BC Attorney General David Eby believes that new rules on claim limits will allow the Insurance Corporation of BC (ICBC) to get back up on its feet.
Eby had introduced legislation to put limits on soft-tissue injury payout from vehicle accident claims, which could save ICBC from surging costs. Under the legislation, which comes into effect April 01, 2019, soft-tissue injury payoffs will be capped at $5,500.
“We hope and are advised that this legislation might get ICBC back in the black which means that the savings are in the neighbourhood of $1 billion,” Eby said.
ICBC lost $1.3 billion in the last fiscal year.
The attorney general also mentioned that the government will be doing much more than just imposing a cap on minor injury claims to help the struggling insurer.
“This is not the extent or the end of the work we are doing at ICBC,” he said.
Eby noted that the government is expecting complaints from lawyers, since legal fees make up about one-third of the cost of soft-tissue claims.
Global News reported that the new legislation, introduced earlier this week, does not address insurance rates in the province.
Another change proposed by the legislation is the shift of ICBC claims cases under $50,000 being handled by the Civil Resolution Tribunal, instead of BC Supreme Court. The transfer should save ICBC around $1.3 billion.