ICBC to implement no-fault-type system next year

Under the new system, which begins next May, people involved in a crash will only be able to sue each other directly if there are criminal convictions, manufacturing and repair problems or in cases where businesses over-serve alcohol to a driver.

Otherwise, ICBC will be responsible for handing out compensation, including medical expenses, to all parties involved in a crash, while restricting the money that goes to fighting legal battles. Compensation amounts will be pre-determined by ICBC and based on the types of injuries a driver sustains.

Care decisions will be made by physicians in the new system and the money will be paid out directly to care providers, while money for lost wages will be available to everyone – including students, care providers, and those who are self-employed.

In order to solve disputes, the new process will use a civil resolution tribunal. There will be an appointed fairness office to review complaints.

RELATED: ICBC brings in ‘Fairness Office’ to restore trust, accountability

ICBC has avoided calling the new system “no-fault.”  The change does not mean drivers who are deemed to be responsible for causing a crash do not face consequences. If drivers are found to be at fault, their insurance will increase and there may be other consequences, including criminal charges.

The Attorney General says the new system will work since it is already in place in two other provinces.

“This reflects the overwhelming burden of legal costs and dramatically inflating court awards on our insurance system,” says David Eby.

The province conceded the trial lawyers association will not be happy with nor supportive of this change. But, with other provinces like Saskatchewan and Manitoba using similar systems they are confident this can survive a court challenge.

In fact, the B.C. Trial Lawyers Association (TLABC) says it is deeply disappointed with the changes since it will prevent people from getting fair compensation if they are hurt in a crash.

“In the spring of 2019, the provincial government introduced legislative changes, including what it promised the public was a “minor” injury cap. In fact, the cap included brain injuries, depression, PTSD, chronic pain and many other serious injuries. Nine months into this new law, government is announcing the injury cap policy has failed,” said John Rice, TLABC President in a release. “This is a broken promise to British Columbians, a failed policy, and now a deliberate taking away of the right of British Columbians to receive fair access to courts and fair settlement for those injured on our roads.”

Rice claims the new system rewards bad drivers while reducing the chances of people who are hurt to receive a fair settlement.

However, the province says the changes are expected to save $1.5 billion annually in legal fees. It adds the money will go towards rate cuts, increased benefits and faster claims processing.

“Despite the success of our reforms to date to douse the dumpster fire, the burned-out bin is sitting in front of a building that hasn’t been renovated in 50 years,” says Eby, adding ICBC’s role as insurer and opponent in court didn’t help.

“That contradictory role has really undermined public trust and these benefits and these rates seem to be too good to be true to many people,” he says.

Both Eby and Premier John Horgan say trusting ICBC will be a challenge, but the system now is expensive and broken.

“Litigation delays treatment, litigation increases costs, litigation creates an adversary relationship with what should be a ‘for people’ corporation,” says Horgan

Ahead of legislation, the province consulting with disability groups, doctors and such to figure out the specific details and maximum payouts. They say for the most catastrophic injuries payouts will be up to $7.5-million but could be even higher.

With files from Lasia Kretzel