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

Rock Creek family inspiration for new boxing event

Rock Creek will host some of the best provincial boxers at Rumble in Rock Creek

Fruitvale man identified in fatal zipline accident in Thailand

Spencer Donaldson, 25, was from Fruitvale, B.C., the city’s mayor has confirmed

Fruitvale man, 25, dies after falling from zipline in Thailand, reports say

Bangkok Post says man fell from Flight of the Gibbon zipline in Chiang Mai

VIDEO: Killer whales hunt for seals in Vancouver harbour

Bigg’s killer whales feed on marine mammals like seals, sea lions, dolphins and even other whales

VIDEO: B.C.’s waving granny gets incredible send-off from school kids

Tinney Davidson has been waving at students on their way to school for over 11 years, but is moving in a month

Struggling B.C. adoption agency elects new board that intends to keep it open

The previous board announced that Choices would close May 31

Drug decriminalization report welcomed in East Kootenay

Provincial report recommends decriminalizing people who use illicit drugs, shift focus to treatment

New flight service an ‘angel’ for medical patients

Angel Flight East Kootenay will fly medical patients to Kelowna or Vancouver

Vancouver man, 19, charged in human trafficking case involving teen girl

The 16-year-old girl was reported missing and later discovered in Vancouver

Family dog stolen from Kootenay backyard

RCMP appealing for information on pregnant Karelian bear dog missing from Elko, B.C.

Blaine, Wash. inn owner, charged with smuggling people into B.C., granted bail

Robert Joseph Boule ordered to turn away anyone indicating a plan to enter Canada illegally

Most Read