DonLever Posted February 6, 2020 Share Posted February 6, 2020 (edited) https://vancouversun.com/news/local-news/live-b-c-to-switch-to-no-fault-auto-insurance-trim-rates-20-per-cent-in-2021 VICTORIA – B.C. motorists are about to see a dramatic change to their auto insurance, as well as a 20 per cent cut to their premiums next year, under a new no-fault system announced by the B.C. government. Premier John Horgan unveiled Thursday the largest reforms to auto insurance since the creation of the Insurance Corp. of B.C. more than four decades ago, as his government struggles to stop continuing financial losses at ICBC. No-fault insurance will mean people involved in vehicle crashes can no longer sue each other for damages — except in cases involving court convictions for offences like negligence, street racing, impaired driving, as well as in cases of faulty manufacturing, botched repairs and the over-service of alcohol by a business. Instead, people will receive benefits, payments for medical treatment and compensation directly from ICBC, using amounts set by the province depending on the type of injury. “It’s time for change at ICBC,” said Horgan. “A 20 per cent decrease in rates in the years ahead is a symbol to the people of British Columbia that we are going to wrestle this problem to the ground.” The switch will upend B.C.’s litigation-based insurance model, in the process saving ICBC an estimated $1.5 billion annually in legal fees that the NDP government pledged will be redirected to cut rates, boost treatment benefits and quicken response times for claims. “You shouldn’t need a lawyer to access the benefits you’ve paid for,” said Attorney General David Eby. “The current auto insurance system in British Columbia simply doesn’t work.” The government will introduce enabling legislation in the spring session of the legislature, which starts next week. But the no-fault system won’t come in until May 1, 2021 – just five months before the scheduled provincial election. In the meantime, ICBC’s basic rates will not increase in 2020, the government revealed Thursday. In 2021, when no-fault takes effect, basic and optional rates will be reduced an average of 20 per cent, saving motorists on average $400 a year, said Eby. Had the government not made the change, rates would have risen 36 per cent over the next five years, adding an average of $650 million to an annual insurance package, according to government estimates. The cuts to premiums come after ICBC redesigned its rate risk structure in 2018, leading to savings for some motorists but steep hikes for inexperienced drivers and youth. Government figures appear to show the rate cut in 2021 would save a Burnaby driver with one year’s experience as much as $1,570 annually on basic and optional insurance. Eby admitted it sounds “too good to be true” that B.C. will move to a model that boosts benefits and cuts premiums. But he pointed to other provinces like Manitoba and Saskatchewan as already operating such systems. “It’s only because we see it actually being delivered in two other province that we believe we can do it,” he said. The new no-fault system will boost the maximum lifetime care benefits an injured person could receive from $300,000 to $7.5 million, with the additional promise that more funding will be available for visits to physiotherapists, chiropractors, counsellors and other recovery services. For example, the amount ICBC will pay in lost wages is set to increase to $1,200 a week under no-fault, compared to $740 a week set in 2019 and only $300 a week before that. People who earn more than that amount can choose to purchase additional optional insurance for extra wage benefits. A person’s doctor, not ICBC, will decide what recovery treatments are needed and for how long, according to the province. In another scenario, involving an injured child, ICBC said no-fault would provide new up-front permanent care aides worth $10,000 a month, homemaking costs, missed school compensation of up to $20,000 a year and recreational benefits that would under the current system require a lawsuit and court awarded judgement. Edited February 6, 2020 by DonLever 3 Link to comment Share on other sites More sharing options...
Popular Post Wilbur Posted February 6, 2020 Popular Post Share Posted February 6, 2020 Lawyers won't be happy about this. 4 3 Link to comment Share on other sites More sharing options...
PhillipBlunt Posted February 6, 2020 Share Posted February 6, 2020 4 minutes ago, Wilbur said: Lawyers won't be happy about this. Good 3 Link to comment Share on other sites More sharing options...
redhdlois Posted February 6, 2020 Share Posted February 6, 2020 6 minutes ago, Wilbur said: Lawyers won't be happy about this. No more gravy train.....and hopefully no more John Shorthouse ads ! 4 Link to comment Share on other sites More sharing options...
J-Dizzle Posted February 6, 2020 Share Posted February 6, 2020 First glance looks positive (although I'm hesitant to call anything involving icbc that)... I guess we'll see if it holds up/where the quirks are when it's implemented. Link to comment Share on other sites More sharing options...
Heretic Posted February 6, 2020 Share Posted February 6, 2020 8 minutes ago, Wilbur said: Lawyers won't be happy about this. What do you call a thousand lawyers at the bottom of the ocean? A good start. 2 Link to comment Share on other sites More sharing options...
Violator Posted February 6, 2020 Share Posted February 6, 2020 Well see how things turn out i have heard of some crazy settlements people have gotten over the years. 1 Link to comment Share on other sites More sharing options...
