The Insurance Corp. of B.C. continues to struggle with increasing accident and injury claims as it prepares to implement new limits on pain and suffering claims on April 1.
ICBC posted its Thursday, showing an $860 million net loss for the first nine months of the fiscal year that ends March 31. Net claims incurred during that period total nearly $5 billion, an increase of about $600 million from the same period a year earlier. The current projected net loss for the year is $1.18 billion.
ICBCB次元官网网址檚 new rules for pain and suffering, and an out-of-court dispute settlement system for minor injury claims take effect April 1. ICBC is also facing a court challenge from the Trial LawyersB次元官网网址� Association of B.C., arguing the changes are an attack on the independence of the courts to settle disputes.
The lawyersB次元官网网址� group has also applied to be intervenors at the B.C. Utilities Commission, which is hearing arguments before setting the next rate increase for ICBCB次元官网网址檚 monopoly basic insurance.
Reports of B次元官网网址渓owballB次元官网网址� offers from ICBC adjusters were refuted by the Attorney GeneralB次元官网网址檚 ministry Wednesday, with the release of an internal case review.
Attorney General David Eby called the losses B次元官网网址渦nacceptableB次元官网网址� and focused on personal injury cases.
B次元官网网址淎 key reason for ICBCB次元官网网址檚 worsening financial crisis is the escalating costs of settling personal injury claims, which have increased 43 per cent in the last five years,B次元官网网址� Eby said in a statement Thursday. B次元官网网址淭his trend is being exacerbated by the current gaps in the system which allow, for example, the use of almost unlimited experts who prepare costly reports in litigation that lasts for years, all paid for by drivers. Over the past year, the increasing use of expert reports has contributed to inflating ICBCB次元官网网址檚 settlement costs by 20 per cent.B次元官网网址�
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B次元官网网址淚CBC is not responsible in any observable, systemic way for making inappropriate offers or inappropriately pressing cases and this generating legal costs,B次元官网网址� says a report compiled by ministry lawyers.
B次元官网网址淚nstead, the claims files reveal beyond dispute that the longer the time taken to resolve a claim, the higher the cost.B次元官网网址�
The review was conducted last summer using aggregate data from claim files, plus 100 randomly selected claims that were settled between 2013 and 2017. They included major or catastrophic industry claims and minor injury claims, some where claimants hired lawyers and some where lawsuits were filed.
Soaring accident rates and an 80 per cent increase in claims costs over seven years have plagued ICBC, prompting Attorney General David Eby to introduce changes that include a $5,500 limit on payouts for pain and suffering.
tfletcher@blackpress.ca
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