As of August 1, 2015, section 4 of the Nova Scotia Automobile
Tort Recovery Limitations Regulations was repealed. This section
previously set the discount rate for future losses in automobile
tort claims at 3.5%.
The repeal was publicized in a bulletin that stated "it was
determined that the rationale for the discount rate set in
insurance regulation was no longer relevant and that it should be
repealed".
There is no indication at this time that a new regulation will
be passed setting a new discount rate.
It is unclear whether the discount rate of 3.5% will continue to
apply to accidents that occurred prior to the August 1, 2015 repeal
of the regulation.
Certainly, for accidents occurring after August 1, 2015,
discount rates will have to be determined using either Civil
Procedure Rule 70.06, which prescribes a discount rate of 2.5%, or
by using actuarial evidence in any given case.
