Province issues insurance award changes after catastrophic injury scandal

A province has approved of new policies that update insurance settlement processing after a highly publicized cat injury case exposed flaws in the system

Motor & Fleet

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The Nova Scotia government has announced that it is implementing new policies intended to reform the way it handles insurance settlements for recipients who require extensive care.
 
"Recent cases have taught us that clients and their families want the rules to be clear, fair, and they want to be heard," Joanne Bernard, community services minister, said in a statement. "I don't want any more families to go through uncertainty and additional stress."
 
The most publicized of these recent cases involves Joellan Huntley, a young woman who suffered a catastrophic brain injury when she was 15 years old. Huntley suffered severe brain damage after a driver swerve to avoid colliding with a dog in the road, according to CBC News.
 
The insurance companies for the driver and the dog owner settled with Huntley’s parents for $1.5 million, which the government attempted to poach through a clawback. This caused an enormous backlash, as Huntley’s parents relied on that money for her rehabilitation and care.
 
“I’m just looking for the ability to look after Jo, nothing more,” Byron Huntley told the Chronicle Herald.
 
A lawyer for the family contested the clawback, arguing that it constitutes an over-recovery since Nova Scotians pay levies when they purchase auto insurance.
 
In addition, in a high-profile Supreme Court case, Justice James Chipman questioned the province’s legal team about its motives, asking why auto accident victims will even bother to seek insurance awards if they end up being reclaimed by the government.
 
“It just seems rather perverse, doesn’t it?,” he said.
 
While details of that outcome were not made public, it was the catalyst that caused the province’s Department of Community Services to update their policies.  These include:
 
  • A central unit within the Department of Health and Wellness will employ the same policy approach and administration for that department and the Department of Community Services
  • Adjustments will be made to the intake process to identify insurance settlements earlier, prompting staff to make contact with the client and their caretakers sooner
  • Allowing for more flexible settlement divides, taking into account the caretakers’ plan for supporting the client
 
All changes take effect immediately.

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