The Insurance Corporation of British Columbia, ICBC, is required to release financial statements to lawyers and the general public which includes the amount they pay to injury claimants for out of court settlements. ICBC forecasts net income of $230 million in 2013 and $229 million in 2014, a total of $459 million after paying innocent victims injured in auto accidents.
The costs incurred by ICBC for bodily injury claims is less than half of the annual revenue and from that amount only a small fraction is ultimately paid out as settlement of personal injury cases. Payments to injury claimants for settlement of claims for pain and suffering do not appear to be keeping up with inflation and courts appear to be loath the apply the consumer price index specifically to pain and suffering awards. Personal injury lawyers need to advocate for application of the CPI to past awards in personal injury settlements.
Paying out settlements in personal injury claims is a small cost and ICBC continues to post large profits from its business of auto insurance. Many British Colombians are also not aware that ICBC transfers a large amount of their profits to the Government every year and ICBC does not pay Provincial tax.
Posted by Personal Injury Lawyer Mr. Renn A. Holness, B.A. LL.B.