The new head of ICBC told an audience of Maple Ridge business people the no-fault system is keeping premium costs down for consumers.
Jason McDaniel, the president and CEO of ICBC, was the main speaker at the Ridge Meadows Chamber of Commerce Leadership Luncheon on Feb. 18. He asserts ICBC needs to better communicate how successful the new no-fault system – dubbed Enhanced Care by the insurer – has been.
A lawyer, McDaniel has held various roles with ICBC over almost 20 years, and was confirmed as president and CEO last month.
He asserts the Enhanced Care model has saved drivers money – an average of $480 per policy – since it began in May 2021. There have been five rebates, with the last three being $110 each, and rates have been frozen.
“We moved from a world where the primary product we used to sell was protecting you from being sued by others,” he explained. “And now the main thing you’re purchasing – the main product we sell when you buy your ICBC insurance – is entitlement to care and benefits for you, your family, anyone in your car, if something bad happens to you on the road.”
“We’re really proud to say we’re going to go seven straight years without an increase in our basic insurance rates. And on top of that, we gave over $640 in rebates over that time.”
He said the question of whether the new system is more affordable than “that old lawsuit-based system we had,” is now “case closed.”
McDaniel doesn’t like calling it “no-fault” insurance, because the term implies there are no consequences for causing collisions.
“If you’re the kind of driver that causes collisions, we will unapologetically jack up your insurance rates every single year, just like we used to,” he told the crowd.
He said 96 per cent of claim payments go to directly to benefit clients.
“In the old model, in the lawsuit-based model, it was not uncommon for one-third of every cheque to end up going to a lawyer,” he said.
Critics say the new system doesn’t allow those who suffer catastrophic injuries to sue for pain and suffering. Victims can only sue if the at-fault driver is convicted of a Criminal Code offence, such as impaired driving.
Lawyers have described the no-fault system as “WCB on wheels.”
Fairview Strategy did a poll in 2024 for the Trial Lawyers Association of B.C. reporting 77 per cent of respondents said those injured should be able to sue the at-fault driver.
There have been stories in the media about people suffering permanent injuries who received nothing, and those unhappy with the amount of settlements for losing a loved one killed in a crash.
The new CEO countered that most critics have a misconception about the previous system, and the size of settlements.
“The starting premise is they got a ton in that old system – it just isn’t true,” he said.
Fatalities where there were no dependents didn’t pay a lot, he said. In the new system payments come promptly.
Lawyers critical of no-fault don’t mention that the amount of insurance held by the person causing an accident effectively caps the maximum claim, he explained.
“If they had a million dollars in coverage, and your lawyer takes a third, the most you’re getting is $666,000, regardless of what the claim is worth in theory,” he said.
He said the new system will pay out a lot for catastrophic claims for victims.
Last week in Terrace he met a woman who hit ice, flipped her car, and became a quadriplegic. She spent 18 months in Vancouver receiving care, and ICBC provided a place for her family to stay with her. It also paid for an extension to her parents’ home that is wheelchair accessible.
“For the most catastrophically injured people, this system stands up really well for what we’re able to provide people vs. the old lawsuit-based system.”
McDaniel doesn’t offer statistics, but believes no-fault also reduces fraud.
“The system is not about a cheque, the system is about providing care and benefits on an ongoing basis,” he explained. “You’re less incentivized to inflate a claim – you would have to live it your whole life to inflate the claim.”
The Enhanced Care system is due for a five-year review in 2026.