New ICBC model looks to remove lawyers and cut rates

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“It’s time for change at ICBC. The old government ignored ICBC’s problems, allowing it to become a system that made lawyers rich, while drivers paid too much for insurance. We’re going to transform ICBC to lower rates for B.C. drivers – saving you an average of $400 on your insurance, while also improving care for people who have been injured in a crash,” Horgan said.

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The new care-based insurance system is forecast to remove more than $1.5 billion in the first full year, savings that will be passed on to ICBC customers through lowered insurance rates.

Under Enhanced Care coverage, a driver who is responsible for a crash will continue to be found at fault. This will remain a primary factor in what drivers pay for their insurance. If a driver causes a crash, their premiums will go up.

Those injured by dangerous drivers convicted of certain Criminal Code offences, such as impaired driving, will still be able to sue for additional compensation.

“You shouldn’t need a lawyer to access the benefits you’ve paid for, ” said David Eby, attorney general.
“By removing expensive lawyers and legal fees from the system, we are making ICBC work for British Columbians again with more affordable insurance rates and much better coverage, so anyone injured in a crash gets the care they need.”

To give British Columbians confidence that they will be treated fairly, the planned legislation will require ICBC, by law, to assist every person who makes a claim and endeavour to ensure they receive all of the care and benefits to which they are entitled.

Customers who still have complaints or disputes about their claim, benefit payments or fairness issues will not need a lawyer to have them resolved. They will have recourse through: the Civil Resolution Tribunal, which is independent of ICBC; the B.C. ombudsperson; and the upcoming ICBC fairness officer, who will be appointed by government to ensure greater independence from ICBC.

As ICBC transitions to this new care-based model, government’s previous work to improve the finances at ICBC means there will be no basic rate change this year. The zero per cent basic rate change that takes effect on April 1, 2020, is the lowest any government has delivered in almost a decade.

Without significant changes, the province says rates would need to continue to rise by about 35 per cent over the next five years.

Highlights of Enhanced Care coverage:

Government will introduce legislation to create the new care-based system, which would take effect on May 1, 2021, so that British Columbians will benefit from:

* average savings of $400 on their premium, compared with the previous full-year policy;

* care and treatment benefits that are 24 times higher than today, up to at least $7.5 million;

* wage loss coverage that is 60 per cent higher than today; and

* new benefits – such as benefits for full-time students, caregivers, those working in the family business or those approaching retirement, who suffer income loss following a crash – replacing lump-sum payments that were previously awarded only through lengthy and expensive litigation.