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

Non-Semiahmoo First Nation members opt out of footing connection costs: chief

Long-term resident who can’t pay $50K fee, says he ‘hasn’t a clue’ where to go now

PHOTOS: Fabric-formed concrete strengthens new Surrey gallery show and house under construction

Designer Omer Arbel’s work in ‘Particles for the Built World’ exhibit and at South Surrey home

Drivers injured, children OK after school-bus crash in Surrey

Incident happened near 68th Avenue and King George Boulevard

Police release photos of suspect in attempted gas station robbery in Surrey

Surrey RCMP say suspect took off without taking any money after he bear sprayed employee

Health Canada issues second warning on Surrey herbal clinic products

People advised to ‘immediately’ stop using A1 Herbal Ayurvedic Clinic Ltd. products

Eggs in South Surrey bald-eagle preserve hatch

Douglas-area eagle nest livestreamed online

Prince George sweeps to first-ever BC Hockey League crown

Spruce Kings beat Vernon Vipers 3-1 in the Okanagan Wednesday for 13th straight playoff win

Hwang’s first MLS goal lifts Whitecaps to 1-0 win over LAFC

Vancouver picks up first victory of season

Man identified in Vancouver’s fourth homicide of the year

30-year-old man was not known to police

RCMP locate missing Colony Farm psychiatric patient

Patient left last week on day pass from the hospital in Coquitlam

600 volunteers sign up to recall Maple Ridge MLAs over housing problems

Organizer urges province to reconsider position on Burnett modulars

Child-proof your windows ahead of warm weather: B.C. expert

Fifteen children were taken to BC Children’s Hospital for falls in 2018

B.C. trucker pleads guilty to lesser charges in fatal Manitoba crash

Gurjant Singh was fined $3,000 and given a one-year driving prohibition.

Australian author reacts to Chilliwack school trustee’s ‘book banning’ statements

John Marsden responds to ‘horror and outrage’ from adults about mildly sexual thoughts in his novel

Most Read

l -->