IBC welcomes B.C.’s plan to cap auto insurance payouts

The Insurance Bureau of Canada (IBC) has welcomed the B.C. government’s plan to introduce limits on awards for minor injuries stemming from auto collisions in beginning in April of 2019.

“A minor injury cap has been used effectively in other Canadian provinces to help control costs and limit the rate pressures facing drivers,” Aaron Sutherland, vice-president of IBC Pacific, said in a news release.

Related: Reactions to ICBC’s “financial dumpster fire”

IBC continues to call for B.C.’s auto insurance market to be opened to competition from private insurers, which it says would be key to a long-term solution to the challenges faced by the province’s auto insurance system.

“Caps alone will not reduce rates in B.C.,” said Sutherland. “The experience and innovative tools Canada’s private insurers have brought to other Canadian provinces can help improve the affordability of auto insurance in B.C.”

B.C. has also committed to doubling care and recovery benefits for accident victims effective immediately. This marks the first time the province has increased accident benefits since 1991.

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This story was originally published by Canadian Insurance Top Broker.