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

Man flees Bay Centre after daytime sexual assault in downtown Victoria

The suspect physically and sexually assaulted a 12-year-old girl shopping with a friend

Chinese New Year takes to the streets of Victoria

Hundreds brave chilly temperatures to usher in the Year of the Dog

Storm snuffs out lights on Saanich’s Ten Mile Point

Environment Canada wind warning calls for a brief “respite” before winds of up 90 kilometres resume

Sidney fire fighters get their first truck back

After years of neglect, the truck is running just fine

Sidney’s taxes going up this year

Town calls increase “modest,” represent a $34/year jump for the average household

WATCH: Vancouver Island man catches dashcam video of near head-on crash

Video shows oncoming van cross over centre line

How to keep local news visible in your Facebook feed

Facebook has changed the news feed to emphasize personal connections. You might see less news.

VIDEO: Protesters rally for affordable housing ahead of B.C. budget

Residents call on province to keep locals housed

School shooting unfathomable to Saanich student

Claremont Grade 10 student reflects on the carnage inflicted on U.S. schools

#Metoo movement causing confusion in many men, fear of missteps with women: experts

Being painted by the same sweeping brush as those alleged to have mistreated women has angered men

Liberals to dig deeper, aim higher on gender equality in 2018 federal budget

Finance Minister Bill Morneau said the budget would include measures to boost women in the workforce

Vancouver Island’s Teal Harle finishes fifth in Olympic Men’s Slopestyle skiing

‘I’ve definitely surpassed every expectation I had for the Games’ – Harle

Body of missing skier found

Man’s truck found in Revelstoke Mountain Resort’s parking lot covered in ‘several days’ snow’

Most Read