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

UPDATED: Eco warriors shut down Douglas Street at Fort Street in protest

Environmentalists to call on banks to divert investments into green infrastructure

WATCH: Soon-to-be guide dogs take part in the Amazing Puppy Race

10 puppies training to be guide dogs took part in a social Easter egg hunt

Ancient microbes discovered off the Juan de Fuca Ridge potentially offers glimpse into alien life

The marine bacteria is dependent on hydrogen, a compound present almost everywhere

Sign forbidding rabbit drop-offs gets stuffed bunnies instead

Residents seemingly undeterred by strict wording this Easter

Islander finding her calling in fledgling community paramedic program

Georgia Nelson’s work in Chemainus part of a new wave of small community health care delivery

Homeless activists outside Notre Dame demand ‘a roof too’

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

Second earthquake in less than two hours strikes off Vancouver Island

The first earthquake happened at 1:27 p.m., the second at 2:44 p.m.

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

May and John Kidder got married Monday morning in Victoria

Man’s body found in popular Cowichan Valley hiking area

Police say death not suspicious after discovery in Stoney Hill area overlooking Saltspring Island

Multiple sailing waits as BC Ferries deals with Easter Monday traffic

89 extra sailings had been added to the long weekend schedule

Mandatory spaying and neutering looms for outdoor Chemainus cats

North Cowichan considers bylaw to control stray and feral cat issues

Stranded photographer rescued from rising Comox Valley waters

Responders use kayak to save man, equipment

Electronic music repels mosquitoes

New study finds Skrillex music slows mosquito’s feeding and sex

Most Read