Underwriting income is down and claims costs are up, according to 2007 Q1 financial figures posted by the Office of the Superintendent of Financial Institutions (OSFI), which oversees federally regulated property and casualty insurers in Canada.
The OSFI 2007 Q1 figures do not include financial data for many reinsurers or provincially regulated P&C insurers.
Also, the figures quoted herein do not reflect total industry data, because they exclude income statements of foreign P&C insurance companies that file financial statements with OSFI.
Canadian-based P&C insurers captured in the data collectively reported an underwriting income of $164 million in 2007 Q1. That compares with an underwriting income of $395 million reported in 2006 Q1.
Although total underwriting revenue increased from $5.523 billion in 2006 Q1 to $5.625 billion in 2007 Q1, underwriting income fell in part because of higher claims expenses in 2007 Q1.
In 2007 Q1, claims costs were reported at $5.46 billion, whereas during the same period in 2006, they were $5.127 billion.
Also, net investment income in 2007 Q1 trended downwards, according to OSFI figures. In 2007 Q1, Canadian P&C companies captured in the OSFI data reported a net investment income of $643 million in 2007 Q1. In contrast, in 2006 Q1, reported net investment income stood at $838 million.
Canadian carriers scored the lowest in terms of quality of underwriting, policy administration and service when compared with the United States, London and Bermuda carriers in Willis Group’s inaugural Carrier Evaluation Survey.
In terms of claims, Canadians nudged ahead of Bermuda-based carriers for third place.
The results of the programme are based on a survey of 2,500 Willis associates from around the world who were asked to rank carrier groups, on a scale of 1 (lowest) to 10 (highest), against four categories.
Underwriting took into consideration commerciality, coverage and responsiveness; policy administration encompasses timeliness, accuracy and quality of information systems; claims covers attitude, settlement and technical support; and service includes loss control, risk assessment and post placement services.
Canadian firms received a score of 6.82 for underwriting, 6.41 for policy administration, 6.32 for claims, and 6.45 for service.
“The lease positive views were expressed by Willis associates from our Bermuda and Canada offices, who provided some of the lowest scoring results for claims worldwide,” the report noted.
But when compared with the rest of the world, carriers scored on average slightly higher in North America in all categories with the exception of claims.
PPG Canada Inc. has announced a shuffle within its automotive refinish group, with five staff members receiving new appointments. The appointments include: Lee Smith, current director of Refinish Canada, has been promoted to director of strategic growth and acquisition for PPG Automotive Refinish, North America; Brian Roberson, will serve as Smith’s replacement; Denis Cloutier is the new insurance services manager for Eastern Canada; Jennifer Rosiak-Wong, has become Canadian advertising manager; and Bruce Young is district manager of collision programs. In his new position, Smith will be responsible for developing growth strategies for short- and long-term objectives. Roberson will oversee the CertifiedFirst Network for PPG Canada. Cloutier will work with the Canadian insurance industry to communicate the value- added services the network can provide to insurers and their policyholders, throughought Quebec and Atlantic Canada. Rosiak-Wong will assume the responsibility of coordinating and implementing marketing and advertising programs for the automotive refinish division, including public relations, trade show activities and internal communications. As district manager of collision centre programs, Young will manage the company’s value-added programs for the western region (Manitoba to British Columbia), including TPS and Lean Six Sigma training for collision repair facilities, as well as ongoing support for the region’s MVP and CertifiedFirst program members.
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Crawford & Company expands alliance with MJM Investigations
Crawford & Company (Canada) Inc. is expanding their strategic global alliance with MJM Investigations into Canada.
MJM provides investigative products and services to insurance carriers and is Crawford’s preferred provider of both surveillance services and global insurance fraud mitigation and claims services worldwide.
“I am pleased to announce the expansion of our global partnership with MJM Investigations,” Crawford CEO John Sharoun said in a release. “This partnership will continue to support Crawford’s key objectives of quality, customer service and teamwork as our clients gain access to some of the best-trained investigators in the industry. In designating MJM as our preferred provider, we will also be in a position to better serve our clients anywhere across Canada.”
The assets of the Crawford Investigation Services division will be transferred over to MJM and any surveillance handled by MJM on behalf of Crawford will be done under the moniker Crawford Investigation Services, Powered by MJM.
“This partnership with Crawford allows us the opportunity to provide a global insurance investigation service to the industry, with the best trained investigators,” Michael J. Malone, founder and CEO of MJM, said. “The strength of Crawford’s Investigation Services brand and global relationships, coupled with MJM’s core investigative services and commitment to fighting insurance fraud, will assist our clients in the domestic and international marketplace.”
