ICBC’s costs for injury settlements and lawsuits are a major part of its deficit. (Black Press files)

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

B.C. auto insurance monopoly struggling with rising legal, settlement costs

A review of Insurance Corp. of B.C.’s rising injury claim cases finds no evidence for a common complaint that the provincial monopoly makes low offers, the Attorney General’s ministry said Wednesday.

“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. That cap takes effect April 1.

RELATED: ICBC to cap pain and suffering payouts to stem losses

RELATED: ICBC moves to tighten safe driver discount rules

Minor injury claim costs have increased steeply, averaging about $30,000 each by last year. A third of that is legal costs, both to ICBC for lawyers and expert reports, and to customers who hire lawyers to sue the corporation.

The settlement cap and a new claim resolution system to keep cases out of court are expected to cut as much as $1 billion from ICBC’s costs. Another change that ICBC board chair Joy MacPhail called long overdue is increasing the maximum benefit for serious injury claims from $150,000 to $300,000.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

Just Posted

Fuller Lake Beach remains closed

High bacteria count prevents people from being in the water during warm summer days

Wildlife photographer Boomer Jerritt will host Ladysmith lecture

Fresh off a trip to Churchill, Manitoba, Jerritt will speak on how climate change affects the arctic

Get ready for the 16th annual Ladysmith Show ‘n’ Shine

The show will feature cars from the past, as well as modern day marvels

Excavators help cute kid who copied their dig with his toys stay “safe at work”

Carson Carnegie wakes up at 7:00 am every morning to watch construction work on his street

Ladysmith charitable foundation targeting $60K for students in need

Nanaimo-Ladysmith Schools Foundation’s Stock the Lockers campaign goes until Sept. 3

QUIZ: How much do you remember about Woodstock?

Weekend music festival in Bethel, New York, was held 50 years ago

Canada ‘disappointed’ terror suspect’s British citizenship revoked

Jack Letts, who was dubbed “Jihadi Jack” by the U.K. media, has been detained in a Kurdish prison for about two years

Chrystia Freeland condemns violence in Hong Kong, backs right to peaceful assembly

There have been months of protests in the semi-autonomous region

B.C. VIEWS: Log exports and my other errors so far in 2019

Plastic bags, legislature overspending turn out differently

‘It’s just the freedom:’ Paralyzed Broncos player pursuing life on the water

The former Humboldt Broncos goaltender, who started in the net when he was nine, was paralyzed last year

Canadians killed in Afghanistan honoured during emotional dedication ceremony

One-hundred-fifty-eight Canadian soldiers died during the mission

It’s snow joke: Up to 30 cm of snow expected to fall in northeastern B.C.

Alaska Highway, Fort Nelson to be hit with August snowstorm, according to Environment Canada

‘I’m just absolutely disgusted’: Husband furious after B.C. Mountie’s killer gets day parole

Kenneth Fenton was sentenced to prison after he fatally struck Const. Sarah Beckett’s cruiser

Sea-to-Sky Gondola in B.C. likely out of commission until 2020

Sea to Sky Gondola carries between 1,500 and 3,000 people every day during the summer season

Most Read