Image Credit: CFJC Today

By Jon Azpiri / Global News

ICBC

B.C. government axing lawyer, legal costs to create no-fault style insurance at ICBC

Feb 6, 2020 | 11:06 AM

VANCOUVER — The B.C. government is dramatically overhauling ICBC in an effort to save drivers money and slash the amount lawyers receive.

Premier John Horgan and Attorney General David Eby outlined changes on Thursday they estimate will save an average of $400 per driver. The province also announced there will be no increase to the basic insurance rate next year.

In order to pass the savings on to customers, the public insurer will provide care for “those most seriously injured” and get rid of the current need to hire a lawyer to receive an injury settlement.

“It’s time for change at ICBC,” Horgan said.

“The old government ignored ICBC’s problems, allowing it to become a system that made lawyers rich, while drivers paid too much for insurance. We’re going to transform ICBC to lower rates for B.C. drivers.”

Sound Off

SOUND OFF: Culturally appropriate food goes beyond the ingredients on a plate

20h ago

Two and Out

PETERS: Whether building up or tearing down, Kamloops is what you make it

Dec 13, 2024

Sound Off

SOUND OFF: How to reduce food waste in Kamloops during the festive season

Dec 13, 2024

The changes are similar to care-based, or “no-fault,” insurance systems in Manitoba and Saskatchewan. Saskatchewan has gone five years in a row with no premium rate increases to drivers.

If the legislation is passed the new system will come into place May 1, 2021.

In 2020, ICBC’s average premium for basic and optional insurance is $1,900. The government is projecting these changes will drop the average to $1,500 a year.

The changes will limit the types of collisions where the ICBC customer can go to court.

An injured driver will be able to sue if they are involved in a crash with someone charged with a criminal offence and if either a manufacturer or repair facility is found to have done faulty work.

Customers will be able to use the beefed-up Civil Resolution Tribunal, and can challenge decisions if there are concerns about the outcome.

The major change, aside from getting rid of the ability to sue in most cases, is to drastically overhaul accident benefits and care coverage.

Under the new system, ICBC customers will have up to $7.5 million in medical and rehabilitation benefits compared to $300,000 under the current system.

The automatic benefits for ICBC customers involved in a crash and working with their doctor will include treatments like massage therapy, chiropractic care and physiotherapy. Customers will also have access to prescriptions, dental care, counselling and personal-care services.

“You shouldn’t need a lawyer to access the benefits you’ve paid for,” Eby said.

“By removing expensive lawyers and legal fees from the system, we are making ICBC work for British Columbians again with more affordable insurance rates and much better coverage.”

There are currently still 90,000 claims that will be dealt under the old, litigated system. It will take four to seven years to deal with backed-up claims.

According to the province, ICBC currently spends $960 million in legal costs, $940 million in pain and suffering payouts, and $1.3 billion in injury claims. Those costs will mostly be cut out by the new system, which the province says will deliver improved benefits for customers.

ICBC has lost more than $1 billion in each of the last two years. A big chunk of those losses have been wiped out by the changes made last year to cap of $5,500 on soft-tissue injury payouts.

British Columbia was the last province in the country to apply a cap on minor injury payouts, like soft-tissue injuries. Part of the challenge for ICBC is that the average claim for minor injuries has gone up from $8,220 in 2012 to $30,038 in 2016.