When a loved one dies unexpectedly in a motor vehicle accident, families are thrust into a devastating emotional and financial crisis. For one Kelowna family, the tragedy was compounded by what they call “an insult”: a mere $2,500 death benefit from British Columbia’s public auto insurer, ICBC. Their story, recently reported by Global News, is stirring debate about whether the province’s no-fault insurance system is truly serving the people it was designed to protect.
This incident is not just a policy debate — it is a reminder of how critical compassionate, comprehensive support is, in the wake of a fatal crash. And it raises urgent questions for other Canadians: If this happened to your family, would your insurance system protect you?
The heartbreaking story involves 24-year-old Jordan Goulet, who died in a car crash in Kelowna in January 2024. His mother, Caroline, says she received a cheque from ICBC for $2,500. That was the entirety of the death benefit under B.C.’s “Enhanced Care” model — a no-fault insurance system introduced in 2021.
There was no opportunity to sue for pain and suffering. No compensation for loss of future earnings. No real acknowledgment of what this life meant. Instead, the system simply issued a cheque and moved on.
To grieving families, that feels hollow. “It’s not even enough to pay for his cremation and urn,” Caroline told reporters. “I felt like it was a slap in the face.”
Under ICBC’s “no-fault model,” injured individuals or families of deceased victims cannot sue atfault drivers — even when the other driver’s negligence caused the death. Instead, all benefits are administered through ICBC directly, including:
- Medical care and rehabilitation services;Wage loss replacement; and • Lump-sum death benefits.
The maximum death benefit for a single person without dependents is just $2,500. If the deceased had dependents, it may rise — but not by much. This is a dramatic departure from the previous tort-based model, which allowed families to seek compensation through the courts for wrongful death, future income loss, and emotional suffering.
Families dealing with fatal accidents often face:
- Funeral costs that can range from $7,000 to $15,000 or more;
- Loss of income, particularly when the deceased was a primary breadwinner; Emotional trauma, which may require long-term counselling and therapy; and • Loss of companionship, which is immeasurable in any dollar amount.
Under tort systems (used in Alberta and some other provinces in Canada), families can pursue legal claims that reflect these real-world losses. Under no-fault systems like B.C.’s, those options are cut off. /p>
What’s more, the ICBC model doesn’t allow for accountability. If a reckless or drunk driver causes a fatal crash, the family cannot sue them. This can feel like justice denied — and a system more focused on protecting the insurer than the people.
B.C. is not alone in exploring or adopting no-fault models. Alberta has debated similar reforms, with insurance companies pushing for changes to reduce litigation and payouts. But stories like the Goulet family’s highlight what can be lost in the process: dignity, justice, and adequate support.
No-fault models often promise lower premiums — but at what cost? Critics argue that these systems transfer the financial burden from insurers to grieving families. They prioritize efficiency over empathy.
This is more than a policy failure — it’s a moral one. A young man’s life was cut short, and his family received barely enough to cover cremation costs. The pain of that loss will never fade, but being told that his life was worth just $2,500? That’s a wound that reopens every time the family thinks about justice.
When governments adopt no-fault systems, they must ensure the benefits truly reflect the realities of grief, loss, and recovery. Anything less is just shifting costs and avoiding responsibility.
If you live in Alberta or elsewhere in Canada, you still have the right to pursue compensation when another driver’s negligence results in a serious injury or wrongful death. But as debates about insurance models evolve, it’s essential to:
- Review your auto insurance coverage — especially optional policies for death and disability;
- Know your rights under your province’s current insurance framework;
- Speak with a personal injury lawyer if you’ve suffered a loss in a collision; and
- Advocate against no-fault models if you believe in fair compensation and accountability.
No insurance system can undo the pain of losing a loved one. But it can – and must – provide meaningful support that reflects the value of a life, and the devastation left behind.
Read the original story here: “https://globalnews-ca.cdn.ampproject.org/c/s/globalnews.ca/news/11204262/icbc-death-benefits-complaint/amp/
Follow FAIR Alberta for information on auto insurance changes impacting you, your family and all Albertans. https://chng.it/M96xLCQdMW Petition against No-Fault Auto Insurance
If you or a loved one have been involved in an accident, you know how devastating the consequences can be. That's why having an experienced personal injury lawyer on your side is crucial to help you navigate the legal system and obtain the compensation you need to cover your medical bills, lost wages, and long-term care in Alberta.
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