Newfoundland and Labrador Car Accident Claims: No Minor Injury Cap, a Flat Deductible Instead

Newfoundland and Labrador does not use a minor injury cap like the other Atlantic provinces. Instead, the Automobile Insurance Act applies a flat, non-indexed $5,000 deductible to non-pecuniary damages in every bodily injury claim arising from an automobile accident, regardless of how serious the injury is.

Information last verified on 2026-09-24. This article has not yet been reviewed by a licensed lawyer.

This article covers Newfoundland and Labrador's Automobile Insurance Act, R.S.N.L. 1990, c. A-22, its 2019 regulations, and the Highway Traffic Act, R.S.N.L. 1990, c. H-3. For how other Atlantic provinces structure minor injury caps differently, see the Canada car accident claims hub.

No Minor Injury Cap: A Deductible Instead

Nova Scotia, New Brunswick and Prince Edward Island each cap the dollar amount recoverable for a narrowly defined "minor" injury, while leaving more serious injuries uncapped. Newfoundland and Labrador does not use that mechanism at all. Automobile Insurance Act s.39.1 states:

"In an action in the province for loss or damage from bodily injury or death arising directly or indirectly from the use or operation of an automobile, the damages to which a plaintiff is entitled for non-pecuniary loss or damage shall be reduced by the amount the Lieutenant-Governor in Council may set by regulation." (Automobile Insurance Act, R.S.N.L. 1990, c. A-22, s.39.1)

The regulation made under that section applies the reduction to every cause of action for non-pecuniary loss or damage, with no minor-injury classification test, no sprain or strain definition and no serious-impairment carve-out. That makes it a universal deductible subtracted from an otherwise uncapped award, not a ceiling placed on a defined category of injury. A seriously injured claimant in Newfoundland and Labrador can pursue the full non-pecuniary award a court would otherwise grant, less the deductible, while a comparably injured claimant in Nova Scotia faces no cap at all because their injury falls outside that province's narrow minor-injury definition. Do not describe Newfoundland and Labrador's figure as a "minor injury cap" alongside the other Atlantic provinces' caps; the mechanisms work differently.

The Deductible Amount

Automobile Insurance Regulations, 2019, N.L.R. 56/19, sets the amount:

"the amount by which the damages to which a plaintiff is entitled in relation to each cause of action for non-pecuniary loss or damage shall be reduced is (a) $2,500 in relation to loss or damage sustained on or after August 1, 2004 and before January 1, 2020; and (b) $5,000 in relation to loss or damage sustained on or after January 1, 2020." (N.L.R. 56/19)

The current figure is $5,000 for claims arising on or after January 1, 2020. No mechanism was found in the regulation for annual indexation to inflation, which sets Newfoundland and Labrador apart from Nova Scotia, New Brunswick and PEI, all of which republish their caps each year against their own provincial CPI. The $5,000 figure changes only if the Lieutenant-Governor in Council amends the regulation by order, not on a calendar schedule.

The same regulation requires insurers to disclose two further reductions to a claimant. A claimant who was not wearing a seat belt at the time of the accident, where required by law to wear one, faces a 25 percent reduction of damages, unless the claimant proves the injuries would have been the same had they been belted. Lost-income claims are also reduced by the employment insurance premiums, Canada Pension Plan contributions and income tax that would otherwise have been payable on that income.

Section B Accident Benefits

Automobile Insurance Act s.2(1)(a) defines accident benefits by reference to the standard policy form:

"'accident benefits' means Section B Accident Benefits as set out in S.P.F. No. 1 Standard Automobile Policy." (Automobile Insurance Act, s.2(1)(a))

These benefits are mandatory. The specific dollar sub-limits live in the Standard Automobile Policy form itself, which was not opened for this article, so no specific benefit amount is stated here.

Driving Without Insurance

Highway Traffic Act s.75(1) requires every vehicle on a Newfoundland and Labrador highway to be insured:

"A person shall not operate, or, being the owner, allow another person to operate, a motor vehicle on a highway unless there is in force in respect of the motor vehicle a policy of insurance." (Highway Traffic Act, R.S.N.L. 1990, c. H-3, s.75(1))

Section 75(5) makes it an offence to register an uninsured vehicle, to operate or permit the operation of an uninsured vehicle, or to fail to produce proof of insurance when a traffic officer asks for it. Under s.75(3), producing a policy that was in force at the time at a police station within 48 hours of the request counts as sufficient proof.

