Image Credit: CFJC Today

By Jill Sperling

ICBC Changes

President and CEO of ICBC promises savings with Enhanced Care system

Mar 12, 2020 | 4:37 PM

KAMLOOPS — Auto insurance is going to look a lot different in B.C. come next spring.

The Insurance Corporation of British Columbia is moving to a new no-fault system next May, largely removing lawyers from the process of receiving compensation after a collision.

ICBC President and CEO Nicolas Jimenez told CFJC Today the new Enhanced Care System will benefit those who have been injured in a crash by increasing the available compensation.

He also addressed criticism over the wage loss benefit cap of $1,200 per week.

“So, you do the math, that represents people earning $93,000, that’s 90 per cent of wage earners,” Jimenez said. “If you earn more than that, we’re going to sell a product that you can buy to cover the difference between that $93,000 and whatever you earn. So, our view is that the wage loss protections are substantially improved in the new system than they exist today and those will apply to everybody.”

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Through the Enhanced Care System, premiums are expected to go down an average of 20 per cent, or $400 per person.

Jimenez says the no-fault system removes the need to purchase additional protections against getting sued.

“What we’ve had historically is a run up in the cost of settling claims, particularly injury claims,” he said. “That’s put a lot of pressure on premiums, so we’ve had to match premiums with costs. So, we’re hoping to see a significant reduction by about $1.5 billion in terms of the cost structure, which is huge.”

The Enhanced Care System would increase care and recovery benefits after a crash to at least $7.5 million.

If someone is unhappy with what they receive, ICBC says there are internal and external processes to resolve a dispute with the corporation, such as the Civil Resolution Tribunal.

“If you feel like you still need more, there are other mechanisms,” Jimenez said. “The government’s announced a new Fairness Office, so that’s going to improve on the fairness commissioner that we have today. You have the ombudsperson, again that’s a process that exists today, it sits outside of ICBC and it’s a place where you can go if you feel like you haven’t been dealt with fairly.”