Attorney General David Eby and Premier John Horgan (B.C. government)

Attorney General David Eby and Premier John Horgan (B.C. government)

VIDEO: B.C. to reduce ICBC rates, further restrict people from suing

Premier John Horgan says benefits will increase starting 2021

Taking lawyers out of personal injury claims will allow the Insurance Corp. of B.C. to cut vehicle insurance rates by an average of 20 per cent next year, while increasing wage loss and other payments to injured people, Premier John Horgan says.

Horgan and Attorney General David Eby announced a new vehicle insurance system Thursday that they expect to have in place by May 2021. In the meantime, Eby said basic insurance rates will not increase after April 1, 2020, and the 2021 rate will be reduced by an average of $400 by further restricting lawsuits.

Legislation will be introduced this spring to cut ICBC rates by an average of 20 per cent, and increase maximum care and treatment benefits for people injured in a crash to $7.5 million, or more in some cases for catastrophic injuries that require long-term care. The current cap is about $300,000, with many areas of care determined through legal disputes.

B.C. Liberal leader Andrew Wilkinson said Thursday the new rules will force seriously injured people deal with the “state-run monopoly” for the rest of their lives.

“Why aren’t we being offered the Saskatchewan model where drivers can choose either no-fault or the current system of lump-sum payments, with no difference in premiums?” Wilkinson said. “People deserve a choce and they deserve it now.”

The B.C. Green Party endorsed the changes, which will require support beyond the B.C. NDP minority to pass the necessary legislation.

“Government and ICBC will need to earn the trust of British Columbians as they implement this new system,” said Saanich North and the Islands MLA Adam Olsen, the interim Green leader. “It is critical that people are able to smoothly access the support and compensation they need for their recovery.”

The improvements will be paid for by removing the majority of legal fees and other costs from courts, with disputes directed to a civil resolution tribunal. The new system is not “no fault,” government officials say, with exceptions that would still allow legal action.

People who commit criminal offences such as impaired or dangerous driving, or those who do faulty manufacture or repair of vehicles would still be liable to be sued for damages. Rates will also rise for drivers who cause accidents.

RELATED: ICBC caps ‘pain and suffering’ payouts from crashes

RELATED: Eby warns trial lawyers about challenging reforms

The legislation will create an “ICBC fairness officer,” and people can also appeal to the B.C. Ombudsperson if they dispute a decision from the civil resolution tribunal.

ICBC calculates that with the April 2019 move of minor cases to a civil resolution tribunal, and capping “pain and suffering” payments at $5,500, the corporation expects to save about $1 billion this year. But even with the cap, pain and suffering claims are still expected to total $940 million in 2022 without the changes to be implemented this year.

ICBC currently has 90,000 claims in the current court-based model, and the corporation expects it will take five years or more to settle those.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC legislatureICBC

Just Posted

File photo (Aaron Hemens/Capital News)
Overturned kayak in Mission Creek prompts police response

Kelowna RCMP is looking to speak with anyone who may know the individual associated with the kayak

A drug bust on Government Street in Duncan on Tuesday, March 30, led to a "substantial seizure" according to the North Cowichan/Duncan RCMP. (File photo)
Search continues for diver who went missing in Okanagan Lake

Search and rescue, RCMP underwater recovery team looking for diver missing since Saturday afternoon

Rutland Senior Secondary (Barry Gerding/Black Press)
UPDATE: List of Kelowna school COVID-19 exposures expands

School District 23 says two more schools have been exposed to the virus

A man and woman, both 33 and from Kelowna, were arrested on Postill Lake Forest Service Road in possession of two stolen vehicles Friday, May 14, 2021. (File photo)
Kelowna duo arrested with stolen vehicles after ‘brief’ bicycle getaway attempt

A man and a woman were arrested on a forest service road on numerous pending charges

The warm weather means time for a camping trip, or at least an excursion into nature. How much do you know about camps and camping-related facts? (John Arendt - Summerland Review)
QUIZ: Are you ready to go camping?

How many camp and camping-related questions can you answer?

Daily confirmed COVID-19 cases reported to B.C. public health, seven-day rolling average in white, to May 12, 2021. (B.C. Centre for Disease Control)
B.C. preparing ‘Restart 2.0’ from COVID-19 as June approaches

Daily infections fall below 500 Friday, down to 387 in hospital

Penticton city parks staff were busy this week using the beach grater to sift through sand, getting the shores ready for beach season. When it comes to beach clean up they are collecting run-off debris, pulling weeds and picking up litter. (Penticton photo)
Hottest day of the year, so far, in the South Okanagan

Penticton city park staff cleaned up the beaches getting ready for the season

KCR Migrant Support Worker, Javier, had an exciting day escorting his son Ian with him during ‘Take your Child to Work Day’!
KCR: Volunteering is being part of a whole

KCR Community Resources shares stories of its volunteers in a weekly column

Sicamous RCMP Sgt. Murray McNeil and Cpl. Wade Fisher present Cody Krabbendam of Ranchero with an award for bravery on July 22, 2020. (Contributed)
B.C. boy receives medal of bravery, scholarship for rescue of child at Shuswap beach

Last summer Cody Krabbendam jumped into the lake to save another boy from drowning

This is what the glowing boulders look like at night at 28 Huth Ave. (Submitted)
PHOTOS: Glowing boulders popping up in the Okanagan

Local landscaper Brandon Messier also brought the Lost statue to its new home

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Coldstream Fire Department is on-scene Sunday, May 16, battling a fire in a Matner Lane orchard just up the hill from the firehall on Aberdeen Road. (Jennifer Smith - Morning Star)
Okanagan fire crew tackles orchard blaze

Fire broke out just before 2 p.m. on Matner Lane, which is just up the hill from the Coldstream firehall on Aberdeen Road

Someone or something is vandalizing birdhouses built and erected along Salmon Arm’s Foreshore Trail, much to the chagrin of a Shuswap biologist who looks after the houses. All but one of 32 along the trail are occupied. (Facebook photo)
Ongoing birdhouse vandalism rocks Shuswap trail, groups

Eight more boxes were destroyed Saturday, May 15

Most Read