B.C. Attorney General David Eby announces changes to B.C.’s public insurance system. (B.C. government)

B.C. Attorney General David Eby announces changes to B.C.’s public insurance system. (B.C. government)

B.C. moves ahead on removing lawyers from ICBC cases

David Eby vows change will increase injury benefits

The B.C. government has introduced changes to Insurance Corp. of B.C. laws that Attorney General David Eby has predicted will lead to a “street fight” with personal injury lawyers over the enormous legal fees they generate suing the corporation.

Eby told the legislature Wednesday his latest amendments will deliver a promised 24-fold increase in the maximum payout for serious disabling injuries, from about $300,000 to $7.5 million, and in some cases even more to cover costs of life-long nursing care.

The new system takes effect in May 2021, and Eby says it will do more than improve care for seriously injured people. He vowed that it will increase wage loss payments by up to 60 per cent and finance a 20 per cent reduction in premiums paid by B.C. drivers next year. Basic ICBC insurance rates are to be frozen after April 1 this year.

The changes are to be financed by continuing the NDP government’s move to divert disputes from court to a new civil resolution tribunal, which already is dealing with smaller disputes. Getting all cases out of court is expected to save ICBC an estimated $1.5 billion in legal fees, courtroom experts and related costs once the changes are in effect.

RELATED: Horgan rejects ‘no fault’ description of new ICBC rules

RELATED: ICBC shifting to Alberta model, private insurers say

The Trial Lawyers Association of B.C. has questioned the independence of the tribunal approach, since its members are appointed by the provincial government and make decisions that directly impact ICBC’s bottom line. Soaring injury claims and legal costs have contributed to a $2.5 billion net loss in ICBC operations over the past two years, forcing the government to transfer money from its general budget to keep the corporation afloat.

The Insurance Bureau of Canada, representing private insurance companies, noted that ICBC’s proposed rate reduction will cost it $713 million in sales revenue. ICBC’s own books show its capital reserves are “significantly depleted” and well below its management and regulatory targets after the years of substantial payouts and losses, IBC representative Aaron Sutherland said.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC legislatureICBC

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

LightStrike Germ-Zapping Robot designed by Xenex Disinfection Services. (Contributed photo)
Germ-killing robot on the job at White Rock’s Peace Arch Hospital

Goal to match $100,000 donation met, say PAHF officials

A home on the corner of at the corner of 63B Avenue and 165A Street boasts a display of thousands of lights that bring in people throughout the city to check it out. The family also collects donations for BC Children's Hospital. (Photo: Lauren Collins)
MAP: Christmas light displays in Surrey and beyond

Send us pictures of your National Lampoon-style lit-up homes, nativity scenes or North Pole playlands

Lisa Batstone’s appeal of her conviction and sentence for the killing of her eight-year-old daughter is set for Jan. 12, 2021. (File photos)
South Surrey mother’s murder-appeal date set

Lisa Batstone is appealing her conviction and sentence in death of eight-year-old daughter

The final two weeks of the White Rock-South Surrey Titans’ football season has been cancelled, the association announced last week. (Contributed photo)
Titans ‘grateful’ despite earlier cancellation of minor football season

White Rock-South Surrey organization announce that final two weeks of the season won’t go ahead

A tongue-in-cheek message about wearing a face mask to curb the spread of COVID-19 on a sign outside a church near Royal Columbia Hospital, in New Westminster, B.C., on Sunday, Nov. 29, 2020. THE CANADIAN PRESS/Darryl Dyck
B.C.’s COVID-19 infection count climbs back up to 656

20 more people in hospital, active cases still rising

The westbound lanes of Highway 1 between Clearbrook and McCallum roads were closed to traffic Wednesday morning after a fatal collision involving a pedestrian.
Pedestrian dies after being struck by vehicle on Highway 1 in Abbotsford

Collision takes place early Wednesday morning between Clearbrook and McCallum roads

A teacher places the finishing touches on the welcome sign at Hunter’s Glen Junior Public School which is part of the Toronto District School Board (TDSB) during the COVID-19 pandemic in Scarborough, Ont., on Sept. 14, 2020. THE CANADIAN PRESS/Nathan Denette
Hindsight 2020: How do you preserve a year many Canadians would rather forget?

Figuring out how to preserve the story of the pandemic poses a series of challenges

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

Haley Callison. (Facebook photo)
Former B.C. pro hockey player frustrated with COVID-deniers after horrific bout with virus

Haleigh Callison hopes people will follow precautions and tone down the rhetoric

FILE – A near empty waterfront train platform is pictured in downtown Vancouver, Monday, April 20, 2020. THE CANADIAN PRESS/Jonathan Hayward
TransLink disables some services for second day due to ‘suspicious network activity’

Customers cannot use credit card or debit card at fare gates or Compass card vending machines

A man stands in the window of an upper floor condo in Vancouver on March 24, 2020. THE CANADIAN PRESS/Darryl Dyck
Change made to insurance for B.C. condo owners amid rising premiums

Council CEO Janet Sinclair says the change will mean less price volatility

Google Maps screenshot taken at 7:14 a.m.
Westbound Highway 1 lanes in Abbotsford closed as crews investigate serious crash

Crash occurred between McCallum and Riverside roads at around 4 a.m., next update at 8 a.m.

The Walking Curriculum gets students outside and connecting with nature. (Amanda Peterson/Special to S.F. Examiner)
‘Walking Curriculum’ crafted by SFU professor surges in popularity

The outdoor curriculum encourages students to connect with the natural world

Most Read