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

Gas prices spike in northern B.C. ahead of the long weekend

Fuel went up 17 cents overnight in Prince Rupert

Rocking Through The Ages with grads of 2019

Barriere Secondary’s Class of 2019 presented their show ‘Rocking Through The Ages’… Continue reading

Explore the true meaning of Easter

Bunnies and baskets, chocolates and candies. It’s that time of year when… Continue reading

Workshop coming on how to apply for funding and attract volunteers for your non-profit

One of the biggest challenges to community not-for-profits is the ability to… Continue reading

Did you know our planet is constantly under attack?

The planet is comprised of a remarkable set of organisms that, when… Continue reading

It was no Kentucky Derby: B.C. girls host foot-long snail race

Two Grade 3 students in White Rock put four snails to the test in a hotly-contested street race

Police probe eight fires set at B.C. elementary school

Nanaimo RCMP say fires appear to have been set intentionally

Undercover cops don’t need warrant to email, text suspected child lurers: court

High court decision came Thursday in the case of Sean Patrick Mills of Newfoundland

Whitecaps fans stage walkout over club’s response to allegations against B.C. coach

Soccer coach has been suspended by Coastal FC since February

Three climbers presumed dead after avalanche in Banff National Park

One of the men is American and the other two are from Europe, according to officials

VIDEO: Trump tried to seize control of Mueller probe, report says

Special counsel Robert Mueller’s report revealed to a waiting nation Thursday

BC Ferries to pilot selling beer and wine on select sailings

Drinks from select B.C. breweries and VQA wineries will be available on the Swartz Bay to Tsawwassen route

B.C. awaits Kenney’s ‘turn off taps,’ threat; Quebec rejects Alberta pipelines

B.C. Premier John Horgan said he spoke with Kenney Wednesday and the tone was cordial

Most Read