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

UPDATED: Crews remain on scene of Jaffray hay barn fires

Emergency personnel remain on scene throughout Wednesday to put out hot spots

Dynamiters prepare for main camp

The Kimberley Dynamiters will host their main camp on Aug. 30 - Sept. 1 at the Civic Centre

UPDATED: MV Balfour ferry returns to service

The 65-year-old ferry had been out of action for a month

Kiara Ker earns bronze at U17 National Basketball Championships

This was the third time the local basketball player represented Team BC at the national level

Vehicle stolen from downtown Fernie found torched at transfer station

RCMP are seeking witnesses to the theft of a yellow 2002 Subaru… Continue reading

VIDEO: Title of 25th Bond movie is ‘No Time to Die’

The film is set to be released in April 2020

‘Unsubstantiated’ bomb threat against CP Rail in Revelstoke

On Aug. 18, a bomb threat was made against CP Rail in Revelstoke

Victoria father charged with double murder of his daughters takes the stand

Andrew Berry pleaded not guilty to the December 2017 deaths

New ‘Matrix’ film set with Keanu Reeves and Lana Wachowski

Fourth installment to feature Reeves as Neo and Carrie-Anne Moss as Trinity

Catholic church buys $7.5M equestrian facility in B.C., plans ‘agri-retreat’ centre

Church hopes to grow crops, host students and others on Bradner property

New regulations require training for B.C. addiction recovery homes

Inspections, standards replace ‘wild west,’ Judy Darcy says

Trans Mountain gives contractors 30 days to get workers, supplies ready for pipeline

Crown corporation believes the expansion project could be in service by mid-2022

66% of B.C. residents want opt-out system for organ donation: poll

Support was lowest in Ontario and the Atlantic provinces

B.C. rainbow crosswalk covered in mysterious black substance

Black substance spilled intentionally near Vancouver Island school and difficult to remove

Most Read