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IBC president and CEO announces retirement
After serving the Canadian property and casualty insurance industry for 32 years, Stanley I. Griffin, president and CEO of the Insurance Bureau of Canada (IBC), has announced he will retire at the end of this year.
Griffin joined the IBC in 1975, ultimately reaching the position of president and CEO in 2002, says an IBC release.
“IBC achievements under Stan’s guidance include unprecendented auto insurance reform in six provinces and a very significant improvement in consumer confidence in the industry following a very difficult hard market,” IBC chair Mike Donoghue, president and CEO of Allstate Insurance Company of Canada, said in a statement.
Griffin helped to guide the IBC through its mandate renewal process and the development and current implementation of Standards of Sound Marketplace Practice.
“Mr. Griffin was also the first vice president of the Ontario region, where he spearheaded many negotiations with successive governments in the province, resulting in substantial changes to Ontario’s auto insurance law,” the statement adds.
Replacing him will be Mark Yakabuski, currently the vice president, Ontario and federal affairs, IBC.
“I am very pleased that IBC’s board of directors has unanimously approved the recommendation that Mark succeed me as president and CEO,” Griffin said in a statement.
“I know that Mark will bring to his new role his passion, enthusiasm and commitment to IBC and our industry.”
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Kernaghan Adjuster’s Toronto Office has New Executive Adjuster
Mike Lowthlan has joined Kernaghan Adjusters’ Toronto office as an executive adjuster.
“Mike’s illustrious career has spanned over three decades, during which time he has earned a well-deserved reputation as a respected executive adjuster in the Ontario market,” Patti Kernaghan, president and CEO, said in a release. “Mike is well-known for his excellent judgment and thorough investigative ability.”
Recently, Lowthlan has been working with complex casualty loses, including commercial liability, products liability and professional E&O.
“His proven technical knowledge, plus sound interpersonal and communication skills, make him an important asset to the continuing growth of our Toronto team and the company across Canada,” Kernaghan added.
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Crawford launches Canadian commercial auto services branch
Crawford & Company (Canada) Inc. has announced the creation of a commercial auto services branch, which will oversee programs in the commercial auto sector.
Working with Crawford’s global branch network, this new team will manage programs within the commercial auto sector, such as car and truck rentals, taxis, couriers and commercial fleets.
CEO John Sharoun notes in a release that those in the new branch have widespread experience working with commercial auto claims all across the country, including bodily injury, accident claims and property damage.
“Clients today are looking for innovative approaches to claims management,” Sharoun, said in a press release. “This new branch will give us the opportunity to respond to our clients’ needs and grow our commercial auto services across Canada.”
The company has announced the appointment of Brian Hambly as the manager of the new commercial auto services branch.
Hambly has been with Crawford since 1995, after graduating from Brock University with a Bachelor of Arts. He is a Chartered Insurance Professional (CIP), handling all lines of claims, with a specialty in commercial auto and CGL claims.
He has been a control adjuster for a number of car rental accounts while at Crawford & Company (Canada) Inc.
The new branch will operate out of the company’s Toronto West branch.
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More than 70 CARSTAR Collision Repair Centres across Canada participated in the fourth annual CARSTAR “Soaps it Up” for Cystic Fibrosis (CF) National Car Wash Day raising mor than $65,000 for the Canadian Cystic Fibrosis Foundation.
“This year’s ‘Soaps it Up’ fundraising campaign has been the best yet,” Sam Mercanti, president and CEO CARSTAR Automotive Canada, said in a release. “Our franchisees and partners as well as the CCFF Chapter volunteers and the volunteers from local fundraising groups across the country continue to wow us with the effort they put in to making this event such a great success. We are very thankful to everyone for all of their hard work and support.”
CARSTAR volunteers, community groups and local chapters of the CCFF helped ‘soap up’ over 5,000 vehicles during the event, which took place on Father’s Day weekend. A major focus of this year’s campaign was recognizing dads and especially the dedicated dads who care for children with CF.
CARSTAR has been a dedicated supporter of the Canadian Cystic Fibrosis Foundation for several years, after it was discovered that the granddaughter of a CARSTAR franchis
ee was diagnosed with cystic fibrosis. To date, CARSTAR Collision Repair Centres have helped raise over $1.5 million to help find a cure for cystic fibrosis. Visit www.ccff.ca for more information on CF.
