If you have purchased compulsory auto insurance in British Columbia at any point over the last several decades, a significant legal development may affect you.

A proposed settlement has been reached in the “Rate Payers” portion of the class action lawsuit involving the Insurance Corporation of British Columbia (ICBC) and the Province of British Columbia.

What is this case about?

The lawsuit alleged that ICBC diverted funds to the Province to pay for certain health-related services. The plaintiffs argued that this practice unfairly increased compulsory auto insurance rates for British Columbians and essentially acted as an “unconstitutional tax.”

The Proposed Settlement

The Province of British Columbia has agreed to an all-inclusive settlement of $12,200,000 to resolve the Rate Payers’ claims. This agreement is a compromise of disputed claims and is not an admission of liability or wrongdoing by the Province or ICBC.

Where will the money go? Unlike some class actions where checks are mailed to individuals, the distribution for this case is structured differently due to the massive size of the class. After court-approved legal fees and costs are deducted, the remaining funds will be donated to various non-profit organizations and programs that benefit the public.

Who is included?

You are automatically considered a “Class Member” if you purchased compulsory auto insurance from ICBC between 1973 and January 26, 2026.

Your Legal Rights and Options

1. Do Nothing

If you support the settlement or do not wish to take independent legal action, you do not need to do anything. You will be bound by the court’s decision and the settlement terms.

2. Opt Out (Deadline: April 7, 2026)

If you wish to maintain your right to sue the Province independently regarding this specific claim, you must “opt out” of the class action. By opting out, you will not be part of this settlement, but you retain the right to pursue your own claim at your own expense.

How to Opt Out:

• Download the Form: Access the Ratepayer Class Opt-Out Form here.
• Submit: Complete and deliver the form to Murphy Battista LLP via mail or email ([email protected]) no later than April 7, 2026.
  
  

The Approval Hearing

The settlement is not yet final. A court hearing is scheduled for May 14, 2026, at 9:00 am in Vancouver. During this hearing, the court will decide whether to approve the settlement, the legal fees, and an honorarium for the representative plaintiff, Robert Rorison.

Stay Informed

For full details, we encourage all ICBC policyholders to review the official court-authorized documents:

• Long Form Notice: Detailed explanation of terms and legal rights.
• Short Form Notice: A summary of key deadlines.
  
  

For more information, visit the official case page here: ICBC MSP Class Action.