ICBC is planning to roll out their “no-fault insurance” model province wide on May 1st.
BC drivers can expect to save an average of $400 annually along with better access to recovery healthcare under this new program.
The biggest difference between the new model and the old model is that the injured party cannot sue for damages, such as loss of wages, under the new model. This provision had previously led to millions of dollars in compensation.
Now, the injured party won’t get one big payout but instead both parties, irrespective of fault, are eligible to receive payments. This payment structure is similar to how one may receive worker’s compensation board payments.
“I think it’s a better system because there are more benefits for people to get better, and fault still matters, you will still pay higher premiums if you cause a crash.” said Nicholas Jimenez, president and CEO of ICBC
He further explained that, “A big part of the savings in the new system is the fact that we won’t be spending hundreds of millions of dollars on litigation.”
Critics of “no-fault insurance” say that ICBC has taken away the whole point of insurance, which is that many provide for a few. Those who are heavily injured in an accident would benefit more from a bigger payout, and the financial security it brings with it, rather than dividend payments.
People who feel skeptical and less protected under the new model are being directed to spend their ICBC rebate cheque on private disability insurance.