The changes to British Columbia’s auto insurance laws have created confusion and uncertainty for many people. In 2020, the provincial legislature voted for the Insurance Corporation of British Columbia (ICBC) to adopt a no-fault insurance model called Enhanced Care, which went into effect in May 2021.
With no-fault insurance, victims injured in car accidents in British Columbia can only pursue compensation from at-fault drivers in rare circumstances. This scheme is unfair to anyone injured in a motor vehicle accident, leaving them at the mercy of ICBC representatives when pursuing a fair resolution of their claim. Fortunately, challenges to the no-fault law are underway in court.
What is No-Fault Insurance in British Columbia?
Under ICBC’s new no-fault insurance model, any driver injured in a car accident can receive benefits from their injuries and wage loss through ICBC. The only consequence for the at-fault driver may be an increase in their premiums. According to ICBC, the purpose of the no-fault system is to streamline the process of dealing with a car accident and reduce the costs associated with civil litigation.
How Did the No-Fault Laws Change in B.C.?
Before Enhanced Care, accident victims could file a tort claim to pursue full and fair compensation from negligent drivers. Now, victims cannot sue unless the responsible driver is convicted of a criminal offense, such as drunk driving. However, criminal defense lawyers work hard to get those types of traffic violations reduced or dismissed for their clients. When they succeed, injured people are left with no-fault insurance as their only source of compensation. By removing the ability to sue and recover compensation from the at-fault driver, the government has left victims with limited legal recourse and options for justice.
How Do These Changes Affect Car Accident Victims?
In most cases, car accident victims in British Columbia can no longer bring a personal injury claim for losses resulting from a crash. This change applies to car accidents that happened on or after May 1, 2021. The only way that victims can appeal an ICBC decision is to challenge it through an ICBC fairness officer, ombudsperson, or the government-managed Civil Resolution Tribunal (CRT).
Functionally, these changes deprive car accident victims of the same rights extended to victims of other accidents, affecting their ability to recover compensation for the full extent of their lost income and pain and suffering. Furthermore, injured parties cannot sue ICBC if it cuts off or denies benefits to them.
Latest Challenge to the No-Fault Law in BC
Recently, a constitutional challenge has been filed opposing Enhanced Care and its coverage provisions. The plaintiffs allege that collision victims have lost basic protections due to Enhanced Care: the right to just compensation for their injuries and the ability to oppose the positions taken by ICBC when determining their right to recovery in court. It also argues the system is discriminatory to the disabled, preventing them from recovering money to address the full economic impact of a motor vehicle accident on their lives.
My Loved One Died in an Accident. How Does No-Fault Work for Fatal Crashes?
If you lose a family member in a car accident, ICBC pays for grief counseling, funeral and burial expenses, and lump-sum payments to eligible family members and dependents. The amount paid to spouses and common-law partners depends on the age and income of the accident victim.
Enhanced Accident Benefits also pays a lump sum to surviving dependents, including children under 19, children 19 and older who lived with the victim and have a physical or mental disability, dependent parents, and former spouses who receive spousal support. Other family members may be entitled to payments, depending on the circumstances.
Contact a Car Accident Lawyer in Vancouver
If you suffered injuries in an auto accident, you need to know your rights under the no-fault law in B.C. Consult with an experienced car accident lawyer at Warnett Hallen LLP today. Our team of dedicated legal professionals can provide the guidance you need to understand the claims process and whether you have a legal case. Contact us today for a free consultation.
