A Richmond senior may have to close up his beloved auto shop of 35 years after a bitter battle with ICBC's no-fault insurance regime.
"I just want to get back my life. One year ago, no accident, nothing. (I was) enjoying my life," said Yoshihiro Yanagitani, owner of A & A Japanese Engine Specialist in Bridgeport.
"Suddenly after 75 years, suddenly the whole of my life is gone. So nothing left for me. And of course, I saved up a little bit of money, but that's gone too."
When the Richmond News first met with Yanagitani in the summer of 2023, he was in a hospital bed at Richmond Hospital, at a loss as to where he could stay after discharge.
The 74-year-old was riding his motorcycle near Iona Beach when he collided with a car making a left turn. Footage of the accident showed the car had paused before proceeding with the left turn, and although Yanagitani tried to apply his brakes, it was too late.
The accident, which happened on May 7, left Yanagitani with a long list of injuries including fractures on his face, ribs and fibula, as well as a dislocated shoulder that was only discovered three weeks after he was admitted to the hospital.
Now sitting in his office almost seven months later, Yanagitani is still trying to look for a place to stay and is contemplating closing his shop due to mounting business losses.
He had to close up shop while he was hospitalized because he was unable to supervise his junior mechanics.
His shop was hemorrhaging up to $25,000 a month from rent and utilities while it was closed, and to keep his mechanics, Yanagitani also paid them out of his pocket.
Although his mobility has improved since his discharge, Yanagitani can only open the shop two to three days a week as he still has to attend doctor's appointments, and he is unable to take on heavy-duty jobs due to his health. Some of his mechanics also left in search of full-time employment, and he is trying to hire more help.
As of now, he only makes enough to cover his mechanics' wages.
"I didn't create an accident, you know," said Yanagitani, adding his auto business stemmed from his passion for auto mechanics.
Without the business, he loses his decades of connections with regular clientele and friends, as well as a means to pursue his hobby.
Yanagitani explained he is fighting to keep his shop open, but he will have to make the difficult decision to shut it down if he's unable to catch up with his losses by August.
Business losses not covered under no-fault insurance
"So (the) least ICBC can do, financially, they... should pay (me). That's why people bought insurance, right?" said Yanagitani, who thinks ICBC should have been clearer about the limitations of the no-fault insurance coverage.
Yanagitani had a difficult time seeking compensation from ICBC at first — he had to go over his accident details with three different adjusters while he was still recovering in the hospital, and the case proceeded slowly despite efforts from his lawyer.
The process eventually sped up and Yanagitani was able to get $740 a week for his income replacement benefit, around $15,000 in permanent impairment benefits and most of his health care benefits are covered by ICBC.
"The problem, of course, is that that doesn't cover at all his business losses," said Ryan Kusuhara, Yanagitani's lawyer.
"If you're a business owner, if you get into an accident, even though through no fault of your own, you basically get nothing for your business. There's nothing included in the (no-fault insurance regime)."
Although business owners can seek further protection by purchasing business interruption coverage from private insurance, Kusuhara said this was not made clear when the no-fault insurance scheme was introduced in 2021.
"And that's something Mr. Yanagitani didn't know, until he found out the hard way," he added.
Kusuhara said other issues with the no-fault regime include limitations with the permanent impairment benefits, which adopts a "wait and see approach" to see whether one's injuries get better in time and has rigid categories that may not apply to all injuries.
"I think the fundamental problem is that even ICBC, at the best of their intentions, there are simply things they cannot do, for example, give Mr. Yanagitani business compensation. Because the law is designed that way.
"And so, if the law stays the same way that it is, people who are small business owners will continue to have to pay for business interruption coverage for events like this, and that will cost significantly more than the premiums they paid previously."
Lindsay Wilkins, ICBC media relations advisor, told the News the B.C. government and ICBC "widely publicized the transition to Enhanced Care" between the Feb. 2020 enhancement and the implementation date in May 2021.
Customers injured in a crash and unable to perform regular job duties are entitled to income replacement benefits up to $109,000 per year in gross income, she explained, and customers are given the option to purchase additional income protection.
She also confirmed business insurance from other insurers "could potentially help cover additional business expenses in a situation like (Yanagitani's)."
"We understand that Mr. Yanagitani is going through a challenging time since his crash in May 2023," said Wilkins.
"We’ll continue to be there for him in his recovery and ensure he receives all of the benefits available to him under Enhanced Care."
Doubts casted about liability finding in accident
Another issue with Yanagitani's case, said Kusuhara, is the difficulty in seeking criminal prosecution for driving offences.
Despite having doubts about the circumstances of the accident and providing dash cam footage to the police, the driver in Yanagitani's accident was found to be not at fault because the sun was shining too bright.
Yanagitani said Richmond RCMP initially provided him with the wrong information about his accident, including the wrong make of the car and the address of the accident. However, when Kusuhara tried to obtain the accident report, he was told it was going to take six months.
Although Yanagitani and Kusuhara questioned whether police had reviewed the dashcam footage of the accident, Richmond RCMP told the News footage from the collision was "received and reviewed on Dec. 14, 2023 by the lead investigator."
When asked about the protocol for gathering evidence for motor vehicle accidents, Richmond RCMP spokesperson Adriana O'Malley said dashcam footage or video surveillance "can form a key piece of evidence."
"Once all the evidence is compiled, it will be reviewed to determine whether there is sufficient evidence to support charges under the applicable act. For example, Criminal Code or Motor Vehicle (Act)," she said.
Back at Yanagitani's office, Kusuhara said Yanagitani's situation is "a shame" because Yanagitani has "worked harder than any of (his) clients that (he's) had to recover."
"... we have somebody who's worked in the community for 35-plus years. And despite the fact that he's done his best to recover, he might still have to close his shop because of financial reasons," he said.
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