ICBC rolls out new rates, injury cap this week

New measures introduced to help the struggling insurer get back on its feet

ICBC rolls out new rates, injury cap this week

Insurance News

By Lyle Adriano

It may be April Fools’ Day, but the Insurance Corporation of British Colombia (ICBC) is not joking about its implementation of much-needed changes for the province’s auto insurance system.

Starting today, April 01, a new cap of $5,500 will be placed on pain and suffering claims for minor injuries in car accidents. Together with the new restriction, ICBC has also raised its auto insurance rates by 6.3%.

The insurer has implemented the changes to help itself get out of the red; it has revealed that it is on track to lose nearly $3 billion in two years due to the surge in crashes, claims, injuries and legal fees, unless it can restrict awards on minor claims. The cap is projected to save ICBC a billion dollars annually.

“When you put together all the changes being made, it’s a generational shift in how auto insurance is being done,” said Attorney General David Eby. “We have three billion reasons it should have been changed a long time ago.”

The ICBC has put out a new definition for minor injuries, which now refers to sprains, strains, bruises, cuts and whiplash injuries where symptoms last fewer than 12 months and where nothing is broken. Concussions and mental health injuries are also considered minor, Vancouver Sun reported, but if they persist after four months, then the cap no longer applies to them.

In addition, it will be up to an individual’s doctor, not the ICBC, to diagnose the injury. The doctor will also be responsible for creating a medical treatment plan and will determine if the injuries are minor.

If the driver and the ICBC cannot agree on a settlement under the $5,500 cap, both must take their dispute to the Civil Resolution Tribunal. The tribunal will also handle all injury claims valued below $50,000.

 

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