Article content

VICTORIA — B.C. motorists are about to see a dramatic change to their auto insurance, as well as a 20 per cent cut to their premiums next year, under a no-fault system announced by the B.C. government.

Premier John Horgan unveiled Thursday the largest reforms to auto insurance since the creation of the Insurance Corp. of B.C. more than four decades ago, as his government struggles to stop continuing financial losses at ICBC.

We apologize, but this video has failed to load.

tap here to see other videos from our team. Try refreshing your browser, or B.C. to cut ICBC rates 20 per cent and switch to 'no-fault' insurance Back to video

No-fault insurance means people involved in vehicle crashes can no longer sue for damages — except in cases involving court convictions for offences like negligence, street racing, impaired driving, or in cases of faulty manufacturing, botched repairs and the over-service of alcohol by a business.

Instead, people will receive benefits, payments for medical treatment and compensation directly from ICBC, using amounts set by the province depending on the type of injury.

“It’s time for change at ICBC,” said Horgan. “A 20 per cent decrease in rates in the years ahead is a symbol to the people of British Columbia that we are going to wrestle this problem to the ground.”

The switch will upend B.C.’s litigation-based insurance model, in the process saving ICBC an estimated $2.9 billion in legal fees, pain and suffering and injury claims in 2022. Roughly $1.2 billion of that will be redirected into boosting treatment benefits and quickening response times for claims. The remaining roughly $1.7 billion will go to fund the one-time rate cut of 20 per cent.

“You shouldn’t need a lawyer to access the benefits you’ve paid for,” said Attorney General David Eby. “The current auto insurance system in British Columbia simply doesn’t work.”