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Crawford Appoints Two New Staff Members
Craig Duncan has been appointed manager of Crawford’s newly created Regional Claims Centre in Ontario.
Reporting to Greg Smith, vice president, national programs, Duncan will work with the Regional Claim Centre project team in establishing Crawford’s first location in Mississauga, Ont.
“The Regional Claims Centre introduces a new concept in client-focused claims service,” Crawford & Company (Canada) Inc. CEO John Sharoun said in a press release. “Craig will play a leading role in assembling and orienting a new staff group, implementing innovative claims handling processes, and developing a branch culture focused on quality, service, and teamwork.”
Duncan joined Crawford in 1990 in the Toronto branch and has been the manager of Crawford’s Mississauga and Oakville branches since August 2003.
Evan Miles has been appointed branch manager of Crawford’s Vancouver branch, effective immediately.
“Evan’s dedication to customer service, and his track record in both claims investigation and claims management provide a great starting point for success in this new role,” Jim Eso, Crawford vice president, operations, British Columbia, said in a press release. “He has certainly demonstrated these qualities throughout his time with Crawford and most recently as assistant manager of operations for British Columbia.”
Miles joined Crawford in August 2000 after nine years in the insurance industry, working in both the company and independent adjusting areas. His early career included extensive experience in fire services for the City of Fort McMurray and as a fire and arson investigator for the City of Edmonton.
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Aon Reed Stenhouse Inc. Appoints Christine Lithgow
Aon Reed Stenhouse Inc. has announced the appointment of Christine Lithgow as executive vice president, national client service, market relations for Aon Reed Stenhouse and as a member of the national executive committee.
Lithgow began her career at Reed Stenhouse in the United Kingdom as an account executive trainee, when in 1981 she moved to Edmonton, where she held various positions in the company including broker, casualty manager, marketing manager, director of operations, regional broking manager and Edmonton branch manager, says an Aon release.
In 1995 she was appointed vice president, and to senior vice president in 1998.
She was also part of the Alberta Regional Executive Committee and serves on the Canadian National Service Board.
“Christine brings clear vision, strong and dynamic broking strength, and a true collaborative approach to meeting the needs of our clients,” says the company statement.
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CNA Appoints Vice President, Marine Manager for Canada
Greg Knowles has been appointed to vice president, marine manager for Canada at CNA. In addition to leading the marine book of business, Knowles will be responsible for developing, supporting and executing new initiatives including construction and HealthPro. He has been with the company since 1998, when he began as an underwriting manager in the Calgary branch.
Michael O’Connor is now the branch manager in Montreal. He joined CNA in 2004 as a senior underwriter. His appointment is a reflection of the strong contribution he makes to CNA, the company said in a release.
Knowles and O’Connor will both assume their new roles effective July 2.
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CIAA New Members
INDIVIDUAL MEMBERSHIP
HBA Adjusters Ltd.
Christopher TrollopeCalgary, ABStudent
Mark R. Van Der Wee, CIPCalgary, ABInvestigator
E.R. Jones General Insurance Adjusters Ltd.
Amanda HenitsThunder Bay, ONStudent
Marsh Adjustment Bureau Limited
Michael WardKentville, NSStudent
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The CIAA Pacific Region Executive meeting and Annual CIAA/CICMA Joint Luncheon held on Apr. 4, 2007 at the Terminal City Club, Vancouver.
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The XL Insurance companies hosted a cocktail and hors d’oeuvres reception on May 23, 2007 in the breathtaking setting of the University of Toronto’s Hart House. Along with XL staff, over 200 of XL’s business partners and clients enjoyed the evening within the walls of Hart House — considered on of Toronto’s architectural masterpieces, with its soaring stained glass windows, marble floors and oak timbered ceilings.
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WICC Ontario Chapter, teed up for its 8th Annual golf tournament at Angus Glen Golf Club — just one week before the club hosted the Canadian Open, to raise funds for research and education in the fight against cancer.
Everyone came out a winner, with a cheque for $200,000 being presented to Peter Goodhand, president of the Canadian Cancer Society, Ontario Division. A barbeque lunch, fine dinner, draw prizes, and two silent auctions also tantalized guests throughout the event.
