The Ministry of the Attorney General announced today that
effective May 1, 2021, British Columbia's motor vehicle
insurance system will change to a "care-based" model,
more commonly known as "no-fault insurance." Amendments
will also be made to the province's Evidence Act.
These changes come in the wake of the Province's attempts to
address the increasing cost of motor vehicle litigation through a
minor injury cap and
limits on the use of expert reports in motor vehicle and other personal injury
litigation.
In deciding to move to a no-fault system, the government is
taking aim at lawyers and legal costs, saying that by removing
"the majority of legal fees and other costs associated with
the current litigation-based system," ICBC will save $1.5
billion in the new system's first calendar year. The Province
says these savings will be passed on to ICBC customers in the form
of reduced premiums and increased benefits. They anticipate a 20%
reduction in premiums and say
