ICBC chair Joy MacPhail (Tom Fletcher/Black Press)

ICBC to cap pain and suffering payouts to stem car insurance losses

Limit on pain and suffering, increased care for major injuries

The Insurance Corporation of B.C. is placing a $5,500 limit on payouts for pain and suffering, while increasing the maximum payout for people killed or seriously injured in vehicle accidents.

To stem the losses from rising accident rates and an 80 per cent increase in injury claim costs in the past seven years, ICBC is also introducing a claim resolution tribunal to settle disputed claims without going to court.

The overall accident benefit maximum goes from $150,000 to $300,000 for serious injury claims, including nursing care and recovery, medical, dental, occupational and funeral costs.

ICBC has seen a steep increase in the costs for minor injury claims, now averaging about $30,000 each. A third of that cost is legal costs, both to ICBC for lawyers and expert reports, and to customers who pay lawyers to sue the corporation.

RELATED: ICBC in financial ‘dumpster fire’

The legal definition of a minor injury is being developed, Attorney General David Eby said Tuesday. It is expected to include strains, sprains, mild whiplash, aches and pains, cuts and bruises, with cases to be determined by medical professionals independent of ICBC.

The changes are to take effect April 1, 2019, and are expected to save the corporation about $1 billion a year when they take effect, Eby said. In the meantime, rates are up eight per cent this year for the average driver, combining basic and optional insurance provided by ICBC.

ICBC board chair Joy MacPhail said the increase to major injury payouts is overdue, since they haven’t changed since 1991.

“These changes make the injured customer our top priority, redirecting payments away from legal costs into significantly enhancing the care and treatments for anyone who is injured in a crash,” MacPhail said.

Jane Dyson, executive director of Disability Alliance B.C. said her organization has been advocating for increased support for seriously injured people for more than a decade.

“The doubling of the overall allowance for medical care and recovery is a significant improvement,” Dyson said.

BC legislatureICBC

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

Just Posted

A case of COVID has been detected within School District 33. (School District 33 photo)
UPDATE: Case of COVID confirmed at a Chilliwack school

Fraser Health has not informed parents but district sent letter to parents Friday

Record-low returns of salmon have been recorded on the Fraser River in recent years. (Fisheries and Oceans Canada)
Time for Indigenous-led salmon strategy on the Lower Fraser, says Alliance

‘Closures of First Nations, commercial and recreational salmon fishing’ have huge impact: LFFA

The City of Chilliwack says there’s too much spitting going on at the Sardis Sports Complex. (City of Chilliwack photo)
Too much spitting a problem at Chilliwack’s Sardis Sports Complex

The City of Chilliwack is asking the minor hockey community to ease up on expectorating

The number of new COVID-19 cases has risen sharply in Vancouver and the Fraser North region over the last week.
Chart: Tyler Olsen
CHARTS: Weekly COVID-19 case counts continue to rise in Fraser Valley

The number of new COVID-19 cases has risen sharply in Vancouver and the Fraser North region.

The Excelsior 4 are set to make their second court appearance in Abbotsford on Monday (Nov. 2). (Ben Lypka/Abbotsford News)
‘Excelsior 4’ making second Abbotsford court appearance on Monday

Animal rights activists expected to plead not guilty to charges, protest for Vancouver scheduled

Physical distancing signs are a common sight in B.C. stores and businesses. THE CANADIAN PRESS
272 more COVID-19 cases for B.C., outbreak at oil sands project

Three new health care outbreaks, three declared over

A Mercedes SUV is covered at a gas station in the Clayton area following a deadly shooting there on Sept. 28, 2019. (File photo)
This house at 414 Royal Ave. became notorious for its residents’ and visitors’ penchant for attracting police. It was also the site of a gruesome torture in August 2018. It was demolished in 2019. KTW
6-year sentence for Kamloops man who helped carve ‘rat’ into flesh of fellow gang member

Ricky Dennis was one of three men involved in the August 2018 attack

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

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

Among the pumpkin carvings created this year by Rick Chong of Abbotsford is this tribute to fallen officer Cont. Allan Young.
Abbotsford pumpkin carver’s creations include fallen police officer

Rick Chong carves and displays 30 pumpkins every year

An online fundraising campaign in support of the six-year-old boy, Edgar Colby, who was hit by a car on Range Road Oct. 25 has raised more than $62,000 in a day. (Submitted)
$62K raised in 1 day for boy in coma at BC Children’s after being hit by vehicle in Yukon

The boy’s aunt says the family is “very grateful” for the support they’ve received from the community

Health care employees take extensive precautions when working with people infected or suspected of having COVID-19. THE CANADIAN PRESS/Chris Young
WorkSafeBC disallows majority of COVID-19 job injury claims

Health care, social services employees filing the most claims

Vancouver Symphony Orchestra Maestro Otto Tausk. (Photo: vancouversymphony.ca)
50/50 lotto players buck up for Metro Vancouver musicians hit hard by COVID

‘Rapidly growing jackpot’ for VSO’s 50/50 draw as they go online with TheConcertHall.ca

Most Read