Former NDP cabinet minister Joy MacPhail was appointed to chair the ICBC board in 2017, as the corporation struggles with a deteriorating financial situation. (Black Press files)

ICBC expecting $1.18 billion annual loss as new injury caps take effect

Injury lawyers ramping up opposition to minor injury tribunal

The Insurance Corp. of B.C. continues to struggle with increasing accident and injury claims as it prepares to implement new limits on pain and suffering claims on April 1.

ICBC posted its latest results Thursday, showing an $860 million net loss for the first nine months of the fiscal year that ends March 31. Net claims incurred during that period total nearly $5 billion, an increase of about $600 million from the same period a year earlier. The current projected net loss for the year is $1.18 billion.

ICBC’s new rules for pain and suffering, and an out-of-court dispute settlement system for minor injury claims take effect April 1. ICBC is also facing a court challenge from the Trial Lawyers’ Association of B.C., arguing the changes are an attack on the independence of the courts to settle disputes.

The lawyers’ group has also applied to be intervenors at the B.C. Utilities Commission, which is hearing arguments before setting the next rate increase for ICBC’s monopoly basic insurance.

Reports of “lowball” offers from ICBC adjusters were refuted by the Attorney General’s ministry Wednesday, with the release of an internal case review.

Attorney General David Eby called the losses “unacceptable” and focused on personal injury cases.

“A key reason for ICBC’s worsening financial crisis is the escalating costs of settling personal injury claims, which have increased 43 per cent in the last five years,” Eby said in a statement Thursday. “This trend is being exacerbated by the current gaps in the system which allow, for example, the use of almost unlimited experts who prepare costly reports in litigation that lasts for years, all paid for by drivers. Over the past year, the increasing use of expert reports has contributed to inflating ICBC’s settlement costs by 20 per cent.”

RELATED: ICBC lowball injury offers aren’t driving up costs, ministry says

RELATED: ICBC overhaul includes $50 fee for lending your car to relative

“ICBC is not responsible in any observable, systemic way for making inappropriate offers or inappropriately pressing cases and this generating legal costs,” says a report compiled by ministry lawyers.

“Instead, the claims files reveal beyond dispute that the longer the time taken to resolve a claim, the higher the cost.”

The review was conducted last summer using aggregate data from claim files, plus 100 randomly selected claims that were settled between 2013 and 2017. They included major or catastrophic industry claims and minor injury claims, some where claimants hired lawyers and some where lawsuits were filed.

Soaring accident rates and an 80 per cent increase in claims costs over seven years have plagued ICBC, prompting Attorney General David Eby to introduce changes that include a $5,500 limit on payouts for pain and suffering.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

Just Posted

Judge orders credit union’s bank records for Kelowna social worker facing theft allegations

The man is accused of negligence, breach of contract, fraud and a conspiracy with Interior Savings

Design submitted for new restaurant at location of former Kelowna hot-spot Rose’s Pub

Cactus Restaurants purchased the property earlier this year

Cancer cure breakthrough needs more research

Dr. Connie Eaves, a leading biotech research scientist in Canada, was keynote speaker at cancer care forum held Friday in Kelowna

Kelowna man sentenced to 20 months for having sex with minor

The incidents occurred over a four-month period between February and May of 2018

Well-known Kelowna developer, Al Stober, dies

Al Stober, whose Landmark Centre development spawned new town centre in the city, passes away at 88.

Kelowna business sponsors BC SPCA gala

Orthoquest Pedorthics and Rehabilitation returns as one of the gala sponsors for 2019

Summerland holds multiple events to launch festive season

Festival of Lights, Light Up the Vines and Sip ’n’ Shop will be held in late November and December

PET OF THE WEEK: Moose still needs a home

Critteraid cat wants a nice, quiet environment

Jack’s Devils beat Quinn’s Canucks 1-0 in NHL brother battle

New Jersey youngster scores first career goal against Vancouver

Penticton Vees to host 2021 Centennial Cup

It’s the first time Penticton has hosted the tournament which decides the country’s Junior A champions

VIDEO: Meet your Kelowna-Lake Country candidates

All seven Kelowna-Lake Country candidates answer questions about themselves and their policy

VIDEO: Meet your Central Okanagan-Similkameen-Nicola candidates

Central Okanagan-Similkameen-Nicola candidates answer questions about themselves and their policy

Two charged after owner’s wild ride through Kamloops in his stolen truck

Crystal Rae Dorrington, 37, and Derrick Ronald Pearson, 32, facing multiple charges

Leaders pour it on with rallies, boosts for candidates as campaign reaches peak

The federal election campaign has reached a crescendo

Most Read