Personal injury plaintiffs’ dissatisfaction with the Insurance Commission of British Columbia is mounting.

In previous articles over the years, we have reported on many problems with this insurer. Several constitutional challenges have been levelled:

  • In 2021 the Chief Justice of the Supreme Court of British Columbia struck down key provisions of the Civil Resolution Tribunal Act. This was the second time in 18 months that the government’s ICBC reforms were found unconstitutional. Justice Christopher Hinkson ruled that the provincial government could not refer accident claims worth less than $50,000 to the CRT rather than to the courts.
  • The Trial Lawyers Association of British Columbia (TLABC)has argued that Enhanced Care rules are unconstitutional and contrary to the Charter of Rights and Freedoms. They claim that BC MVA victims lost two basic protections: “the right to full and fair compensation for their injuries” and the “ability to go to a court of law to oppose the positions taken by ICBC.” In addition, people left mentally or physically disabled after a motor vehicle accident (MVA) are denied “legal recognition of their pain and suffering,” contrary to section 15 of the charter.
  • In July 2022, the BC Supreme Court struck down as unconstitutional the provincial government’s cap on the costs that successful plaintiffs can recover for experts in personal injury suits. Justice Nathan Smith ruled that the regulation “compromises and dilutes the role of the court, and encroaches upon a core area of the court’s jurisdiction to control its process.”

In November 2022, the Insurance Bureau of Canada (IBC) reported that BC’s no-fault regime led to a “dramatic reduction” in recovery benefits. ICBC’s year-end financials showed the switch to a pure no-fault system allowed a reduction of funds to accident victims of 30%. But it was also noted that the number of collisions during the same period increased 15% from 2020to 2021.

Many media reports in recent years have profiled disgruntled BC MVA victims who feel ICBC is providing insufficient service or benefits. ICBC is currently facing criticism from a 74-year-old business owner who says its no-fault system is failing to provide customers with adequate support. Yoshihiro Yanagitani was involved in a motorcycle crash in May 2022, resulting in several injuries, including fractures in his shoulder, hip, knees, and ankle. Since the accident, Yanagitani said he had been unable to go back to work and was forced to close his auto repair shop. Yanagitani said he sought help from ICBC shortly after the accident, but the insurer did not respond until he hired lawyer Ryan Kusuhara a month later. Mr. Kusuhara said his client was not able receive income replacement benefit and permanent impairment benefit until he stepped in.Mr. Kusuhara indicated that they are contemplating taking the matter to the BC Supreme Court to challenge existing policies.