In the 2024 Newfoundland and Labrador Court of Appeal decision Hillyer v. Tilley, the court considered whether Nova Scotia’s minor injury cap applied to an action for damages for non-pecuniary loss commenced in Newfoundland and Labrador by plaintiffs who were residents of Newfoundland and Labrador injured in Nova Scotia in a motor vehicle accident.
The court concluded that Nova Scotia’s minor injury cap applied to limit the plaintiffs’ non-pecuniary loss damages. This is an important reminder that caps on minor injury damages are substantive law and can limit damages for non-pecuniary loss even when an action is litigated out of province.
For this article, our team reviewed the Newfoundland and Labrador Court of Appeal’s Hillyer v. Tilley decision, Nova Scotia’s Automobile Accident Minor Injury Regulations, and the Superintendent of Insurance’s 2026 indexed-cap bulletin.
The case arose from a bus collision near Antigonish, Nova Scotia, on March 13, 2005. At that time, Nova Scotia’s minor-injury cap was $2,500; the current indexed amount depends on the accident year.
Read More: Learn About Car Insurance in Nova Scotia
Why Nova Scotia’s Minor Injury Cap Applies in Newfoundland Cases
For 2026, the cap for minor injury claims under Nova Scotia’s Automobile Accident Minor Injury Regulations has been indexed to $10,862 by a bulletin from the Superintendent of Insurance. This amount applies to accidents that occur in Nova Scotia in 2026.
Monetary losses include provable income loss, treatment costs, vehicle repair and other property damage. Non-monetary losses include pain and suffering.
Nova Scotia law can limit the amount of money you can claim from another person if your injuries are considered “minor.” The cap does not apply to losses for things like vehicle repairs or treatment costs.
The cap does not mean you will automatically receive the indexed-cap amount. For collisions on or after April 28, 2010, each injury must be considered separately.
Certain types of injuries, such as sprains, strains and whiplash-associated disorders that meet specific criteria, will be considered minor injuries unless proven otherwise. The injured person must show that an injury is not minor.
Understanding Substantive vs. Procedural Law in Auto Insurance Claims
Canadian conflict-of-laws rules, also known as private international law, determine which province’s laws apply when an out-of-province motor vehicle accident occurs. Broadly, these rules indicate that:
- The law of the province where an accident occurs generally applies, subject to conflict-of-laws rules, to determine whether a person has a legal right to sue for damages.
- The law of the province where a lawsuit is commenced generally applies, subject to conflict-of-laws rules, to determine how to proceed with the lawsuit.
The minor injury cap is a substantive law. This means that although a person may reside in a province with no minor injury cap, they can be injured in an accident in a different province with a minor injury cap and be limited in the amount they can sue for non-pecuniary loss in an action against another driver.
Implications for Drivers Travelling Between Provinces
Hillyer shows why the accident location matters, but an interprovincial claim still requires a fact-specific conflict-of-laws analysis. Do not assume that every host-province rule applies in the same way to every benefit or head of damages.
Do Not Assume Extra Coverage Removes the Cap
Accident-benefit or disability coverage may help with other accident-related losses, but it does not remove Nova Scotia’s statutory tort cap.
What to Do After an Out-of-Province Collision
Use these steps to preserve evidence and protect both the insurance claim and any legal claim that may arise:
- Get medical attention and describe all symptoms. Keep treatment, travel and income-loss records.
- Report the collision to police when required and notify the insurer promptly under the policy.
- Preserve photographs, witness details, repair records and correspondence.
- Seek legal advice in time to protect applicable notice and limitation periods. The correct deadline depends on the claim and province.
Read More: Learn About Car Insurance in Newfoundland and Labrador