B.C. Attorney General David Eby announces changes to B.C.’s public insurance system. (B.C. government)

B.C. moves ahead on removing lawyers from ICBC cases

David Eby vows change will increase injury benefits

The B.C. government has introduced changes to Insurance Corp. of B.C. laws that Attorney General David Eby has predicted will lead to a “street fight” with personal injury lawyers over the enormous legal fees they generate suing the corporation.

Eby told the legislature Wednesday his latest amendments will deliver a promised 24-fold increase in the maximum payout for serious disabling injuries, from about $300,000 to $7.5 million, and in some cases even more to cover costs of life-long nursing care.

The new system takes effect in May 2021, and Eby says it will do more than improve care for seriously injured people. He vowed that it will increase wage loss payments by up to 60 per cent and finance a 20 per cent reduction in premiums paid by B.C. drivers next year. Basic ICBC insurance rates are to be frozen after April 1 this year.

The changes are to be financed by continuing the NDP government’s move to divert disputes from court to a new civil resolution tribunal, which already is dealing with smaller disputes. Getting all cases out of court is expected to save ICBC an estimated $1.5 billion in legal fees, courtroom experts and related costs once the changes are in effect.

RELATED: Horgan rejects ‘no fault’ description of new ICBC rules

RELATED: ICBC shifting to Alberta model, private insurers say

The Trial Lawyers Association of B.C. has questioned the independence of the tribunal approach, since its members are appointed by the provincial government and make decisions that directly impact ICBC’s bottom line. Soaring injury claims and legal costs have contributed to a $2.5 billion net loss in ICBC operations over the past two years, forcing the government to transfer money from its general budget to keep the corporation afloat.

The Insurance Bureau of Canada, representing private insurance companies, noted that ICBC’s proposed rate reduction will cost it $713 million in sales revenue. ICBC’s own books show its capital reserves are “significantly depleted” and well below its management and regulatory targets after the years of substantial payouts and losses, IBC representative Aaron Sutherland said.


@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

Lions extend organ donation campaign

Organ donation something to consider

108 Mile Heritage Market open for business

Vendors and clients are welcome to attend and visit the site

100 Mile House Council adopts COVID-19 Re-opening Policy for next 12 to 16 months

An increased focus on sanitization and cleanliness is the main focus of these new policies

Hospice campaign going better than expected

‘We’ve been quite surprised with how many people have wanted to get involved’

100 per cent of Cariboo businesses have had to reduce employee hours or lay employees off, study finds

This survey was conducted by the BC Chamber of Commerce called the COVID-19 Impact Pulse Check #3

11 new COVID-19 cases in B.C. as top doc urges caution amid ‘encouraging’ low rates

Dr. Bonnie Henry also announced that two care home outbreaks would be declared over

Surrey mayor’s party under fire for ‘sickening’ tweet accusing northern B.C. RCMP of murder

Mayor Doug McCallum says tweet, Facebook post ‘sent out by unauthorized person’

Father’s Day Walk Run for prostate cancer will be virtual event this year throughout B.C.

The annual fundraiser for Prostate Cancer Foundation BC has brought in $2.5 million since 1999

Dr. Bonnie Henry announces official ban on overnight kids’ camps this summer

New ban comes after talking with other provincial health officials across the country, Henry says

Senior man in hospital after unprovoked wolf attack near Prince Rupert

Conservation officers are on site looking for the wolf

VIDEO: NASA astronauts blast off into space on SpaceX rocket

Marks NASA’s first human spaceflight launched from U.S. soil in nearly a decade

‘I knew what he wanted’: Kootenay man spends hours in tree as black bear patrols below

Francis Levasseur is no stranger to the outdoors, but a recent run-in with a bear caused quite a scare

PHOTOS: U.S. cities brace for increasing unrest over police killing of George Floyd

Minnesota Gov. Tim Walz has fully mobilized the state’s National Guard

$200,000 Maybach impounded after ‘L’ driver caught excessively speeding in Vancouver

Meanwhile, the supervisor sat in the passenger seat, police said

Most Read