Major improvements are coming for accident benefits with the Insurance Corporation of British Columbia (ICBC) for the first time in 25 years, as announced by Attorney General David Eby.
Among the reforms are a $5,500 limit on pain and suffering for minor injury claims and an independent dispute resolution process for certain motor vehicle injury claims effect April 1st, 2019.
The cost of minor injury claims, since 2000, has increased 265%.
Also, retroactive January 1st, 2018, ICBC will double the overall medical care and recovery cost allowance to $300,000.
Changes expected to save $1 billion annually #ICBC
— My Prince George Now (@mypgnow) February 6, 2018
“For too long, difficult decisions have been put off and growing financial problems at ICBC hidden from the public. The changes we’re initiating today will reduce ICBC’s claims costs by more than $1 billion every year, helping make it sustainable for decades to come,” Eby said in a statement.
“We’re putting ICBC’s priority back where it should be – providing fair, affordable rates for British Columbians, and giving drivers peace of mind with appropriate care if they are in a collision.”
Eby also announced ICBC will consult with customers on major revisions to its rate structure, looking to ensure bad drivers pay more while good drivers pay less.
“British Columbians can no longer afford to keep paying more and more for their auto insurance every year, and this is the decisive and immediate action which is needed to relieve the pressure on ICBC’s rates,” said Joy MacPhail, chair, ICBC board of directors, in a statement.
“These changes make the injured customer our top priority, by redirecting payments away from legal costs into significantly enhancing the care and treatments for anyone who is injured in a crash.”
There is no word yet on how much premiums will rise, if at all.
These reforms come following ICBC’s projected net loss of $1.3 billion for 2017-18.
Today we’re announcing significant changes to B.C.’s auto insurance system to prevent large annual rate increases and provide increased care to injured customers. Get the facts at https://t.co/JRpyU1TD37 https://t.co/rmARTLcMpj https://t.co/sDLWtmQaVU #ChangingICBC
— ICBC (@icbc) February 6, 2018
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