If you were solely at fault in your accident, settling your claim basically means being reimbursed for accident-related expenses that should be covered as a Part 7 (no-fault) accident benefit; getting wage-loss or homemaker benefits you’re entitled to under Part 7’s but haven’t received yet; and buying out your right to future accident benefits you’ll need over time. Your future entitlement to Part 7 benefits will be discounted to a present-dollar value when you cash them out to settle your claim.

Your adjuster’s Part 7 buyout offer will be based on his estimate of how long, and to what degree, you’ll continue to need medical-rehab treatment or may be unable to work. If you have serious injuries with on-going consequences, you may want to keep your Part 7’s open or hire an economist to calculate what a fair buyout amount is. You and your adjuster will need to agree on what your future care needs are, what reasonable treatment costs are, whether (and for how long) you may be out of work, and how much money is left in your Part 7 account. You can get a copy of your Part 7 payment schedule through ICBC’s freedom of information unit. Check this over carefully - mistakes often happen.

It’s important not to settle your claim until you’ve fully recovered or you know what future health problems you might have. Until you and your adjuster agree on this, you won’t be able to negotiate a fair Part 7 buyout amount to settle your claim. If you’re not satisfied with your adjuster’s settlement offer or his buyout offer, talk to a lawyer about this. You may want to hire a lawyer to take over the negotiations with your adjuster.

If you weren’t solely at fault, a variety of factors will influence what you’re offered as a settlement: the nature and extent of your injuries; whether liability is in dispute; whether you’re entitled to compensation (or damages); what percentage you were at fault (if any); and whether you’ve hired a lawyer.

Assuming you don’t have a lawyer, you’ll normally be asked to meet with your adjuster once he’s able to estimate how much longer you’ll be out of work (if at all) and how long you’re likely to have accident-related problems (if at all). You’ll review your medical records together to make sure you agree on the nature of your injuries, where you are in your recovery process, and the probable outcome. You’ll also have to agree on liability (or fault) and whether you’re entitled to damages.

What someone with similar injuries received as a settlement has little connection to how much money you’ll be offered. In making you a settlement offer, your adjuster will take into account how credible a witness he feels you’d be in court if your case goes to trial. Since the courts tend to side with ICBC in subjective injury claims and Low Velocity Impact accidents, this will be taken into account as well, when relevant.

Your adjuster will place a monetary value on your pain and suffering. (You may be told about similar cases where the court awarded claimants less than this amount, but these cases will be at the low end of the accepted range.) Your adjuster will then place a monetary value on other ‘Heads of Damages’ (see below) you’re entitled to, and suggest what he feels is an appropriate settlement amount. Make sure you know whether this includes a Part 7 buyout.

While most settlement offers are negotiable to some degree, your final settlement will be expected to fall within the general range of what you’re offered. An adjuster has limits on how much he can offer you. He can’t increase his offer beyond this limit unless the bodily injury claims department accepts that your situation has changed dramatically, making your claim worth much more than originally estimated. If you and your adjuster are far apart on what you feel your claim is worth, you’ll probably have to hire a lawyer and initiate legal action.

If ICBC hasn’t accepted full liability in writing on behalf of another driver, a settlement offer you agree to accept may be reduced by the percentage you’re held to have been at fault. If you were partially responsible for your injuries – by not wearing a seatbelt, for example - the agreed-upon settlement amount may also be reduced. Money you’re offered for your future care may be reduced by Part 7 benefits you’re entitled to.

The highest awards for pain and suffering go to people with severe chronic problems that limit their ability to work. The maximum amount currently paid ($300,000) is only awarded in cases of severe catastrophic injury. ICBC rarely offers this much out of court.

Depending on how your injury affects you, a below-the-knee amputation is worth around $100,000 in pain and suffering and an above-the-knee amputation around $125,000. Back injuries and disc problems with on-going consequences tend to be in the $50,000 range. A mild soft tissue injury may be worth nothing or a few thousand dollars at most, while a moderate-to-severe soft tissue injury may be worth $20,000 to $35,000 or more. If you have on-going deficits from a mild-to-moderate brain injury, you may be awarded $150,000 or more for your pain and suffering in court, but you probably won’t be offered this much out of court. Damages for pain and suffering vary most widely on claims involving subjective conditions (including accident-related chronic pain and psychological problems).

You may be entitled to more money for your economic losses (or “pecuniary damages”) than for your pain and suffering. Economic losses include your full wage losses, over and beyond the $300 weekly maximum you may have received as a no-fault accident benefit, plus future wage losses you’ll have as a direct result of your accident. If your employment possibilities were diminished by the accident, you should be compensated for this even if you’ve never been gainfully employed.

Unless you’ve fully recovered, you may also be entitled to damages for your future care needs. Both future care needs and future income losses substantially increase the value of a claim and often have to be determined in court. If this isn’t the route you want to take, you may want to hire an economist to calculate what’s appropriate. This might require you being assessed by a rehabilitation professional, occupational therapist, or vocational counselor. By hiring your own assessors, rather than relying on those ICBC hires, you’ll be more likely to receive a fair settlement.

Your settlement should also include the reimbursement of your out-of-pocket expenses, including treatment ICBC should have paid for as a no-fault accident benefit. You may be able to recover some of your costs in pursuing your claim as well. This will have to be negotiated with your adjuster.

Heads of Damages:

• General (or non-pecuniary) damages: pain and suffering
• Pecuniary damages: your economic losses
     • Special damages (reimbursement of out-of-pocket expenses)
     • Past income loss
     • Future income loss
     • Future care needs 
     • Tax gross-up / management fees (on large awards only)