Major Change to ICBC- No Fault Insurance Coming

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On 3/8/2020 at 1:13 AM, Arrow 1983 said:

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 

 

 

 

 

 

 

Sask has an opt in/out model. There you can choose to pay extra for "tort coverage", which, if you get it, would allow to sue got full loses. BC is not getting this. In BC you will be stuck with their benefits, which may or may not increase with inflation, and their decisions about your case and health.