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

VIDEO & SLIDESHOW: B.C. Horseshoe Association hosts Abbotsford tournament

B.C. International Highwayman Open runs on Saturday and Sunday

Fire breaks out in Abbotsford home

Crews were able to quickly douse the fire and save the structure

Recent food symposium aims to create ‘valley food culture’

Event held in Abbotsford drew 100 people form local food community

Man arrested after police standoff and fire at Abbotsford home

Suspect allegedly breached conditions to not be near victim or her home

Microbrewery seeks permission to expand food & beer servings

Council gives thumbs up to Loud Mouth Brewery’s application for a lounge endorsement

Rescuers finally persuade Eiffel Tower climber to come down

The official said the man was ‘under control and out of danger’ on Monday night

Federal government funds millions to help B.C. police spot drugged driving

Many police departments have expressed wariness about using the only government-approved roadside test

Judge: Mississippi 6-week abortion ban ‘smacks of defiance’

The new law would prohibit most abortions once a fetal heartbeat can be detected

On-duty Vancouver cop facing dangerous driving charges after cyclist hit

The woman was taken to hospital with minor injuries

Oil companies, 24-cent gap between B.C., Alberta to be focus of gas price probe

Premier John Horgan called the spike in gas prices ‘alarming’

Growing coffee, tea, lemons and papayas in the Fraser Valley

‘Anything that is grown anywhere on the planet we can grow’

Motorcycle deaths spike 50% since 2017

Riders were most likely fatally crash on the weekends compared with the rest of the week

Mother of accused charged in death of Surrey teen girl found in torched SUV

Manjit Kaur Deo charged with ‘accessory after the fact’ in 2017 death of Surrey teen

5 to start your day

Corgis put on a show at the Cloverdale Rodeo, family of B.C. pilot killed in Honduras remembers him and more

Most Read