FINDING AN ICBC CURE
Some may argue the NDP government is dealing with financial problems at the Insurance Corp. of British Columbia at the expense of victims of car accidents — or, at least, lawyers representing those victims.
But, despite the criticism, Attorney General David Eby, the minister responsible for ICBC, remains determined to bring the insurer into the black. Legislation introduced on Monday should help bring that about.
ICBC is projected to lose $1.3 billion in the fiscal year just ended and Eby noted claims costs increased 80 per cent between 2009 and 2016. A scan of past provincial budgets offers no inkling of the “financial dumpster fire” that ignited in 2017. In fact, as late as 2016, the budget estimated average annual net income of $125 million over the three-year forecast period.
So, the deterioration of ICBC’s finances was not evident from the government’s accounting. It took a wide-ranging audit by a third party to reveal that its accounting was a work of fiction.
Eby’s remedy is tough love: a cap of $5,500 for pain and suffering on minor injuries claims, and a new civil dispute resolution tribunal for claims under $50,000 aimed at reaching settlements within 90 days rather than the current average of three years (and shunting lawyers out of the picture). New road safety initiatives are in the works to reduce frequency and severity of crashes as are limits on payouts for auto body repairs. At the same time, the maximum paid for serious injuries has doubled to $300,000 and will cover nursing care, medical, dental, occupational and funeral costs.
The Trial Lawyers Association of B.C. condemned the caps, calling the plan “rash and illconceived” but the Insurance Bureau of Canada praised it, noting B.C. is the last province to introduce measures that restrict awards for minor injuries.
There is bound to be debate over what constitutes a minor injury, even though the bill devotes four pages to a definition which is, briefly stated, a physical or mental injury that does not result in a serious impairment or a permanent serious disfigurement and is not resolved in 12 months. The legislation contains what columnist Vaughn Palmer called a “blankcheque provision” that allows the government to make regulations on any matter as it deems appropriate. In other words, there yet may be more fussing and fighting over the ICBC file.
Nevertheless, if Eby’s cure for ICBC can alleviate the Crown corporation’s financial woes without raising insurance premiums for safe drivers with good records, while ensuring crash victims get the care they need, it will be an achievement the government can crow about.