B.C. to introduce auto insurance pay out limits next year
February 6, 2018 by The Canadian Press
Print this page Share
VICTORIA – The British Columbia government will implement a $5,500 cap on pain and suffering for pay-outs to vehicle accident victims in a move to save $1 billion a year for the province’s public auto insurer.
Attorney General David Eby says the settlement limit on those injury claims will not take effect until April 2019, as part of legislation to be introduced by the New Democrat government.
Eby says the changes are part of a series of major adjustments at the Insurance Corporation of British Columbia amid predictions the agency will lose $1.3 billion by the end of this fiscal year.
Related: B.C. to introduce auto insurance pay out limits next year
He says immediate changes introduced today include doubling the amount of money available for care and recovery for accident victims to $300,000.
Eby says the average amount of claims for minor injuries adds up to $30,038 per person, with pain and suffering pay-outs averaging $16,500.
A rate increase was not announced, but increases of $400 or more for motorists are forecast if financial changes are not made.
Print this page Share
I always here how wonderful government insurance is and how inexpensive compared to other jurisdictions. Now we see they are 1 Billion dollars in the red and the government does not wish to raise rates. This is how governments run a business. Take from Peter to pay Paul. In other words raise everyone’s taxes to subsidize auto insurance. The government should stay out of business as they always turn it into a political fiasco to cover their poor decisions.
Well said William. I would add that not only are they more inefficient but they offer a substandard product that limits coverage in ways private insurers can’t and yet they still cannot provide their substandard product at a cost that is reasonable in contrast to the private sector. The myth that government can run a business, ANY business better than the private sector is laughable.