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

Ferry connecting Port Hardy and Bella Coola expected to set sail this summer

Its first in-service route will sail in central coast waters on May 18, 2019.

BC Parks Student Ranger Program accepting applications for 2019 season

12 crews of four student rangers will work in regions throughout the province including Bella Coola.

Over $650,00 given to rural communities thanks to Rural Dividends

Five communities, including Williams Lake, are receiving $10,000 for project grants

Pregnant Cariboo firefighter tries to save own house from blaze

Julia Flinton and Anthony Sellars both worked on the 2017 wildfires

Road report for Highway 20

Fog patches and slippery sections; Drive BC

VIDEO: U.S. Congress to probe whether Trump told lawyer Cohen to lie

At issue is a BuzzFeed News report that about negotiations over a Moscow real estate project

Explosion sends B.C. firefighter to hospital

Kelowna fire crews responded to a blaze at Pope’sGallery of BC Art & Photography on Friday

Ex-Mountie investigating ‘Surrey six’ murders pleads guilty to obstruction

Derek Brassington entered his plea in B.C. Supreme Court on Friday

Rare ‘super blood wolf moon’ takes to the skies this Sunday

Celestial event happens only three times this century

Arrest made after historic B.C. church hit by arson

The fire at the 150-year-old Murray United Church in Merritt was considered a possible hate crime

B.C. dangerous offender in court for violating no-contact order, sends letter to victim

Wayne Belleville was shocked to see a letter addressed to him from his shooter, Ronald Teneycke

Man blames his loud car radio, sirens for crash with B.C. ambulance

Tribunal rejects bid to recoup ICBC costs after crash deemed 100-per-cent his fault

RECALL: Salmon Village maple salmon nuggets

Customers warned not to eat product due to possible Listeria contamination

More than 100,000 toxic toys named in Canada-wide recall

Plastic doll contains levels of phthalates over allowable limit and may pose chemical hazard

Most Read