A very hearty thank-you went out to all golfer participants, tournament sponsors, hole sponsors, hole-in-one sponsors, prize and auction item donors, the many outstanding volunteers, WICC Corporate Sponsors, as a special congratulations to golf Organizing Committee chair Heather Matthews (Crawford & Company [Canada] Inc.) and her dedicated Organizing Committee: Karen Barkley (ACE INA Insurance); Ashley Chinner (Simmlands Insurance Brokers Ltd.); Dororthy Davenport (Zurich Insurance); Karen Forsey (Pinnacle Adjusters Group Inc.); Elizabeth Kepes (The Personal Insurance Company); Hoa La (Able Translations Ltd.); Christina Martin (KRG Insurance Group); Dawna Matton (Insurance Institute of Canada); and Jennifer Mullet (The Co-operators).
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CIAA Ontario Region’s Annual General Meeting and Convention, Jun. 14 – 16, 2007 at the Delta Pinestone Resort, Haliburton, Ont.
The Members of the 2007 – 2008 CIAA Ontario Region executive (group photo, left) are as follows:
Seated L – R: Teri Mitchell, 2nd vice president; John Seyler, president; Mary Charman, immediate past president; Richard Swierczynski, 1st vice president.
Standing L – R: Wendy Lebskin, education; Judy Smith, central region director/catastrophe; Fred Silvestri, advisory; Peter Maurer, Western region director; Steve Del Greco, secretary; Dorothy Lowry, convention/sick & vigil; Joan Jones, CICMA/CIAA Joint Conference.
Absent: Joel McQuilkin, treasurer; David Marshall, Northern region director; Edgar Lethbridge, licensing; Chrissy Atley, membership; Dan Spencer, editorial.
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CIAA Ontario Region would like to recognize the Conference Sponsors for their support:
1) Custom Rehab & Assessment Canada 2) Palings 3) First General Huronia 4) Strone Construction 5) Total Cleaning & Restoration Bracebridge 6) First General Muskoka 7) ServiceMaster Midland 8) Sibley & Associates 9) CGI Adjusters Inc. 10) WINMAR Canada 11) ServiceMaster Aurora/Newmarket 12) The WRI Group 13) Focus Assessments
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CIAA Nova Scotia Region hosted a seminar on Jun. 28, 2007. Barry Mason, trial lawyer at Presse Mason Law Office gave a very informative presentation on his client’s application to overturn the Injury CAP in Nova Scotia. In the picture is Jane Richardson, CIAA Nova Scotia Region President and Barry Mason.
The Financial Services Commission of Ontario (FSCO) is releasing a revised Pre-approved Framework (PAF) Guideline for Grade I and II Whiplash Associated Disorders and accompanying Pre-approved Framework Extension Request and Discharge Report form (OCF-24/198).
The new PAF Guideline is effective Oct. 1, 2007.
Changes in the revised PAF Guideline include:
* focus on returning the insured person to his/her pre-accident functions;
* inclusion of both “discretionary” and “recommended” interventions;
* permitting treatment to begin at any time post-accident,
* addition of a new on-site review and intervention to replace the
old Activities of Daily Life Intervention (ANLI); and
* merging the fees for treatment of WAD I and II injuries.
The new PAF Guideline will apply to all new Pre-approved Framework Treatment Confirmation Forms (OCF-23) that are submitted by a health practitioner on or after Oct. 1, 2007, or when the insurer has waived the requirement for an OCF-23 on or after Oct. 1, 2007.
The previous WAD I and WAD II Guidelines remain in effect for OCF-23 forms that are submitted by a health practitioner before Oct. 1, 2007, or when the insurer has waived the requirement for an OCF-23 before Oct. 1, 2007.
Also, FSCO announced a new regulation to define livery vehicles.
Effective March 2006, the Budget Measures Act, 2005 (No.2) introduced a third-party liability cap that applies to owners of rental or leased vehicles under the Insurance Act. The cap does not apply to public passenger vehicles such as taxis, limousines for hire or “livery vehicles.” The new regulation is intended to define and clarify the meaning of a livery vehicle.
The rapid increase of insider-related security breaches and of stolen computer equipment and data storage devices has unnerved the Canadian business community, creating a greater demand for data loss liability coverage products, says Aon Financial Services Group Canadian Advisory.
“Under lock and key: risk transfer solutions to limit liability for security and privacy data breaches” explains that while commercial general liability (CGL) policies may appear to provide some coverage for third-party losses, some U.S. courts have recently ruled that data is not considered tangible property under certain CGL policies and, as a result, have excluded coverage.
While most litigious activity involving data security breaches is initiated in the U.S., Canadians are catching on quickly, the report warns.
