Accident rates, injury claims and court costs have driven ICBC into deficit in recent years. (Black Press Media)

‘Fault matters’ at ICBC, injured people matter more, B.C. premier says

John Horgan, David Eby reject lawyer labels ‘no fault’ and ‘meat chart’

Lawyers call it a “meat chart.” It’s the schedule of payments for car crash injuries used by what they call “no fault” vehicle insurance companies – this much for losing an arm, that much for a leg.

That system is coming to the Insurance Corp. of B.C. in April 2021, after Premier John Horgan and Attorney General David Eby started digging into the soaring costs and rates faced by ICBC and its monopoly customer base. A battle with personal injury lawyers that began with capping “pain and suffering” payments and diverting smaller ICBC injury disputes to an independent tribunal is about to heat up.

The role of the “Civil Resolution Tribunal” will expand next year to deal with disputes in all injury cases, saving ICBC an estimated $1.5 billion in legal fees, courtroom experts and related costs.

The Trial Lawyers Association of B.C. was quick to challenge the tribunal approach, in a letter to Eby as it took into effect last April.

Calling it “independent” is questionable, “given that tribunal members are appointed by government for modest fixed term, and who render decisions that directly impact ICBC, a Crown corporation that answers directly to you as Attorney General,” the letter states.

The trial lawyers went on to attack the government’s definition of minor injury, and described an injured person’s ability to estimate lost future earnings as “a supreme feat of clairvoyance heretofore unknown to British Columbians.”

Announcing the change Thursday, Horgan defended it as a return to the spirit in which former premier Dave Barrett created it in 1973 as a break-even proposition. “It was not a for-profit enterprise, it was a for-people enterprise,” he said.

Horgan said the payment schedule includes a 24-fold increase in the maximum payout for serious, disabling injuries, from about $300,000 to $7.5 million, and in some cases more to cover costs of life-long nursing care.

He rejected the idea that taking disputes out of a slow, expensive trial process means there is “no fault” assessed to people who cause accidents.

“Fault matters still,” Horgan said. “You can’t run into someone without consequences. Your rates will go up. If you’re found criminally responsible or negligent, you can be sued. So we’re not taking the opportunity for claimants to sue. We’re saying in most instances, let’s provide the care first.”

Eby described the effect of lawsuit-based insurance on the health care system.

“I’ve had a number of meetings with doctors where they express increasing concern about the role they’re asked to play in the litigation system,” Eby told reporters at the B.C. legislature. “They have lawyers calling them and asking them to run certain tests on their patients that they don’t feel are medically necessary. They’re asked to spend an increasing amount of their time writing reports for the purposes of litigation, which they feel is distracting them from care-giving.”

RELATED: B.C. to cut ICBC rates 20% before 2021 election

RELATED: Horgan regrets ICBC rate hikes for young people

With a $5,500 cap on pain and suffering awards in place since last April, ICBC estimates it will save $1 billion in the current fiscal year on legal costs. But if the current lawsuit system continued, it estimates the capped payments would total more than $900 million by 2022, paid out to people who had temporary discomfort rather than a permanent disability.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC legislatureICBC

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Wally Oppal says policing ‘too important’ to be left to the police

Oppal was keynote speaker at a Surrey Board of Trade “Hot Topic Dialogue” breakfast event Wednesday

Flip-flopping pleas in Surrey man’s 2018 murder in West Kelowna

Following an shocking guilty plea on Feb. 25, Tejwant Danjou applied to retract that plea on Feb. 26

Surrey skater speeds his way to four golds, a silver at BC Winter Games

‘I just really enjoy going fast on the ice,’ says Barnett Liu, 14

‘Urgent’ need for Metro Vancouver homeless count volunteers

Organizers say another 100 people are sought to help in Surrey and Burnaby

UPDATE: Surrey RCMP say missing 14-year-old has been found and is safe

Brayden Ritchat, 14, had been last seen in the 10800-block of 141st Street in Whalley on Feb. 21

VIDEO: Minister says consider coronavirus outbreak when planning for spring break

Foreign Affairs minister points to rash of new cases appearing in places like Italy and Iran

Alberta tourist dies after plunge from 70-metre cliff in Stanley Park

The 26-year-old hopped a fence at Prospect Point on fell to a walkway below, police said

B.C. man who pulled a gun on off-duty cop gets two years in prison

Encounter also led police to a home where 100 guns and explosives were found

New Westminster woman’s ‘out of character’ disappearance probed by police

She left without telling anyone, prompting investigation by Major Crimes Unit, police say

EDITORIAL: Fraser Health needs to be transparent to fight coronavirus panic

Fraser Health and other authorities are not helping by being vague in recent communications

Riverdale actress Lili Reinhart rescues puppy from Langley shelter

American actress named her adopted pup Milo

How clean is your favourite local restaurant or café?

Online inspection reports allow consumers to find health hazard of all food facilities in region

Protecting privacy key to stopping spread of COVID-19, B.C. health officials say

The number of coronavirus cases in B.C. remains at seven

Most Read