but I am willing to bet the farm that the insurance companies will use this as an excuse to raise premiums for everyone.

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