“Class action lawsuits have been filed against Winners and HomeSense in six provinces for damages arising out of the TJX security breach,” the report says. “The costs in connection with the potential liability to third parties for privacy and data breaches due to corporate negligence, is a growing concern.”
As a result, a number of insurance carriers have developed specific privacy and data loss liability coverage products that provide coverage for businesses when data in their care and control is compromised, Brian Rosenbaum, Aon Financial services group, legal practice, wrote in the report.
A 62-year-old orthopedic surgeon in Windsor, Ont. has been awarded $844,450 in damages–including $714,000 based on a presumed future loss of income between the ages of 65 and 70– or injuries he sustained after being thrown from his bicycle when he ran over a raised catch basin.
Dr. Robert Yovanovich, 56 at the time of his injuries, was cycling along Prince Road in Windsor. The road had previously been closed to traffic, but was now open and free of any barricades and detour signs.
During his cycling trip, Yovanovich rode without incident over two catch basins that were flush to the road. However, he was forced to drive over a third, raised catch basin when he was passed by a dump truck. He was thrown into the air after riding over the elevated catch basin.
The surgeon, according to Ontario Superior Court Justice, suffered cuts and bruises, a separated left shoulder, mild nerve compression in the neck, right side sciatic numbness and a burning sensation in the right leg due to a compression injury in a nerve. While some of the injuries have healed, the surgeon still experiences various problems, including a shoulder deformity and varying levels of pain, which affects his work.
The judge awarded Yovanovich $100,000 in non-pecuniary damages “as solace for pain and suffering and loss of enjoyment of life.”
In addition, citing the Supreme Court of Canada decision in Andrews v. Grand & Toy in Alberta — in which Canada’s top court said estimating future loss of income is similar to gazing into a “crystal ball” — the Ontario Superior Court Justice awarded an additional $714,000 for a presumed loss of future income.
Ontario Superior Court Justice Johanne Morisette declined to award damages for loss of future income up until the surgeon reached the age of 65.
“I conclude that the plaintiff will continue working at his current level until he turns 65,” she wrote. “Thus, there is no future loss of income from the date of trial until the plaintiff reaches the age of 65.”
However, at the age of 65, the judge concluded, “there is a significant or substantial possibility that the plaintiff will begin to reduce the number of surgeries because of increased pain. Over the five-year period beginning at age 65, I conclude that the annual surgery and office consultation income will decline by 50% of 2005 OHIP income (2005 OHIP income was $317,807 per Exhibit 35).”
Storms and flash floods in Alberta on June 5 are expected to exceed $42 million in insured damages, according to the Insurance Bureau of Canada (IBC).
“In Calgary alone, there have been 3,094 insurance claims so far as a result of the storms, and insurers expect to pay $42 million to cover these claims,” Jim Rivait, IBC vice-President, Prairies, NWT and Nunavut, said. “When including claims from Edmonton, the numbers rise to 3,447 claims and an expected $48 million in payouts.”The insured damage has been mostly sewer back-up in homes, and some auto claims.”
In a press release, IBC urged homeowners to be patient during the claims process. “The booming economy in Alberta has resulted in a labour shortage, which impacts residents particularly in times like this as it can be difficult to find contractors,” Rivait said.
“The provincial government has now officially declared the storm a disaster. The industry will be working closely with Alberta Disaster Services and we expect that everyone with insured or uninsurable losses will be taken care of.”
The IBC is reminding residents that damage caused by overland flooding and seepage cannot be covered by home insurance. “Generally, overland flooding is only a risk for the small percentage of the population who live in a flood plain and, since the purpose of insurance is to spread risk amongst many policyholders, flood insurance for those at risk would be unaffordable,” the IBC noted.
There is a 75% chance the 2007 hurricane season will be above normal, according to the NOAA [National Oceanic & Atmospheric Administration].
An average season is one in which there are 11 storms, six of which become hurricanes and two of which become major [Category 3-5] hurricanes.
“For the 2007 Atlantic hurricane season, scientists predict 13 to 17 named storms, with seven to 10 becoming hurricanes,” said NOAA administrator Conrad C. Lautenbacher, a retired Navy vice admiral and undersecretary of commerce for oceans and atmosphere. Of these hurricanes, Lautenbacher said, “three to five could become major hurricanes of Category 3 strength or higher.”
According to the NOAA, the “on-going multi-decadal signal [which describes the set of ocean and atmospheric conditions that spawn increased hurricane activity], warmer-than-normal sea surface temperatures in the Atlantic Ocean and the El Nio/ La Nia cycle,” are all factors increasing the severity of the 2007 hurricane season.
