ICBC projects deficit of $1.3 billion as growth in injury claims and costs piles up. (Black Press files)

ICBC projects deficit of $1.3 billion as growth in injury claims and costs piles up. (Black Press files)

ICBC reform aims to slow rising car insurance costs

‘Pain and suffering’ payouts to be capped, major injury limit to double

The B.C. government is moving ahead with promised reforms to the Insurance Corporation of B.C., which has seen a huge increase in injury claim costs and a projected deficit of more than $1 billion a year.

Attorney General David Eby introduced the legislation Monday, to act on his promise in February to impose limits on the growing payouts from vehicle accident claims.

A second bill creates allows insurance disputes of under $50,000 to be dealt with by a civil resolution tribunal. The Attorney General’s ministry said in a statement the new structure would allow these disputes to be dealt with in as little as 90 days, compared to two to three years in B.C. Supreme Court.

RELATED: ICBC to cap pain and suffering awards

The cap of $5,500 for pain and suffering and other changes are to take effect April 1, 2019, and is expected to save ICBC up to $1 billion a year. The Crown corporation has seen a steep increase in costs for minor injury claims, with the average rising to $30,000 each. A third of that cost is legal fees, which ICBC has to pay for lawyers and expert reports even if claims are settled out of court.

ICBC has also seen a steep increase in the number of accident claims in recent years, and has tracked a 30 per cent increase in body shop costs as well. The corporation is running advertisements reminding people to check the alignment of their vehicle headrests to prevent whiplash-type injuries in a collision.

The rising costs have continued after a 6.4 per cent basic insurance rate increase was approved by the B.C. Utilities Commission in January. That translates to an average increase of $4.75 per month for basic personal insurance coverage, which took effect Nov. 1 on an interim basis.

The changes include a doubling of the maximum payout for serious injuries, from $150,000 to $300,000. It’s the first increase in 25 years in the amount to pay for nursing care, medical, dental, occupational and funeral costs.

“It is unacceptable, not just the British Columbians faced skyrocketing rates while ICBC lost hundreds of millions of dollars, but also that benefits for injured drivers, passengers, cyclists and pedestrians have been frozen in time for a quarter century,” Eby said.

“We are rebalancing where ICBC premium dollars go. We’re shifting the money out of administration, expert reports and court processes, and into drivers’ pockets through stable rates and better benefits.”


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC legislatureICBC

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

The Chilliwack Board of Education passed their amended budget for the current school year on Feb. 23, 2021. They will begin to focus on next year’s budget after the province announces its budget in mid-March. (Screenshot)
Chilliwack school board approves budget for current school year

With amended budget dealt with, next step will be to look at next year’s budget

Chilliwack Mayor Ken Popove serves hot dogs to students at Strathcona Elementary on Pink Shirt Day, Feb. 24, 2021. (Jessica Peters/ Chilliwack Progress)
Hot dog day draws out Chilliwack mayor, music and fun at Strathcona elementary

Fun lunch at Chilliwack school a way to build school community, and support Community Services

The last three wild northern spotted owls live near the Spuzzum Watershed outside of Hope. The province recently ordered a halt to logging for at least a year to give the owls a chance to survive.  (Photo/Jared Hobbs)
Logging halted in northern spotted owl habitat near Hope

Halt will last at least a year, gives time to formulate survival plan for Northern Spotted Owl

The Rocket Science S.T.E.M. camp will run virtually during spring break. (Submitted photo)
Abbotsford Airshow, Gearbots Educational Resources launch Rocket Science camp

Virtual format of camp open to students aged nine and up, will run during spring break

Bald eagles descended on the Harrison River near Sts’ailes during the 2019 Bald Eagle Festival. The Sts’ailes First Nation will be developing a heritage trail near the river with recently announced provincial grant funding. (Grace Kennedy/The Observer)
More than $2.7M in funding coming for projects in FVRD, Hope, Sts’ailes, Agassiz

Funding will go to support new trails, building upgrades in the Fraser Valley

Provincial health officer Dr. Bonnie Henry updates B.C.’s COVID-19 situation at the B.C. legislature. (B.C. government)
B.C. reports 10 additional deaths, 395 new COVID-19 cases

The majority of new coronavirus infections were in the Fraser Health region

B.C. Court of Appeal in Vancouver. (File photo: Tom Zytaruk)
Court makes public ‘abbreviated’ reasons for judgment in Surrey Six slaying appeals

Six men were murdered in suite 1505 of the Balmoral Tower in Whalley on Oct. 19, 2007

A 50-year-old man was stabbed in an altercation that started with a disagreement about physical distancing. (File photo)
Argument about physical distancing escalates to stabbing in Nanaimo

Victim, struck with coffee cup and then stabbed, suffers minor injuries; suspect arrested

NDP leader Jagmeet Singh holds a press conference on Parliament Hill in Ottawa on Wednesday, Feb. 24, 2021. THE CANADIAN PRESS/Sean Kilpatrick
NDP will not trigger election as long as pandemic continues: Singh

‘“We will vote to keep the government going’

Police stopped car riddled with bullets in Whalley Monday night. (Photo: CFSEU)
Police seize two pounds of pot, $25K from Surrey car riddled with bullet holes

This was in the neighbourhood of 104th Avenue and Whalley Boulevard on Monday night

Head of internal medicine at Chilliwack General Hospital Dr. Shari Sajjadi talks about the positive feedback hospital staff have received over this last year in the latest YouTube video about COVID-19 created in partnership with the Chilliwack Division of Family Practice and the Chilliwack Economic Recovery Network. (YouTube)
VIDEO: Dr. Shari Sajjadi says a simple ‘thank you’ helps keep up spirits of healthcare workers

‘We are so thankful for the positive feedback we are getting from our patients’

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

“Support your city” reads a piece of graffiti outside the Ministry of Finance office. (Jane Skrypnek/News Staff)
Slew of anti-bylaw graffiti ‘unacceptable’ says Victoria mayor, police

Downtown businesses, bylaw office and Ministry of Finance vandalized Wednesday morning

Most Read