It might be April Fool’s Day today, but there’s nothing to laugh about these new ICBC insurance rates.
As of Monday, a 6.3% increase to basic insurance rates on an interim basis for all new and renewal policies took effect.
“The approval of ICBC’s basic rate change on an interim basis is consistent with past applications and will lessen the depletion of ICBC’s already low basic insurance capital while the BCUC reviews the full application” reads a statement.
Many might remember Attorney General David Eby calling the ICBC financial situation a “financial dumpster fire” back in 2018. Along with the increase to basic insurance rates, a couple of other measures also came into effect today to help ICBC save money.
Beginning April 1st, there is now a cap on pain and suffering payouts for minor injuries. The maximum payout anyone can receive in this situation is now $5,500.
Furthermore, an online civil resolution tribunal for disputes valued at $50,000 or less has also been launched.
However, there is some fierce opposition to these changes.
On Sunday, The Trial Lawyers Association of BC (TLABC) announced they are pressing forward with a constitutional challenge against these new ICBC changes. They argue that these changes violate the Constitution and the Charter of Rights and Freedoms.
A constitutional challenge means a law is being challenged in court to determine if it violates or is inconsistent with the Constitution of Canada, including the Canadian Charter of Rights and Freedoms.