Wilbur Posted February 6, 2020 Share Posted February 6, 2020 6 minutes ago, J-Dizzle said: First glance looks positive (although I'm hesitant to call anything involving icbc that)... I guess we'll see if it holds up/where the quirks are when it's implemented. As long as compensations for injury is fair, it's hard to take it as anything but positive. That's a crucial "as long as" though. 1 Link to comment Share on other sites More sharing options...
Darius Posted February 6, 2020 Share Posted February 6, 2020 something is not adding up here... 20 percent decrease in premiums more payouts shorter wait times no lawyer required wheres the catch? too many positives 1 Link to comment Share on other sites More sharing options...
GoodCanadianKideh Posted February 6, 2020 Share Posted February 6, 2020 2 minutes ago, Darius said: something is not adding up here... 20 percent decrease in premiums more payouts shorter wait times no lawyer required wheres the catch? too many positives Apparently, a third of the fees are currently being paid out to lawyers. Both from ICBC and the personal injury lawyers earning 30% commission from the injured parties. By cutting out the lawyers, that money will go directly to the parties involved. The CBC did an interview with Horgan and ICBC. These were some of the items mentioned (this is just my recollection, not direct quotes). People will be rewarded for not using a lawyer to take ICBC to court, further driving up costs. 1 1 Link to comment Share on other sites More sharing options...
Type R Posted February 6, 2020 Share Posted February 6, 2020 Heard someone say today that this would mean, if you someone hits you, and you have to make a claim, both peoples rates go up from it. 1 Link to comment Share on other sites More sharing options...
Darius Posted February 6, 2020 Share Posted February 6, 2020 5 minutes ago, GoodCanadianKideh said: Apparently, a third of the fees are currently being paid out to lawyers. Both from ICBC and the personal injury lawyers earning 30% commission from the injured parties. By cutting out the lawyers, that money will go directly to the parties involved. The CBC did an interview with Horgan and ICBC. These were some of the items mentioned (this is just my recollection, not direct quotes). People will be rewarded for not using a lawyer to take ICBC to court, further driving up costs. amazing how things work when lawyer fees and the bureaucracy that comes with dealing with lawyers gets snipped out of the picture....hopefully all of these positives they are forecasting are true. 1 Link to comment Share on other sites More sharing options...
Popular Post Squamfan Posted February 6, 2020 Popular Post Share Posted February 6, 2020 27 minutes ago, redhdlois said: No more gravy train.....and hopefully no more John Shorthouse ads ! 33 minutes ago, Wilbur said: Lawyers won't be happy about this. But we will still have this beauty 6 Link to comment Share on other sites More sharing options...
Warhippy Posted February 6, 2020 Share Posted February 6, 2020 One of the biggest things ICBC needs to do is remove the insurance of luxury vehicles. Any vehicle not designated as a fleet/work vehicle over $100,000 should have to be insured by a private company. I think this is a good start myself, but really the most simple thing would be to repeal all changes and go back to what ICBC was prior to 2003 when the BC Liberals and Campbell changed the rules. When ICBC generated zero profit and little debt and literally just insured cars end of story 1 1 2 Link to comment Share on other sites More sharing options...
brownky Posted February 6, 2020 Share Posted February 6, 2020 As long as the ambulance chasers lose, we all win in the end. Hopefully the idiot drivers and text & drivers are all punished heavily all the same. 1 1 Link to comment Share on other sites More sharing options...
bishopshodan Posted February 6, 2020 Share Posted February 6, 2020 Oh yea, I trust ICBC will be fair and square with the settlements. 1 2 Link to comment Share on other sites More sharing options...
Tre Mac Posted February 6, 2020 Share Posted February 6, 2020 48 minutes ago, Wilbur said: Lawyers won't be happy about this. They knew this was coming, which is why you saw a Diamond & Diamond ad on every commercial break during a Canuck game this past year. 16 minutes ago, Squamfan said: But we will still have this beauty Maybe Zuckerman can get into coaching - his philosphy is sound. "My advice, score a goal before the opposition does." 1 Link to comment Share on other sites More sharing options...
CBH1926 Posted February 6, 2020 Share Posted February 6, 2020 (edited) Shysters all over B.C are in mourning after reading this article. Edited February 7, 2020 by CBH1926 1 Link to comment Share on other sites More sharing options...
Tortorella's Rant Posted February 6, 2020 Share Posted February 6, 2020 14 minutes ago, Tre Mac said: They knew this was coming, which is why you saw a Diamond & Diamond ad on every commercial break during a Canuck game this past year. Maybe Zuckerman can get into coaching - his philosphy is sound. "My advice, score a goal before the opposition does." "Call me so I can &^@# over your spouse instead of you." What a slug. I hate those mother &^@#ers. 3 Link to comment Share on other sites More sharing options...
Tre Mac Posted February 6, 2020 Share Posted February 6, 2020 2 minutes ago, Tortorella's Rant said: "Call me so I can &^@# over your spouse instead of you." What a slug. I hate those mother &^@#ers. I heard his ads for a year before I actually saw what he looks like, pretty much exactly who I envisioned minus a tail, pitchfork and a ring of fire. The seediest looking mofo out there. 2 Link to comment Share on other sites More sharing options...
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