The government of British Columbia is proposing amendments to legislation in hopes of revitalizing ICBC operations and processes, announced David Eby, Attorney General.
The changes are focused toward stabilizing ICBC’s rising legal and administrative costs, updating processes and procedures and improving insurance rate affordability for B.C. drivers.
"For years, B.C. drivers have had to pay more and more simply to cover the spiralling legal and administrative costs at ICBC,” said Eby. “We can't right the past, but we can put ICBC back on track to deliver more affordable rates and better coverage for drivers moving forward.”
The proposed changes to lower insurance rates come in the wake of a financial crisis as well as a public outreach project to assess public opinion which ended April 5.
Eby addressed the public in early Feburary stating, “ICBC was created to provide affordable insurance to all B.C. drivers, but years of reckless decisions by the previous government have thrown the corporation into financial chaos.”
“Today we start making the tough decisions that will stem ICBC’s losses, keep insurance affordable and provide enhanced care for people injured in automobile accidents.”
If approved by the legislature, several amendments would be made to the Insurance (Vehicle) Act (IVA) and the Civil Resolution Tribunal Act (CRTA), introducing improvements to accident benefits which have not been revised in more than 25 years. ICBC outlines two central changes to the current processes and procedures.
Firstly, the amendments would accelerate the dispute resolution process for cases under $50,000, shortening the two to three-year process to approximately 90 days.
Secondly, the definition of minor injuries would be clarified and a $5,500 limit will be instated on pain and suffering payouts for minor injury claims.
The changes are estimated to reduce ICBC collective claims costs by over $1 billion each year. ICBC believes the amendments are necessary to alleviate the growing injury costs in B.C. which have increased from $1.5 billion in 2009 to $2.7 billion in 2016.
If approved, the majority of amendments to both acts would become effective April 1, 2019.