The severity of the season is largely based on whether El Nia forms, the NOAA notes. If it does form, its strength will play a factor in whether storm activity will be in the upper end (or beyond the upper end) of the predicted range.
Even if El Nia doesn’t form, it is expected that we will still see a higher than normal season this year, the NOAA predicts.
“With expectations for an active season, it is critically important that people who live in East and Gulf Coastal areas as well as the Caribbean be prepared,” Bill Proenza, NOAA National Hurricane Center director, said. “Now is the time to update your hurricane plan, not when the storm is bearing down on you.”
The Colorado State University’s Department of Atmospheric Sciences, also found that the 2007 hurricane season is likely going to be “very active,” with landfall probabilities well above their long-period averages.
This is largely due to the rapid dissipation of El Nio conditions, according to researchers at the University.
The researchers say the probability of at least one major (Category 3-5) hurricane reaching landfall on the U.S. coastline is 74%, compared to an average of 52% for the last century.
“We estimate that 2007 will have about nine hurricanes (average is 5.9), 17 named storms (average is 9.6), 85 named storm days (average is 49.1), 40 hurricane days (average is 24.5), five intense (Category 3-5) hurricanes (average is 2.3) and 11 intense hurricane days (average is 5),” Dr. William Gray writes.
Researchers are hesitating to link the potentially active season to global warming or climate change, explaining that Atlantic hurricanes go through “multi-decadal cycles.”
“This active cycle is expected to continue for another decade or two, at which time we should enter a quieter Atlantic major hurricane period like we experienced during the quarter century periods of 1970-1994 and 1901-1925,” Gray predicts.
The Supreme Court of British Columbia recently awarded a widow $6.4 million, $4.2 million of which was for the potential loss of support due to her husband’s death in a 2002 car accident.
In July, 2002 Barry Carter was driving a van owned by his employer, a cable company, when he went into hypoglycaemic shock and lost consciousness, veered into oncoming traffic and struck the vehicle that Dr. Donald Johnson, a laser eye surgeon, was a passenger in.
Johnson died as a result of the collision.
Justice Harry Slade awarded Johnson’s widow $4.2 million for future losses, including pre-retirement family consumption and savings.
While the court heard that Johnson experienced financial issues prior to his death, Justice Slade was convinced that he would not only have bounced back, but likely expanded his business as a successful laser eye surgeon.
“An increase in Dr. Johnson’s time expended in surgery that would yield a substantial increase in income was a strong possibility, more at the level of probability,” Justice Slade wrote in his decision.
“There was also a realistic potential for earning business income based on an ownership interest.”
While Johnson did not have any shares in the company that owned and operated the clinic in which he worked at the time of his death, Justice Slade decided that was likely due to potential difficulty with his creditors, but that would have likely changed.
“There is no evidence of any established plan to develop and take an ownership interest in any clinics,” he wrote.
“There is, however, evidence that would support a finding of a realistic possibility that Dr. Johnson would, at some future time, have sought to capitalize on his reputation and experience by methods other than the personal provision of surgical services.”
A recent B.C. Supreme Court jury decision in Rallahan v. Siu and Litt reinforces the need for claimants to provide complete and accurate information when making a claim with auto insurers.
The court ruled Balwinder Singh Rallahan failed to provide medical history to the Insurance Corporation of British Columbia (ICBC) when filing a claim.
“It’s vital that claimants understand that failing to accurately inform their doctors and ICBC about their medical history can affect their credibility in the eyes of the court,” Joseph P. Cahan, lawyer for Alexander, Holburn, Beaudin & Lang representing ICBC, said in a press release.
Rallahan, a taxi cab driver, was working when he was involved in accidents in both 2001 and 2002. He filed a claim and had his car repaired and received medical benefits. In addition, he claimed $200,000 in lost wages and a further $50,000 for pain and suffering.
However, it became apparent during the trial that he had failed to provide information surrounding a previous related injury.
Because of this, he received only $1,000 for the first accident and nothing for the second. Since the jury awarded less than what the ICBC previously offered, Rallahan may be required to pay ICBC’s court costs.
“ICBC needs its customers to provide complete and accurate information in a timely fashion when making a claim,” Sue Carle, ICBC vice-president, claims services, said. “Without the complete picture, ICBC cannot accurately assess the claim and provide fair compensation to the claimant. Paying too much for claim settlements is unfair to all ICBC customers who pay premiums, but paying too little is unfair to claimants.”
