The British Columbia government is shaking things up at the Insurance Corporation of British Columbia to put the brakes on its financial crisis. Attorney General David Eby says if no action was taken, BC drivers were facing premium increases averaging $400 or more.
Eby says the changes will come in two parts:
"First we will table legislation that proposes to introduce a $5500 limit on payouts for pain and suffering for minor injuries. BC is the last province in Canada to take this kind of action."
There will also be increased support for major injuries. Increases to medical care and recovery costs for those "catastrophically injured" from a car crash will be retroactive to January 1st this year. The cap on payouts for minor injuries will not be retroactive.
As for part two:
" The second, and a significant part of the reform to these out of control costs for minor injuries, is our plan to table legislation that will empower BC's Civil Resolution Tribunal, also known as the CRT, to resolve minor motor vehicle injury disputes."
Eby also announced ICBC will consult with customers on major revisions to rates with the goal of ensuring good drivers pay less, and bad drivers pay more.
Eby says the changes will take effect on April 1, 2019. He expects the move will save ICBC about $1-billion annually in claims costs.