Rising accident rates and payout costs have ICBC expecting a $1 billion deficit this year. (Black Press files)

ICBC shifts to Alberta model, with higher rates, private insurers say

B.C. public insurance includes funding enforcement, driver licensing

When the Insurance Corp. of B.C.’s new restrictions on “pain and suffering” payouts and court experts take effect April 1, B.C.’s monopoly vehicle insurance system will be “substantially the same as Alberta’s” but with higher premiums, says a new report from the Insurance Bureau of Canada.

The private insurance group has been lobbying for B.C. to open up basic vehicle insurance to competition, as ICBC struggles with soaring injury claim and legal costs. The B.C. government has imposed sweeping reforms to try to cut costs, as it faces a deficit of more than $1 billion for the fiscal year that ends March 31.

The Insurance Bureau retained accounting firm MNP to examine auto insurance rates and payouts in Alberta and B.C., for the same vehicles with $1 million third party liability, $500 deductible collision, $250 deductible and uninsured motorist protection.

“With the changes coming on April 1, the auto insurance systems in B.C. and Alberta will be substantially similar, with the key difference being who sells auto insurance in each province,” said Susan Mowbray, a manager at MNP. “That difference has contributed to drivers in B.C. paying more than their neighbours in Alberta for similar coverage.”

READ MORE: B.C. limits ‘duelling experts’ in ICBC injury cases

READ MORE: ICBC expecting $1.18 billion loss as caps take effect

ICBC spokesperson Joanna Linsangan said Thursday the latest changes make the corporation “work again for drivers, without losing the virtues of public insurance” that include its CounterAttack road checks and operating driver licensing.

“No private insurer invests in police enforcement, road safety improvement projects and makes sure that anyone who gets a licence in B.C. is safe to drive,” Linsangan said. “No private insurer could come into B.C. and offer the rates they offer in Alberta. Our system and cost pressures are very different and the levels of coverage provided to British Columbia far outweigh those in other provinces.”

ICBC has argued that higher accident rates are an issue across North America, despite safety improvements to roads and vehicles.

Attorney General David Eby says B.C. is not considering going to a no-fault insurance system, and the adversarial court method is being retained for major injuries. Another change taking effect April 1 diverts minor injury claims to an administrative tribunal.

Those changes will affect about 80 per cent of injury claims, and have sparked a legal challenge from the Trial Lawyers Association of B.C., arguing the court’s independence is being affected.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

Just Posted

Port Alberni’s Timbre! Choir celebrates diversity of music

Spring concert is scheduled for April 28 at ADSS Theatre

Alberni Valley Minor Hockey hands out hardware

Alberni Valley Minor Hockey Association wrapped up its 2018-19 season with an awards ceremony

Drag races headed back towards Alberni airport for 2019

Drag racing association receives approval, pending agreement with ACRD

Port Alberni author Gwynne Hunt releases new book

Unlocking the Tin Box is a true tale of family dysfunction

VALLEY SENIORS: Ernie and Margaret Bigelow enjoy 60 years of marriage

The couple met in Port Alberni when Ernie bought a “shack” next door to Margaret

VIDEO: Large dust devil swirls through town in B.C.’s interior

Residents look on as column climbs about 90 feet into the air

RCMP arrest B.C. man following threatening Vaisakhi Facebook post

Post made reference to pressure cooker bomb at massive Surrey parade

Second dump site of Dungeness crab discovered in northern B.C.

DFO confident new site related to larger April 2 dump

Northern B.C. high school student reaches 100,000 followers on YouTube

Voice actor, animator, Jericho Fortune has more than 30-million views on his channel GTAGAMER222

University mourns student who died in B.C. canoeing accident

Andrew Milner, 19, was in his second year with the University of Calgary’s basketball program

B.C. woman pleads for people to stop stealing daffodils meant to honour cancer victims

Cynthia Bentley honours memory of those lost to cancer by planting 100 daffodils each year

Canfor temporarily shutting down lumber mills across B.C.

Low lumber prices and the high cost of fibre are the cause of curtailment, according to the company

Two in critical condition, several still in hospital after Langley deck collapse

Close relative Satwant Garcha makes daily trips to visit those injured at the wedding

Allegedly intoxicated man arrested after 3 paramedics attacked at Kamloops hospital

Paramedics had transported the man to Royal Inlands Hospital for medical treatment

Most Read