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Major Change to ICBC- No Fault Insurance Coming


DonLever

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On 2/6/2020 at 12:29 PM, 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

Well, the cost went up more than 20% for many people.

 

I have a squeaky clean driving record changed to a similar vehicle 4 years newer and no more driving to/from work and my insurance is 70$ a month more. WTF

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On 2/27/2020 at 2:48 PM, taxi said:

 

Just curious, are people really voting to throw away their rights to compensation, because they believe lawyers are scamming the system?

Lawyers have been scamming every system there is since the word "lawyer" became a word.  They are parasites for the most part.  ::D

 

I'm sure there is the odd exception.

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About time.  On of the main reasons for the current issues with ICBC was years of Liberal governments siphoning money from ICBC sending it to general revenue.  ICBC, BC Hydro money should stay with them.  Not used to try an fudget the budget. 

 

Global news link

New bill aims to ban using ICBC profits to cover other government costs

 

The B.C. government has announced profits earned from ICBC will no longer be used to cover other government expenses. Richard Zussman has the details.

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3 hours ago, thedestroyerofworlds said:

About time.  On of the main reasons for the current issues with ICBC was years of Liberal governments siphoning money from ICBC sending it to general revenue.  ICBC, BC Hydro money should stay with them.  Not used to try an fudget the budget. 

 

Global news link

New bill aims to ban using ICBC profits to cover other government costs

 

The B.C. government has announced profits earned from ICBC will no longer be used to cover other government expenses. Richard Zussman has the details.

Yep. I feel much better about these NDP-led reforms to ICBC than lawyers' protests against them.

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8 hours ago, thedestroyerofworlds said:

About time.  On of the main reasons for the current issues with ICBC was years of Liberal governments siphoning money from ICBC sending it to general revenue.  ICBC, BC Hydro money should stay with them.  Not used to try an fudget the budget. 

 

Global news link

New bill aims to ban using ICBC profits to cover other government costs

 

The B.C. government has announced profits earned from ICBC will no longer be used to cover other government expenses. Richard Zussman has the details.

This is actually great news. The only reason icbc is broke is because they had no money to invest to pay out claims. The only issue I see with this is that icbc may not actually have any money saved under the new system. 

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27 minutes ago, Tortorella's Rant said:

So if it takes effect next May, how does that work for me with my insurance in February? I'm not paying what I paid this year. I'll walk out. I only didn't think year on the promise it'll be better next year.

How will you "walk out" exactly? Only game in town.

From what I've heard ICBC has a few tricks up their sleeves. For example, I had a client who was promised a reduction, but then they spread out his safe driver's reduction over 15 instead of 9 years. He was paying more after the reduction. 

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2 hours ago, taxi said:

How will you "walk out" exactly? Only game in town.

From what I've heard ICBC has a few tricks up their sleeves. For example, I had a client who was promised a reduction, but then they spread out his safe driver's reduction over 15 instead of 9 years. He was paying more after the reduction. 

Government monopolies are communist, and totally unfair.  ICBC is a bloated bureaucracy of the worst kind, because they are a government monopoly.  Get a post box in Alberta, and get private insurance there.  Then just drive here with Alberta plates. 

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On 2/6/2020 at 12:04 PM, DonLever said:

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.

This is good and bad 

 

The good 

 

Lawyers are out

 

The Bad 

 

Lawyers are out

 

Lost of wages is a max of $1200 a week so anyone earning more will have to buy more insurance

 

$1200 a week is they call the Net amount to the gross salary of $93,000, 

 

If you are not earning $93,000 a year at the time of you injury you aren't getting $1200 a week

 

ICBC model is based on the Sask model 

 

That model does not account for earning potential (courts do)

 

If you are 30 years old starting a job at 40k a year gross, that's it, that's what you will earn for the rest of your life if you become disable. Except you won't get 40k you will get the net amount so a quick figure lets say 20% tax 40,000+0.8=32,000/52= $615 a week 

 

Another example, If you have a child and you stay at home til the child is 6 years old but when your child is 4 you get injured and can never go back to work you get the industry rate. I bring this up because my wife is currently staying at home with our child. 

 

So what happens, my wife was making 80k a year when she left her job. The industry rate will be somewhere between 50-55k. It is based on the median salary of BC at the time of injury.

 

What happens if you are a part time worker making 13.85 (min wage) but you are also a university student. You get the industry wage. It won't matter if you are studying to be a doctor or engineer or a teacher, it is industry wage for you. 

 

No earning potential will be applied to your case. (that's why we go to court each case is different)

 

I could also get into why they chose net income over gross income but with out diving to far, let me put it this way. There are many ways to lower your taxes, spousal deduction, rrsp deduction, new home buyer deduction are some that most people will understand there are many but when you receive net income you can not get your taxes back. (where did people free choice go)

 

Then their is the problem with not paying into CPP. So this question needs to be answered. Is the wage set for a life time (I assume it will be adjusted for inflation other wise your 40k will become peanuts in 20 years) or do they stop the money at retirement age if so you have lost years of CPP contributions.

 

The Sask model pays out lump sums including the wage, the BC government has said it will to and it is following the Sask model how does 250k sound for a life time of never walking again cause that's what they pay in Sask

 

I recommend everyone to look at the Sask model before you make a decision about how good or bad this is 

 

 

 

 

 

 

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On 3/6/2020 at 2:45 PM, Alflives said:

Government monopolies are communist, and totally unfair.  ICBC is a bloated bureaucracy of the worst kind, because they are a government monopoly.  Get a post box in Alberta, and get private insurance there.  Then just drive here with Alberta plates. 

That's an awful idea. Where you need to get insured is based on residency. You can't fake residency by getting a PO box. They will look at things like where you are working, etc.. This would be an attempt to commit insurance fraud and result in your insurance being void.

 

I do agree that icbc is not efficient though.

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On 3/6/2020 at 2:19 PM, gurn said:

How long is other jurisdictions, Alberta Washington State etc.,  insurance valid in B.C.?

You have 30 days after becoming a resident to change your insurance over to icbc.

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  • 1 month later...
19 hours ago, Nucksfollower1983 said:

so just got some great news today. because of 1 50/50 accident 3 years ago where the other guy claimed injury my premiums are going up by 80$ per month. anyone else enjoying the new icbc rate calculation method?

It's always been this way. When you get 50/50 fault, it counts as a full claim against your insurance, unless you pay out ICBC for half the damages in cash. 

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17 minutes ago, taxi said:

It's always been this way. When you get 50/50 fault, it counts as a full claim against your insurance, unless you pay out ICBC for half the damages in cash. 

 yes I know that. I am irritated that I am being punished twice for it. already got my discount cut because of it, now I am being charged for it again.

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