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

Langley centenarian: “getting old is for the birds”

Lillian Tuningley has lived in many communities around Saskatchewan and British Columbia.

Quebec and Surrey students scrub and polish at Langley museum

A national exchange program includes a volunteer requirement. They opted to help the flight museum.

Letter: That other Langley letter writer should be censored

Township and City governance can’t be compared, one Langley resident writes.

Langley-based Giants receive awards, gear up for Friday playoffs

Ty Ronning walked away six different 2017-18 team awards.

VIDEOS: Langley university beats Castlegar to win first-ever league championship

Blue fans hope their support – literally painting themselves in blue – helped secure TWU’s victory.

VIDEO: B.C. Mounties reunite veteran with lost military medals

RCMP say Zora Singh Tatla, who served in the army in India for 28 years, is the righful owner

Experts urging caution as rabbits die by the hundreds in B.C. city

Province of B.C. confirms more positive tests for rabbit haemorrhagic disease

Federal government seeks public feedback on pedestrian safety

What safety measures do you think need to improved for pedestrians and cyclists?

Search continues for 10-year-old Montreal boy missing since Monday

Montreal police said they are exploring every possibility in search for Ariel Jeffrey Kouakou

Airline passenger-rights bill claws back protections for travellers: Advocate

Bill C-49 would double tarmac delays, scrap compensation for flights affected by mechanical failures

Canadian research vessel to explore 19th Century shipwrecks

Commissioned this week in Victoria, the RV David Thompson is Parks Canada’s newest vessel

VIDEO: ‘New wave’ of anti-pipeline protests return to Trans Mountain facility

About 100 demonstrators with Protect the Inlet marched to the Burnaby terminal Saturday

B.C. man to plead guilty in connection with hit-and-run that killed teen

Jason Gourlay charged with failure to stop at the scene of accident, attempting to obstruct justice

BCHL Today: Wenatchee Wild goaltenders a cause for concern

BCHL Today is a (near) daily look at what’s going on around the league and the junior A world.

Most Read