Opposition parties say the Nova Scotia government's plan to rein in soaring automobile insurance rates is a pre-election ploy that falls short on details.

The Conservatives said Wednesday that the plan will lead to a 20 per cent reduction in costs. The proposal places a cap on compensation for minor injuries.

The province will also create a Nova Scotia Insurance Board to oversee all insurance issues. The board will have the power to review rates to protect consumers against future increases.

Major election issue

Insurance rates are likely to be a major issue in the next election campaign in Nova Scotia, which could come as early as July.

The ruling Conservative party has rented a campaign office in downtown Halifax, prompting speculation that Premier John Hamm may call the election by the end of this week.

Labour Minister Ron Russell says there's no connection between the plan for lower insurance rates and a pending election.

He says the government is committed to lowering rates by 20 per cent. Those savings are based on taking away the right for drivers to negotiate or sue for unlimited cash settlements for pain and suffering from minor injuries.

Opposition members call the math suspect, saying Russell failed to provide details.

"The minister says he's going to produce a 20 per cent reduction but he might as well be wearing a wizard's cape and waving a magic wand," says NDP MLA Graham Steel.

Liberal MLA Michel Samson says the Tories are trying to one-up his party, which promised to cut rates by 15 per cent.

"Any Nova Scotian who goes to bed tonight thinking their rates will be reduced any time in the near future is sadly mistaken," said Samson.

Insurance rates have increased by as much as 65 per cent over the past 18 months in Nova Scotia. Insurance companies say they have increased premiums because of large court settlements for minor injuries.