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

Easter Fun Day packs ‘em in for Penticton child and youth development centre

It’s expected record numbers of people turned up for the ninth annual Easter Fun Day

Community bands together as #PentictonStrong after fatal shootings

Many in Penticton have turned to social media to express their condolences

Medieval Faire in South Okanagan cancelled, Desert Park wooing other events

The Desert Park Exhibition Society board is looking into hosting another major event

City of Penticton has survey to get resident feedback

The City of Penticton is conducting a survey of residents to get feedback on local issues.

Mounties identify woman found dead on Kelowna beach

“Our investigators do not believe criminality was involved.”

Homeless activists outside Notre Dame demand ‘a roof too’

Wealthy people have donated millions to effort to rebuild cathedral after devastating fire

Pacific Poke bowl lovers can get a free taste at the restaurant’s ‘Grand Opening Event’

The restaurant will offer some of its specials Thursday evening at its Kelowna location

PHOTOS: Green Party Leader Elizabeth May says ‘I do’ on Earth Day

May and John Kidder got married Monday morning in Victoria

Okanagan resort seeking connnection to rail trail

Predator Ridge Resort slated to present wish for trail from resort to ORT to Vernon council

Youth Shelter Fundraiser encourages kids to play for a good cause

The fundraiser takes place April 27 at the EnergyPlex

Waterway Houseboats wins $2 million for damages caused in 2012 flood

Houseboat company wins lawsuit involving Province of British Columbia, District of Sicamous

Okanagan power outage scuttles – but not ruins – city’s mission’s Easter meals

Vernon’s Upper Room Mission will serve Easter dinner a day later due to downtown power outage

Sri Lanka invokes war-time military powers after nearly 300 killed in Easter bombings

Sri Lanka’s minister of tourism says 39 foreign tourists were killed in the Easter Sunday attacks

Netflix filming in North Okanagan

Multiple downtown locations and scenic areas to star in TV production

Most Read