Attorney General David Eby (Black Press)

ICBC in ‘financial dumpster fire’: minister

Attorney General David Eby says body shop costs rising along with crashes, claims

Capping minor injury awards and raising deductible amounts will be part of an overhaul of the Insurance Corporation of B.C. this spring to get its runaway costs under control, Attorney General David Eby says.

Rising costs of accidents and a “massive increase” in the awards for minor injuries are unsustainable, and measures will be unveiled in the spring legislature session to deal with the deficit, Eby said Monday. Without an overhaul, it would require a $400 premium hike for each B.C. driver just to get ICBC to break even, he said.

While he continued to reject a switch to “no-fault” insurance that would prevent all claimants from suing ICBC for a settlement, Eby said the costs of injury awards are not sustainable, and auto body shop costs have also risen 30 per cent in the last two years.

“These initiatives will be difficult for groups with an interest in the status quo,” Eby said.

ICBC basic insurance rates went up 6.4 per cent in November, which works out to an increase of $4.75 per month for the average B.C. driver.

RELATED: ICBC projects deficit of $1.3 billion this year

RELATED: ICBC board members replaced before NDP overhaul

Eby released a consultant’s report after the NDP government took office in July, projecting ICBC rates could rise 30 per cent by 2019 if changes aren’t made. At the time, Eby rejected the idea of no-fault insurance that would cap the awards available for soft tissue and other minor injuries.

B.C. Liberal leadership candidates and the new NDP government have traded blame for the soaring increase in claim costs, which has been a cause of alarm for ICBC executives since 2013.

Eby called the situation “a dumpster fire” and blamed the B.C. Liberal government for removing recommendations for change from a 2014 independent review. Those proposed changes included caps on minor injury awards.

Barry Penner, the former B.C. Liberal cabinet minister who was replaced by former NDP minister Joy MacPhail as ICBC board chair after the change of government, said the tactics of personal injury lawyers to maximize injury claims are among the big drivers of cost.

ICBC is also dealing with a big jump in accidents. After a steady rate for several years, crashes went up 23 per cent in two years, 2015 and 2016. The previous government increased penalties for distracted driving, and Eby said more measures are on the way to get people to put away their smartphones while driving.

Like us on Facebook and follow us on Twitter.

Just Posted

Alberni university zeroes in on disability and poverty

BY MIKE YOUDS SPECIAL TO THE NEWS The road to poverty can… Continue reading

Celebrate cycling in Port Alberni during Bike to Work and School Week

Numerous ‘celebration stations’ are planned for May 28 to June 2

Ahousaht welcomes massive Surfrider Canada conference to Meares Island near Tofino

“It was the first time we’ve all come together.”

Alberni RCMP kept busy with 170 calls over May long weekend

Detachment answers calls from fatal vehicle crash to man with a gun, trailer thefts

Alberni pub owner kicks off new event for car lovers

Car enthusiast Helen Poon debuts Cars and Coffee on May 27

Black Press Media to launch Pipeline Full of Controversy series

Series covers Trans Mountain’s history, science, Indigenous reaction, politics and economics

Bug spray 101: Health Canada wants you to stay bite free

Health Canada is reminding Canadians to use bug spray and other insect repellents safely

Unions reject CP Rail contract offers

Both meeting Friday to determine next steps; 72 hours notice required before strike action.

B.C. jewellers warn public about fake gold scam

‘They are playing on people’s sympathy and their greed’

Hunt continues for two suspects in Ontario restaurant explosion

The explosion left 15 people injured, but all victims have now been released from hospital

B.C. teacher charged with sexual offences involving two teens

Henry Kang, 50, of Abbotsford charged with two counts each sex assault and sexual exploitation

Toronto Raptors star to hold basketball camp in B.C.

DeMar DeRozan is hosting a four-day camp for players aged 6-16 at the University of Victoria

Military college students accused of violating Qur’an with bacon

Alleged acts by four cadets from the Royal Military College in Quebec caught on video

Canucks sign top prospect Elias Pettersson to entry-level deal

Slick centre drafted No. 5 overall in 2017 NHL draft

Most Read