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

Man sentenced for smuggling drugs and shooting at border guards

Nathan Hall was arrested in Abbotsford in 2013 after day-long manhunt

UPDATED: Mission schools, UFV closing due to weather, road concerns

District announced that all public schools are closing early, parents should try to pick up kids

Measles case confirmed within Fraser Health region

One case within Fraser Health is related to the outbreak in three Vancouver schools.

Little interest shown regarding proposed 4.62 per cent tax hike for Mission

Only two people spoke at budget forum, more comments expected online

New public art piece for downtown Mission

The Tartan, a cubed art piece that will hang on First Avenue, will be created at a cost of $50,300

National Energy Board approves Trans Mountain pipeline again

Next step includes cabinet voting on the controversial expansion

VIDEO: Giants earn 40th victory in a 4-0 triumph over Victoria

G-Men move within a point of clinching the B.C. division banner at Friday’s at-home game in Langley

Girl heard saying ‘Help my Dad’ in suspicious radio message on Vancouver Island

Police asking for help following mysterious signals from somewhere between Comox and Sayward

Reports of rashes prompt closure of all Harrison Hot Springs pools

Public pool available after Fraser Health shut down all five mineral pools until further notice

No treatment for highly infectious measles, says doctor

10 cases of measles confirmed in Vancouver as of Friday

Two more measles cases confirmed in Vancouver

It brings the number of total cases within the city connected to the outbreak to ten

B.C. Special Olympics officially underway in Vernon

Athlete’s Oath: “Let me win. But if I cannot win, let me be brave in the attempt.”

Vancouver Aquarium wants your help to name a baby killer whale

The public helped name Springer’s first calf, Spirit, and is being asked to help with the second

Guards protest firing of fellow officers charged with assault at B.C. prison

Corrections officers demonstrated in Maple Ridge on Friday afternoon

Most Read