IBC applauds BC's announcement of a minor injury cap to curb rising auto insurance rates
VANCOUVER, April 23, 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 move forward with legislation to introduce a $5,500 cap on general damages awards for those suffering minor injuries that result from auto accidents, effective April 1, 2019.
"A minor injury cap has been used effectively in other provinces to help control costs and limit the rate pressures facing drivers, without limiting their access to the care they need," said Aaron Sutherland, Vice-President, Pacific, IBC. "Drivers in BC pay more for auto insurance than in any other province in Canada. These reforms are an important first step to limit the rate increases facing drivers in the years ahead."
BC is the last province to introduce measures to limit awards for minor injuries and other provinces have seen significant auto insurance reforms in recent years, as compared with BC.
"Today's changes will help relieve the financial pressure facing the Insurance Corporation of British Columbia (ICBC), but are unlikely to reduce rates for BC drivers," Sutherland continued. "Opening ICBC to competition and giving drivers the ability to shop around for their auto insurance would bring significant savings, and must be part of any long-term solution to the challenges in BC's auto insurance system."
A recently released report by MNP confirmed that opening ICBC to competition would save drivers up to $325 annually on auto insurance. This report, and more information on how auto insurance in BC compares with other Canadian provinces, can be found at the links below:
Additional Resources
- Betterautoinsurancebc.ca
- The Benefits of Competition in the Provision of Automobile Insurance in BC
- Poll: Auto insurance attitudes in BC
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.
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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