Province announces changes to ICBC including a cap on minor injury claims

Minor injury claims through ICBC will now be capped at $5,500 as the B.C. government scrambles to end the insurance corporation’s financial crisis.

This is one of a handful of changes announced today in an effort to make up a projected $1.3 billion deficit for ICBC’s fiscal year while keeping rates affordable for drivers.

"ICBC was created to provide affordable insurance to all B.C. drivers, but years of reckless decisions by the previous government have thrown the corporation into financial chaos," said David Eby, B.C.’s attorney general.

"Today we start making the tough decisions that will stem ICBC's losses, keep insurance affordable and provide enhanced care for people injured in automobile accidents.”

Eby says the changes will reduce ICBC’s claims costs by more than $1 billion every year.

If no action was taken, B.C. drivers would face premium increases average $400 or more.

The main change, which will take effect on April 1, is that limit of $5,500 on pain and suffering for minor injury claims.

The cost of these claims has increased 265% since 2000 and B.C. is the last province in Canada to take this kind of action.

Another change will see an increased amount of care available for anyone injured in a crash, regardless of fault.

The overall medical care and recovery cost allowance will be doubled to $300,000, which will be made retroactive to Jan. 1, 2018.

The final change is the addition of an independent dispute resolution process for certain motor vehicle injury claims.

These changes are expected to reduce the amount ICBC spends on legal fees and expenses, which consume a quarter of the company’s budget.

Eby also announced today that ICBC would be consulting with customers on major revisions to the corporation’s rate structure with the goal of ensuring good drivers pay less and bad drivers pay more.

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"British Columbians can no longer afford to keep paying more and more for their auto insurance every year, and this is the decisive and immediate action which is needed to relieve the pressure on ICBC's rates," said Joy MacPhail, chair of ICBC’s board of directors.

"These changes make the injured customer our top priority, by redirecting payments away from legal costs into significantly enhancing the care and treatments for anyone who is injured in a crash."

ICBC’s injury claims totalled $2.7 billion in 2016, an increase of 80% in the last seven years.

Learn more about all of these change by visiting the ICBC website.