News broke in September 2017 that ICBC was swimming with over $1 billion in debt. Now, they are making some massive changes to their policy.
Starting on April 1, 2019, the Government of British Columbia will pay a maximum of $5,500 for pain and suffering following a crash.
The NDP announced that these changes will result in a reduction costs for costs by more than $1 billion per year.
ICBC Announces Major Changes
The $5,500 cap will not apply to wage loss and medical care, or for legal costs.
ICBC says the average payout for pain and suffering of minor injuries was $16,500 in 2016.
— Justin McElroy (@j_mcelroy) February 6, 2018
It is worthwhile to note, however, that these changes do not apply to wage loss, medical care, or legal costs. Also, the average payout for pain and suffering for minor injuries was $16,500 in 2016, and that does not convey the highest claims made.
While they are slashing payouts for pain and suffering for minor injuries, they are increasing them in other ares. For example, they plan to double the limit that can be claimed for medical care and expenses. They will raise the payout from $150,000 to $300,000, retroactive to Jan. 1. In addition, this will increase injury benefits, and introduce a dispute resolution process for particular claims.
B.C. is the last Canadian province with no restriction of what you can sue for. Hence, ICBC hopes these changes decrease the incentive to file claims against the provider.
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