The penalty structure escalates with repeat convictions. Section 75(5.1)(a) makes a person with a second conviction for driving uninsured within 2 years of the first liable to the Schedule fine, up to 30 days in jail, or both, and s.75(5.1)(b) makes a third or later conviction within 5 years liable to the Schedule fine, 31 days to 6 months in jail, or both. Section 75(5.2) lets a judge order jail sentences under these and related provisions to be served consecutively.

The Highway Traffic Act Schedule sets the fines. Its columns give a maximum and a minimum fine, and its rows for s.75 read:

The consequences go further than a fine alone. Section 75(6.1) requires a court that convicts a person under paragraph (5)(a) or (b) to report the conviction to the Registrar, who must then order a 90 day suspension of the driver's licence of the owner of the vehicle and a 90 day seizure and impoundment of the vehicle. That combination is a mandatory consequence of a conviction under those paragraphs, not a discretionary sentencing option. Under s.75(6.2), if the person convicted is not the owner and was driving without the owner's consent, the Registrar suspends that person's licence instead of the owner's and does not impound the vehicle involved, though a vehicle the convicted person owns is impounded for 90 days. Section 75(6) separately requires the vehicle's identification plates and motor vehicle licence to be returned to the Registrar after a s.75(5) conviction.

In short, a first conviction for driving uninsured carries a fine of $2,000 to $4,000 plus the mandatory 90 day licence suspension and 90 day impoundment described above.

Limitation Period

The Limitations Act, S.N.L. 1995, c. L-16.1, s.5, sets a standard 2-year limitation period:

"Following the expiration of 2 years after the date on which the right to do so arose, a person shall not bring an action (a) for damages in respect of injury to a person or property, including economic loss arising from the injury whether based on contract, tort or statutory duty..." (Limitations Act, S.N.L. 1995, c. L-16.1, s.5)

For a personal injury or property damage action, s.14(1) postpones the start of that period until the person knows, or considering all the circumstances ought to know, that they have a cause of action, and s.14(3) sets an outer limit of 10 years from the act or omission. This matches the 2-year period used in most other common-law provinces covered on this site.

A claim against your own insurer can be subject to a shorter deadline. Automobile Insurance Act s.41 provides that an action against an insurer for uninsured motorist coverage, medical expense coverage or accident benefits under sections 33, 34 or 35 "shall be started within the limitation period specified in the contract, but in no event shall the limitation period be less than 1 year after the happening of the accident." Check your policy for its deadline rather than assuming the 2-year tort period applies.

Disclaimer: This article provides general information about Newfoundland and Labrador's Automobile Insurance Act, R.S.N.L. 1990, c. A-22, its 2019 regulations, and the Highway Traffic Act, R.S.N.L. 1990, c. H-3, current as of September 2026. It is not legal advice. It does not state Section B benefit sub-limits, which were not confirmed against a primary source for this article. Consult a lawyer licensed in Newfoundland and Labrador for advice on your specific situation.

Frequently Asked Questions

Does Newfoundland and Labrador have a minor injury cap?

No. Unlike Nova Scotia, New Brunswick and PEI, Newfoundland and Labrador does not cap damages for a narrowly defined minor injury category. Instead, Automobile Insurance Act s.39.1 applies a flat non-pecuniary deductible to every bodily injury claim regardless of severity, currently $5,000 for loss sustained on or after January 1, 2020.

How does the $5,000 deductible work?

It is subtracted from the non-pecuniary damages a court would otherwise award, for every cause of action for non-pecuniary loss or damage, whether the injury is minor or severe. It is not a ceiling on the total award, unlike the other Atlantic provinces' minor injury caps.

Does the deductible increase every year?

No indexation mechanism was found for the $5,000 figure. It changes only if the Lieutenant-Governor in Council amends Automobile Insurance Regulations, 2019, N.L.R. 56/19, by order, unlike Nova Scotia, New Brunswick and PEI's caps, which are republished annually against their own provincial CPI.

What happens if I drive without insurance in Newfoundland and Labrador?

It is an offence under Highway Traffic Act s.75(5)(b). The Schedule sets a fine of $2,000 to $4,000 for a first offence and $3,000 to $5,000 for a second offence, and a second conviction within 2 years of the first can also bring up to 30 days in jail. A conviction also triggers a mandatory 90 day suspension of the vehicle owner's driver's licence and a 90 day vehicle impoundment under s.75(6.1).

How long do I have to sue after a car accident in Newfoundland and Labrador?

Two years from the date the right to sue arose, under the Limitations Act, S.N.L. 1995, c. L-16.1, s.5, and for an injury claim s.14 delays the start until you know or ought to know you have a cause of action. A claim against your own insurer for uninsured motorist, medical expense or accident benefits coverage may have a shorter period set in the policy, but not less than 1 year after the accident, under Automobile Insurance Act s.41.