One lawyer who spent years working on behalf of insurance companies has criticize what he calls its attempts to reduce client settlements to “pennies on the dollar.”
Writing for Pique, a veteran BC attorney says he wasn’t surprised to learn ICBC had joined a lawsuit raising questions about what if any role a cyclist killed in a road accident may have playing in his own dealth.
It is illustrative of what insurers will do to avoid settlements,” reads the Op-Ed.
Many insurance professionals are now arguing the lawyer has overly simplified and mischaracterizes the industry as a whole. His arguments also strike some as naïve.
“I agree that it was shameful … to put the possible impairment of the cyclists on the table but beyond that, contributory negligence is a reasonable and common defense in many cases,” says a B.C. industry veteran speaking on condition of anonymity. “I might be naïve, but I like to think that insurance companies do try to be as fair as possible – including ICBC.”
In fact, this representative feels that insurance companies have an obligation to protect their entire consumer base, not just a selected few.
“Imagine the uproar there would be if insurance companies settled every lawsuit for the amount filed. Lawyers would be lined up taking on policyholders and shareholders as clients to sue the big bad insurance company for mismanagement,” the insurance professional said. “’You paid too much in claims so my premiums went up! ‘You paid too much in claims so my shares have dropped in value and I don’t get a dividend!’”
In fact, if carriers weren’t so active in defending their insureds, it is likely that corruption would ensue.
“Not only would the lawyers be ready and waiting, they would be actively trolling for clients – Bring on the class action suit!” the source said.
“I do find it ironic that a lawyer is complaining about the system, when in my mind, lawyers can be a big part of the problem,” the insurance professional said, explaining how certain lawyers have a tendency to name extraneous parties in a lawsuit with the hopes that one will supply the deep pockets.
"That ends up with insurance companies spending fortunes in defense costs and unnecessary settlements on behalf of innocent insureds because a lawyer thought it would be a good idea to drag them into a lawsuit."
