The British Columbia government is directing changes for the Insurance Corporation of British Columbia (ICBC) to bring about an end to its financial crisis, while keeping rates affordable for B.C. drivers, Attorney General David Eby announced.
"ICBC was created to provide affordable insurance to all B.C. drivers, but years of reckless decisions by the previous government have thrown the corporation into financial chaos," Eby said. "Today we start making the tough decisions that will stem ICBC's losses, keep insurance affordable and provide enhanced care for people injured in automobile accidents. We're going to make ICBC work for people again."
Today's changes come in the wake of multiple revelations about decisions and inaction by the previous government, leading to ICBC projecting a 2017-2018 net loss of $1.3 billion. B.C. drivers could face premium increases averaging $400 or more, if no action is taken.
Taking effect April 1, 2019, the changes include:
* A new limit of $5,500 on pain and suffering for minor injury claims. The cost of those claims has increased 265% since 2000. British Columbia is the last province in Canada to take this kind of action.
* The first major improvements in accident benefits in 25 years, dramatically increasing the care available for anyone injured in a crash, regardless of fault. The overall medical care and recovery cost allowance will be doubled to $300,000. This change will be made retroactive to Jan. 1, 2018, so it will effectively be in place to protect injured drivers and passengers immediately. See more on this benefit below.
* An independent dispute resolution process for certain motor vehicle injury claims.
Together, these changes will reduce the amount ICBC spends on legal fees and expenses, which have grown to consume 24% of ICBC's budget. The savings from this change, when coupled with other planned initiatives, will restore ICBC to financial sustainability and finance the planned accident benefit improvements.
Disputes over certain motor vehicle injury claims, including the classification of an injury, will be adjudicated by B.C.'s Civil Resolution Tribunal, an independent body that already adjudicates strata and small claims disputes in the province.
"We're putting ICBC's priority back where it should be - providing fair, affordable rates for British Columbians, and giving drivers peace of mind with appropriate care if they are in a collision," Eby said.
Accident benefit details:
* Doubling the lifetime allowance for medical care and recovery costs for those catastrophically injured in a car accident from $150,000 to $300,000. Legislation will be introduced with the intention of making this benefit retroactive to Jan. 1, 2018, in order to start immediately helping seriously injured British Columbians.
* Covering a greater variety of treatment services.
* Significantly increasing the amount covered for treatments, so customers don't have to pay out-of-pocket.
* More than doubling wage loss payments to $740 per week, almost doubling home support benefits to $280 per week, tripling funeral cost coverage to $7,500, and increasing death benefits to $30,000.