Rising accident claims and associated court costs have added to billion-dollar deficits at ICBC. (Penticton Western News)

ICBC surpluses should be hands-off to politicians, David Eby says

NDP to make taking profit from optional car insurance illegal

With the Insurance Corp. of B.C. projected to get back in the black this year, the B.C. government is moving to end the practice of transferring surplus funds to help the province’s overall bottom line.

Attorney General David Eby said Monday he is introducing legislation this week to make it illegal to direct ICBC to turn over excess revenues. That would mean a future government would need a majority vote in the B.C. legislature to change the law before doing it again.

The previous B.C. Liberal government last took what was called a “dividend to shareholders” in 2015, transferring $138 million from the Crown corporation for what was then a surplus budget. The annual transfers were as high as $576 million in 2009-10, diminishing in the following years as ICBC’s costs and claims began rising.

After losses of $2.5 billion in the past two years, Finance Minister Carole James’ February budget projects a loss of $91 million for the fiscal year ending March 31. With a cap on minor injury payouts and an administrative tribunal taking injury disputes out of court, the budget projects an $86 million surplus for 2020-21, increasing to $191 million in two years.

RELATED: Budget projects ICBC to return to surplus this year

RELATED: New drivers paying more for optional ICBC coverage

Eby expects further legal battles with the personal injury lawyers who have challenged his reforms in court. A B.C. Supreme Court judge struck down his first effort to limit the number of expert witnesses in injury cases last year.

Since that decision, Eby has moved to further restrict the ability of injured people to sue. Further legislation is expected to move to the “no fault” system for most injury cases, with a prescribed payout similar to the way WorkSafeBC deals with injuries or death on the job.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC legislatureICBC

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Interior Health officials outline pandemic response in virtual town hall

Kelowna-Lake County MLA Norm Letnick moderates digital discussion, Q&A with Interior Health leadership

B.C. COVID-19 contact restrictions working, Dr. Bonnie Henry says

’Not out of the woods yet’ as next two weeks are critical

Interior Health to host virtual town hall Friday, March 27

The Q&A forum begins at 6 p.m. PDT, link in story

West Kootenay octogenarian helping develop low-cost ventilator for COVID-19 patients

Peter Brockley is working with his doctor son, Graham, to develop the unit that could save lives

Interior Health issues alert following confirmed COVID-19 case on WestJet flight

The public exposure alert comes following the March 21 WestJet flight from Calgary to Kamloops

Trudeau announces 75% wage subsidy for small businesses amid COVID-19

This is up from the previously announced 10 per cent wage subsidy

Morning world update: Cases surge past 600,000; positive news in Germany

Spain suffers its deadliest day as Germany considers April 20 to possibly loosen restrictions

VIDEO: Penguins roam empty halls of Vancouver Aquarium

COVID-19 has forced the Vancouver Aquarium to close access to guests – leaving room for its residents

Kids get back to learning in B.C., online

Ministry of Education rolls out new tool for school

67 more B.C. COVID-19 cases, two more deaths in Vancouver region

Positive tests found in Surrey, Langley long-term care facilities

‘Now is not the time to bag that peak’: BCSAR manager discourages risky outdoor adventures

Call volumes are not going down, even as the COVID-19 pandemic persists

Food Banks BC already seeing surge in demand due to COVID-19 pandemic

Executive director Laura Lansink said they expect applications will keep increasing

Nanaimo couple caught aboard cruise ship with four dead and COVID-19 present

Four ‘older guests’ have died on Holland America’s Zaandam; cruise line confirms two COVID-19 cases

Frontline workers receiving COVID-19 isolation exemptions prompt concerns

Provincial Health Authority staff exempt from self-isolation upon return from international travel

Most Read