Former NDP cabinet minister Joy MacPhail was appointed to chair the ICBC board in 2017, as the corporation struggles with a deteriorating financial situation. (Black Press files)

ICBC expecting $1.18 billion annual loss as new injury caps take effect

Injury lawyers ramping up opposition to minor injury tribunal

The Insurance Corp. of B.C. continues to struggle with increasing accident and injury claims as it prepares to implement new limits on pain and suffering claims on April 1.

ICBC posted its latest results Thursday, showing an $860 million net loss for the first nine months of the fiscal year that ends March 31. Net claims incurred during that period total nearly $5 billion, an increase of about $600 million from the same period a year earlier. The current projected net loss for the year is $1.18 billion.

ICBC’s new rules for pain and suffering, and an out-of-court dispute settlement system for minor injury claims take effect April 1. ICBC is also facing a court challenge from the Trial Lawyers’ Association of B.C., arguing the changes are an attack on the independence of the courts to settle disputes.

The lawyers’ group has also applied to be intervenors at the B.C. Utilities Commission, which is hearing arguments before setting the next rate increase for ICBC’s monopoly basic insurance.

Reports of “lowball” offers from ICBC adjusters were refuted by the Attorney General’s ministry Wednesday, with the release of an internal case review.

Attorney General David Eby called the losses “unacceptable” and focused on personal injury cases.

“A key reason for ICBC’s worsening financial crisis is the escalating costs of settling personal injury claims, which have increased 43 per cent in the last five years,” Eby said in a statement Thursday. “This trend is being exacerbated by the current gaps in the system which allow, for example, the use of almost unlimited experts who prepare costly reports in litigation that lasts for years, all paid for by drivers. Over the past year, the increasing use of expert reports has contributed to inflating ICBC’s settlement costs by 20 per cent.”

RELATED: ICBC lowball injury offers aren’t driving up costs, ministry says

RELATED: ICBC overhaul includes $50 fee for lending your car to relative

“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.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

Just Posted

OPINION: The more walkable a city, the more liveable it is

New pedestrian advocacy group, Walk in Nanaimo, being formed

Homelessness Action Week a call for citizens to see the issue in a new light

Homelessness Action Week Oct. 13-19 includes coffee talk, facility tours, film screening

Nanaimo Clippers thankful after three straight wins on road trip

City’s junior A hockey club wins seventh in a row, trades alternate captain

LETTER TO THE EDITOR: Empower court system, RCMP to curb crime

Justice system gives free rides to repeat offenders, says letter writer

Nanaimo Ladysmith school district deciding how best to provide menstrual products for students

Early cost estimates tag $75,000 for product dispensers; trustees seek student consultation

B.C.’s rural paramedic program expands, with home support

Advanced care ambulance staff added for six communities

BC Ferries sees steady traffic of post-Thanksgiving weekend travellers

Ferries filling up fast, sailing waits at some terminals

Proposed 76-unit residential development would neighbour north Nanaimo mall

Council approves first and second reading of re-zoning application for 4961 Songbird Pl.

Map on Elections Canada site sends voters to Cedar landfill

Address for polling station correct, but Google Map address differs

Nanaimo software designer creates hunting-themed card game

Duck Buck Moose involves skill, cunning and luck of the draw

Nanaimo-Ladysmith candidates compare, contrast platforms on debate stage

Energy policy, veterans’ affairs and more debated Thursday at Beban Park

City council mulls emergency medical responder training for firefighters

Council directs staff to prepare report on firefighter medical training upgrades

Singh says NDP would form coalition with the Liberals to stop Tories

Singh was in a Liberal-held riding Sunday afternoon in Surrey where he was pressed about his post-election intentions

‘Save the kids!’ Dorian survivor tells the harrowing story of his Canadian wife’s death

Family held a funeral and placed Alishia Liolli’s remains in a niche at a cemetery in Windsor, Ont.

Most Read