VANCOUVER, Feb. 6, 2018 /CNW/ - On behalf of Canada's private auto insurers, Insurance Bureau of Canada (IBC) welcomes today's announcement that the British Columbia (BC) government will double accident benefits and introduce a cap on awards for minor injuries following auto accidents.
This announcement follows BC Attorney General David Eby's earlier statements detailing the financial challenges facing the Insurance Corporation of British Columbia (ICBC) and the significant increase in legal costs in BC's auto insurance system. BC is the last province to introduce measures to limit awards for soft-tissue injuries. Its accident benefits have not been increased since 1991, limiting the ability of injured parties to access the care they need.
"A minor injury cap has been used effectively in other Canadian provinces to help control costs and limit the rate pressures facing drivers," said Aaron Sutherland, Vice-President, Pacific, IBC. "But caps alone will not reduce rates in BC. Opening ICBC to competition and allowing Canada's private insurers to bring choice to the market would bring significant savings to BC drivers, and must be part of any long-term solution to the challenges in BC's auto insurance system.
"An MNP report released last week showed that opening ICBC to competition would save BC drivers up to $325 every year," continued Sutherland. "Drivers pay more for their auto insurance in BC than anywhere else in Canada. The experience and innovative tools Canada's private insurers have brought to other Canadian provinces can help improve the affordability of auto insurance in BC."
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About Insurance Bureau of Canada
Insurance Bureau of Canada (IBC) is the national industry association representing Canada's private home, auto and business insurers. Its member companies make up 90% of the property and casualty (P&C) insurance market in Canada. For more than 50 years, IBC has worked with governments across the country to help make affordable home, auto and business insurance available for all Canadians. IBC supports the vision of consumers and governments trusting, valuing and supporting the private P&C insurance industry. It champions key issues and helps educate consumers on how best to protect their homes, cars, businesses and properties.
P&C insurance touches the lives of nearly every Canadian and plays a critical role in keeping businesses safe and the Canadian economy strong. It employs more than 120,000 Canadians, pays $9 billion in taxes and has a total premium base of $52 billion.
For media releases and more information, visit IBC's Media Centre at www.ibc.ca. Follow IBC on Twitter @InsuranceBureau and like us on Facebook. If you have a question about home, auto or business insurance, contact IBC's Consumer Information Centre at 1-844-2ask-IBC.
If you require more information, IBC spokespeople are available to discuss the details in this media release.
SOURCE Insurance Bureau of Canada
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