By Canadian Press

B.C. government targets lawyers, legal costs in ICBC rate shake-up

Feb 6, 2020 | 12:30 PM

VANCOUVER — The British Columbia government is moving to curtail lawyers and legal costs in the public auto insurance system by severely limiting injured people’s ability to sue at-fault drivers or the auto insurer after a crash.

The government says legislation will be introduced in the coming weeks that will lower premiums at the Insurance Corporation of B.C. by about 20 per cent, an average of $400 in savings per driver.

If the legislation is passed it will take effect in May 2021 and will require ICBC to assist every person who makes a claim and ensure that they receive all their entitled care and benefits.

The government says that people can still sue at-fault drivers if they are convicted of a criminal offence linked to the crash, such as drunk driving, and they could also sue a vehicle manufacturer if a defect caused or contributed to the collision.

If a customer has a complaint about how ICBC handled their case, they can turn to the independent Civil Resolution Tribunal, the B.C. ombudsperson or the recently announced ICBC fairness officer.

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Attorney General David Eby has previously called the financial situation at the public auto insurer a “dumpster fire,” and the government believes this new system will free up more than $1.5 billion to lower rates by 2022.

This report by The Canadian Press was first published Feb. 6, 2020.