ICBC knows that the economic reality that most claimants will not have the financial resources to pursue a lawsuit
ICBC can be sued for the payment of Part VII benefits under contract, but the lawsuit must be started within 2 years of the date of the accident or within 2 years of the date of the last Part VII payment, whichever is later. You can also file a Section 103 notice before the above noted deadlines to extend the deadline by another 2 years.
In most cases, pursuing a lawsuit is simply not worth the time and money necessary to have the case decided. ICBC knows that the economic reality is that most claimants will not have the financial resources to pursue a Part VII lawsuit so the trend at ICBC is to deny claims on the flimsiest of evidence.
There is also the option of pursuing the ICBC internal review procedure but usually that approach is not that productive.