Big changes are coming to ICBC.
Attorney General David Eby says the changes will focus on reducing legal costs, which eat up 24% of its overall budget.
Eby says as of April 1st 2019 a new limit of $5500 dollars will be placed on pain and suffering for minor injury claims.
“As a result of these changes we expect ICBC will save about one billion dollars a year in claims costs. Its important to note this is the case even after the additional costs of long overdue improvement to accident benefits are included”
Eby also announced that ICBC will be consulting with customers on major revisions to the rate structure.
“Bad drivers must pay more and good drivers deserve a break. the consultation on rate design will ensure these reforms on how insurance rates are set reflect the values and priorities of British Columbians.”
Eby says minor I-C-B-C injury claims disputes will be redirected to the civil resolution tribunal to be decided quickly and to lower litigation costs.
Eby wouldn’t answer whether or not these changes will impact future rates.
“The first job is to put out the dumpster fire and then the second job will be to see where we are going in the future.”
Eby says the medical care and recovery costs will also be doubled, retroactive to January 1st, 2018, to $300,000.
ICBC is facing a net loss of $1.3 billion at the end of this fiscal year.