Legislation to limit ICBC minor injury payouts face legal challenge

Date: 18 MAY 2018posted by Car Rentaledited by WinX

Lawyers are worried about the insurance compensation being capped at $5500 for minor injuries are threatening legal action against the provincial government. So to backtrack and explain the situation. ICBC throughout the last few years has been losing money, and a lot of it. While the crown corporation has blamed the losses from a rise in accidents and injury claims, the government had also been siphoning profits and added it to provincial revenue, removing the rainy day fund, which came and did not leave. In order to combat the losses, the government introduced tow significant bills in legislature.

First, the government will no longer tolerate having British Columbian's car insurance premiums pay to administer costly and lengthy lawsuits with multiple experts in BC Supreme Court for minor injuries. Secondly, no longer permit endless growth in "pain and suffering" awards for minor injuries that have increased more than 260% in the last 10 years. These measures were to combat was what was described the situation at ICBC as a "dumpster fire," and to help clear more than $1 billion of debt at the insurance corporation. Ron Nairne, who co-chairs the Trail Lawyers Association of British Columbia, says the legislation is unconstitutional and discriminatory.

"Just because of physical injury, one group is being denied full compensation, another is still granted access to it. If this proceeds unchanged, the expectation would be that we would seriously consider litigation once this comes into effect next year." "It's not at all clear that it will be the claimant's individual family doctor and right now, the way the system works in Alberta, is to say that the family doctor or any other treating doctor is not allowed to make decisions about whether an injury is minor or not." Nairne is also asking for an independent review to determine how bad ICBC is in debt. "It's not a matter of people either don't get compensated or people's premiums have to go up by 400 dollars. We don't know exactly what ICBC's true financial picture is. Everybody seems to be accepting that they're $1.3 billion in the red right now."

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