ICBC’s costs for injury settlements and lawsuits are a major part of its deficit. (Black Press files)

ICBC lowball injury offers aren’t driving up court costs, ministry says

B.C. auto insurance monopoly struggling with rising legal, settlement costs

A review of Insurance Corp. of B.C.’s rising injury claim cases finds no evidence for a common complaint that the provincial monopoly makes low offers, the Attorney General’s ministry said Wednesday.

“ICBC is not responsible in any observable, systemic way for making inappropriate offers or inappropriately pressing cases and this generating legal costs,” says a report compiled by ministry lawyers.

“Instead, the claims files reveal beyond dispute that the longer the time taken to resolve a claim, the higher the cost.”

The review was conducted last summer using aggregate data from claim files, plus 100 randomly selected claims that were settled between 2013 and 2017. They included major or catastrophic industry claims and minor injury claims, some where claimants hired lawyers and some where lawsuits were filed.

Soaring accident rates and an 80 per cent increase in claims costs over seven years have plagued ICBC, prompting Attorney General David Eby to introduce changes that include a $5,500 limit on payouts for pain and suffering. That cap takes effect April 1.

RELATED: ICBC to cap pain and suffering payouts to stem losses

RELATED: ICBC moves to tighten safe driver discount rules

Minor injury claim costs have increased steeply, averaging about $30,000 each by last year. A third of that is legal costs, both to ICBC for lawyers and expert reports, and to customers who hire lawyers to sue the corporation.

The settlement cap and a new claim resolution system to keep cases out of court are expected to cut as much as $1 billion from ICBC’s costs. Another change that ICBC board chair Joy MacPhail called long overdue is increasing the maximum benefit for serious injury claims from $150,000 to $300,000.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

Just Posted

Pedestrian in serious condition after hit by car downtown Abbotsford

A youth was also hit, suffered minor injuries, police say

UFV eliminated in three by UBC

Men’s basketball team loses two straight after game one shocker

Fraser Valley Stage presents Starlight Radio Theatre

Abbotsford production features music from Big Band era

Abbotsford school facilities naming process to include Indigenous voice

Local policy changing to meet requirements in provincial policy

Abbotsford goes up 2-0 on Langley

Pilots win both games on home ice, series now shifts to Langley

B.C. students win Great Waters Challenge video contest

Video, mural and song about saving the salmon claims the top prize

B.C. athlete takes home gold in freestyle aerials at Canada Games

Brayden Kuroda won the event with a combined score of 121.65.

Cabinet likely to extend deadline to reconsider Trans Mountain pipeline

New round of consultations with Indigenous communities is coming

B.C. government provides $75,000 towards salmon study

Study looks at abundance and health of Pacific salmon in Gulf of Alaska

Murdered and missing honoured at Stolen Sisters Memorial March in B.C.

‘We come together to make change within the systems in our society’

UBC researchers develop inexpensive tool to test drinking water

The tricoder can test for biological contamination in real-time

Disgraced ex-Congressman Anthony Weiner released from prison

He was convicted of having illicit online contact with a 15-year-old North Carolina girl in 2017

Most Read