The Truth About Rising ICBC Rates

This editorial is strictly the opinion of the author, Dr. Lee Cowley, and is not to be interpreted as reflecting the opinion of any of the other partners, associate lawyers or employees of Cowley & Company, the Trial Lawyers Association of British Columbia and/or the Law Society of British Columbia.

I.C.B.C. has once again applied to the Utilities Commission for a significant hike in its rates. The public is naturally upset. The I.C.B.C. spin doctors have been very active in the media, blaming the need for an increase in rates on “greedy injured people”. There has been a measured response from the Trial Lawyers Association of British Columbia which has largely been lost in all the hoopla.

When we get away from all the rhetoric and look at the facts, a story emerges that is very different than the story that I.C.B.C. is trying to sell to the public. The incontrovertible facts are that:
( 1 ) In the last three years, significantly more people are choosing to hire lawyers than to deal with I.C.B.C. themselves.
( 2 ) In those same three years, there are more trials for I.C.B.C. cases than before this period.
( 3 ) Judges are awarding injured people more money than what was awarded previously with trial awards being typically several times the amount these injured people were offered by I.C.B.C. adjustors.

These are not allegations or conjectures. They are solid hard facts that the I.C.B.C. spin doctors cannot deny. Then, what is going on?
It’s quite simple. About three years ago, I.C.B.C. elected to make a dramatic shift in how it deals with injured people. It went from a culture of corroboration, negotiation and reasonable attempts to settle disputes to a culture of intimidation, aggression, distrust, highhanded tactics and coercion. I.C.B.C. investigators follow injured people around with video cameras. They peer over fences and talk to neighbors. They call their doctors and therapists. They have technical specialists who hack through filters on social networking sites like Facebook to gather photographs. They even stand outside the places of employment of injured people to try to talk to their co-workers. Anything and everything to gather as much dirt as possible to use as a weapon to disentitle or minimize the claims of injured people.

I.C.B.C. used to mediate most of their files. It worked. Injured people liked the process. It allowed them to meet the I.C.B.C. adjustor, put a human face to an insurance company and participate in the process. Suddenly, I.C.B.C. refused to mediate. That practice of avoiding mediation continues to this day. Now, I.C.B.C. slaps down unreasonably low formal offers, forcing injured people to either fall to their knees and accept what is a fraction of their entitlement or accept the challenge and go to trial. And, then, when they go to trial and succeed, they are described by the I.C.B.C. propagandists as “greedy”. How fair is that?

Let me give you a real life example from one of our recent files. “Ms. L.” was injured in a car accident two years ago. She suffered injuries to her neck and back which are much better now. I.C.B.C. made an offer that would have put $12,000 in her pocket. They said that the offer was “fair and reasonable.” She could have caved in, like a lot of other injured folks but she is made of stronger stuff. She went to trial in September. The Judge clearly did not agree with I.C.B.C.’s definition of “fair and reasonable.” The Judge’s decision put $30,000 in her pocket. Not bad for two days in Court.

In short, I.C.B.C. has declared war on people injured in car accidents in British Columbia. And the people of British Columbia need to take up the challenge. Tell your family and friends the real reasons for the hike in rates.

At Cowley & Company, we always appreciate the referrals of your family members and friends/