B.C. to introduce auto insurance pay-out limits in 2019 to save $1B annually
VICTORIA — Allowing people to sue for pain and suffering in car accidents has been viewed as a fundamental principle in British Columbia, but that changed Tuesday when the government joined Canada’s other provinces in limiting payouts to some crash victims because of a financial crisis at the public insurance corporation.
Attorney General David Eby said a payment cap of $5,500 for pain and suffering on minor injury claims is a necessary component of the NDP government’s plan to bring back financial stability to the Insurance Corporation of British Columbia, which faces a projected net loss of $1.3 billion this year.
The changes will save up to $1 billion annually, Eby estimated.
Eby would not comment directly on the possibility of further premium hikes this year after an increase of 6.5 per cent last year.