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

Comments are closed

Just Posted

Yard by yard, Trail program gives families clean spaces to play

Trail Area Health and Environmental program offers no-cost option to remediate soils

QUIZ: Put your knowledge of Canada to the test

How much do you know about our country?

Columbia Basin Trust maps out temporary plan

CBT to engage communities and businesses through online platform

ATCO Wood donates to COVID-19 relief

ATCO donation goes to Greatest Need Fund which enhances patient safety during COVID-19

Mills oppose Celgar’s ask for discounted logs destined for chipper

Smaller mills in the southern Interior are speaking out against a proposal… Continue reading

‘This year is unlike any other’: Trudeau delivers Canada day address

Sophie Gregoire Trudeau and the Prime Minister release video celebrating the national holiday

Tsilhqot’in Nation demands meeting with feds on declining Fraser River chinook stocks

The Nation wants to partner with DFO to rebuild and recover the stocks

PHOTOS: Dual rallies take over Legislature lawn on Canada Day

Resist Canada 153 highlighted colonization and genocide, Unify the People called COVID a hoax

Gov. General honours Canadians for bravery, volunteer service

Five categories of winners presented on Canada Day

COVID-19: Should non-medical masks be mandatory in Canada?

New poll shows Canadians are divided on the rules around mandatory masks

‘A little bit scary for everybody’: Air passengers wary as new rules take effect

Masks or face coverings have been mandatory on flights since April 20

VIDEO: Prince William and Kate chat with B.C. hospital staff about COVID-19

Seven-minute video posted to Youtube on Canada Day

River centre says heavy rains could bring flooding to central, northeastern B.C.

Water levels are already unusually high and river banks can be extremely unstable

Most Read