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HomeNews100 Mile HouseBC Government Announces $5,500 Cap on Minor Injury Claims by ICBC

BC Government Announces $5,500 Cap on Minor Injury Claims by ICBC

Major improvements are coming for accident benefits with the Insurance Corporation of British Columbia (ICBC) for the first time in 25 years as announced Tuesday by Attorney General David Eby.

Among the reforms are a $5,500 limit on pain and suffering for minor injury claims and an independent dispute resolution process for certain motor vehicle injury claims effect April 1st, 2019.

The cost of minor injury claims, since 2000, has increased 265%.

Also, retroactive January 1st, 2018, ICBC will double the overall medical care and recovery cost allowance to $300,000.

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“For too long, difficult decisions have been put off and growing financial problems at ICBC hidden from the public. The changes we’re initiating today will reduce ICBC’s claims costs by more than $1 billion every year, helping make it sustainable for decades to come,” Eby said in a statement.

“We’re putting ICBC’s priority back where it should be – providing fair, affordable rates for British Columbians, and giving drivers peace of mind with appropriate care if they are in a collision.”

Eby also announced ICBC will consult with customers on major revisions to its rate structure, looking to ensure bad drivers pay more while good drivers pay less.

“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, ICBC board of directors, in a statement.

“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.”

There is no word yet on how much premiums will rise, if at all.

These reforms come following ICBC’s projected net loss of $1.3 billion for 2017-18.

The Canadian Taxpayers Federation is urging the BC Government to make even bigger changes.

“These changes don’t cut the sky-high rates that we are forced to pay today. We need a pumper truck for this ‘dumpster fire,’ not a squirt gun,” said Kris Sims, BC Director of the Canadian Taxpayers Federation in a media release.

“BC drivers pay the highest auto insurance rates in all of Canada and today’s announcement is little comfort to drivers. We need fundamental changes to ICBC and it needs to be opened up to competition. BC drivers need a choice and they need to be able to shop around to save money.”

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