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ICBC Ordered to Pay $400,000 for False Fraud Accusations

lCBC Punished

ICBC’s conduct in this case was so high-handed, reprehensible and malicious that it offended the Court’s sense of decency. The conduct of ICBC was high on the scale of blameworthiness. The defendant ICBC is a public insurance company. As an insurance company it is expected to act in good faith. As a public company, its employees are also expected to meet high standards of professional conduct.

One of ICBC’s key purposes and reasons for existence is to serve the residents of British Columbia, by providing compensation when someone is injured in a motor vehicle accident. The corporation does not serve the residents of this province when it uses tactics of intimidation to discourage civil claims.(para 383 of Arsenovski v. Bodin, 2016 BCSC 359).

The ICBC investigator  focused on the claimant as  being “recent immigrants” who had just applied for “refugee status” and the fact that they were on “social assistance”. He contacted someone at Canada Immigration and “passed the information on” regarding  “medical fraud”, and advised that the claimant was  under investigation for “insurance fraud”.

This fraud claim was ultimately found to be bogus and ICBC was punished with a $350,000 punitive damage award. The judge did not mince words,

[393] Given ICBC’s role as motor vehicle insurer for a majority of drivers in British Columbia, there is a need to ensure deterrence of behaviour of this sort on its part. It cannot be said that an award of punitive damages will cause it financial hardship. An award that is too small could be seen as simply the cost of doing business. ICBC stood to gain an advantage from its conduct.

The judge found that the claimant would likely not have had any prior experience or knowledge of the Canadian legal system or of British Columbia’s no-fault accident insurance system. She would not have known how in the future she would be treated, given that she was flagged by the state as a possible criminal. Given her vulnerability, the malicious prosecution have ICBC would have damaged her, “personal sense of security, a critically important and invaluable aspect of life in Canada.”

 More posts to come on this case in the following weeks!

Posted by Personal Injury Lawyer Mr. Renn A. Holness, B.A. LL.B.

Tags: aggravated damages, ICBC, icbc case examples, ICBC Lawyers, Malicious Prosecution, punitive damages

2 responses to ICBC Ordered to Pay $400,000 for False Fraud Accusations

  • The Rise of False Fraud Claims by ICBC Against Innocent Injury Victims | Holness Law Group

    March 24, 2017 5:21am

    […] To explain the recent financial crisis at ICBC, the auto insurance corporation has alleged an “increase in fraud” with no statistical or factual basis. This is now resulting in innocent victims being denied accident benefits in what some refer to an abuse of power by ICBC.  Case in point, ICBC was recently Ordered to Pay $400,000 for False Fraud Accusations (Click here to read more about ICBC’s false allegations against innocent victims). […]

  • ICBC Adjuster Got Pleasure Causing Difficulty for Injury Claimant | Holness Law Group

    March 4, 2016 5:07am

    […] government of BC may be preparing to back ICBC in an appeal of a $350,000 award against ICBC for malicious prosecution. Transportation Minister Todd Stone indicated that ICBC may be considering an […]

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"Renn A. Holness is a gifted lawyer and author to over 1000 legal blog articles. Married father of two daughters, son of a neurosurgeon and founder of Holness Law Group."

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