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

B.C. declares state of emergency as wildfires rage

More than 3,300 firefighters are battling more than 500 fires

Police, muni on site of break-in at pump station

Investigation being conducted but no public safety concern, officer says

Nanaimo Lakes fire a model for new satellite mapping technology

B.C.-based technology company uses Nanaimo Lakes fire to create animated map of fire progress.

Ladysmith 49ers U11 AA team mount fourth place finish at provincials

The U11 AA Ladysmith 49ers hosted the Regional Island Tournament at Holland… Continue reading

Sonic the Hedgehog movie casting call in Ladysmith next week

Film to hire 100 people as extras to play role of ‘townsfolk’

Average Canadian family spends 43% of income on taxes: study

Fraser Institute’s consumer report shows taxes accounting for larger chunk of income each year

‘Can’t erase history’ by tearing down statues, Minister says

Environment Minister Catherine McKenna spoke on the contentious removal of John A. Macdonald

Man seriously injured in Lower Mainland home explosion

Police are trying to figure out what led to a homemade explosive detonating in a Coquitlam home

Canadian soccer captain Christine Sinclair continues to lead fight against MS

Burgers to Beat MS has raised more than $11 million since its inception in 2009

VIDEO: Post-surgery monologue comedy gold

If you’ve ever had surgery with anaesthetic you know the coming out of it process can be a treat.

LETTERS: Doctors speak out on surgical wait times for B.C. patients

‘Governments know they will lose private clinic lawsuit’

Thieves steal supplies, tools and juice boxes from B.C. summer camp

‘Take a moment to think about who you stole from,’ says Burns Bog Society’s Mark Robertson

Women-owned businesses generate $68,000 less revenue than men’s: survey

When Dionne Laslo-Baker sought a bank loan to expand her burgeoning organic popsicle and freezies business in 2014, she was “shocked” by the feedback she received from one of the bankers.

Most Read