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.

Just Posted

Moose Hide campaign takes message to Canadian schools

Campaign launches new K-12 education platform

Lost wedding ring found on Valentine’s Day

Dan Milbrath’s ring is back where it belongs

Runners invited to get set for the 40th annual Goodlife Marathon

More than 9,000 runners expected to pack Victoria streets in October

Victoria installation for the blind causes problems for those with mobility issues

The truncated domes installed at Blanshard and Fort streets aren’t helpful for everyone

Fire destroys South Island Concrete building in Sooke

No injuries resulted from large structure fire

Trudeau’s principal secretary, Gerald Butts, resigns amid SNC-Lavalin furor

Butts categorically denies the accusation that he or anyone else in the PMO improperly pressured former attorney general Jody Wilson-Raybould

Poverty coalition has high hopes for B.C. poverty reduction strategy

Funding allocation expected to be released with 2019 budget

‘How did we get here?’: B.C. mom of transplant recipient worries about measles outbreaks

Addison, 7, cannot get a live vaccine because she has a heart transplant

Steelhead LNG stops work on Kwispaa LNG project near Bamfield

Huu-ay-aht First Nations ‘deeply disappointed; Steelhead says funding is the problem

NDP Leader Jagmeet Singh calls for public inquiry over SNC-Lavalin questions

Vancouver member of Parliament Jody Wilson-Raybould resigned from cabinet last week

Canadian airlines waiting for guidance from Ottawa over X gender option

Major U.S. airlines said they will change their process so passengers can identify themselves along non-binary lines

‘Violent’ B.C. man wanted on Canada-wide warrant

Prince George man with ties to Vernon sought by police

Homicide police investigate assault turned deadly in Surrey

60-year-old man died at hospital after assault

Deported B.C. man who came to Canada as a baby granted chance at return

Len Van Heest was deported to the Netherlands in 2017

Most Read