Accident rates and ICBC injury payouts have risen sharply in B.C. in recent years. (Black Press files)

ICBC cash reserves fall below B.C. government requirements

Attorney General David Eby changes rules to allow rate increase to be considered

Rising crash claims and injury payouts have depleted the Insurance Corporation of B.C.’s cash reserves below the province’s standard, forcing the province to exempt the Crown corporation from the rules to allow reforms.

Attorney General David Eby said he eased the cash reserve regulations to allow ICBC to apply to the B.C. Utilities Commission for a rate increase it is already collecting, and possibly additional increases.

“The rule in B.C. is that ICBC has to have 100 per cent match between the amount of money they have in the bank and the claims they are aware of,” Eby told reporters at the B.C. legislature Wednesday. “ICBC doesn’t have that. They have about 54 cents in the bank for every dollar of claim that they’re aware of. So we had to change the rule in order to appear in front of the utilities commission to lay out the changes that we’re doing with ICBC to get it back on track financially.”

The province announced earlier this month cost-cutting changes that include a $5,500 limit on payouts for pain and suffering claims, to take effect in April 2019.

In 2013, ICBC had $1.45 in the bank for every dollar of claims, but the situation has eroded due to an 80 per cent increase in injury claim costs in the past seven years.

RELATED: ICBC to cap injury payouts to stem losses

Eby intends to present legislation this spring to limit minor injury payouts, and also double the maximum benefit for serious injury claims from $150,000 to $300,000. With cost-containing measures a year away, it is not yet clear how much insurance rates will have to rise as ICBC estimates a $1.3 billion shortfall for the current year.

A 6.4 per cent increase in basic insurance took effect on an interim basis in November, with an additional increase to optional insurance resulting in an eight per cent jump in cost for vehicle owners who get both types of coverage from ICBC.

A consultant’s report released last summer suggested that ICBC rates could go up 30 per cent by 2019 if changes are not made.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

Just Posted

Sleep out aims to help homeless youth

Joseph Richard Group is fundraising for an annual sleep out to help youth get off the streets

Vaudeville keeps senior actors young, active

The Vaudevillians ready to storm the stage with ‘As Time Goes By’

Free ‘hoops’ fun brings Aldergrove youths together

Aldergrove Basketball Club revives the sport at Aldergrove Secondary

Aldergrove grad students prepare ‘spooktacular’ event

‘Haunted House’ event Oct. 27-28 will benefit Aldergrove Secondary ‘dry grad’

UPDATE: Stolen parcel returned to Fernridge woman

Courtney Thomas has had three thefts on her property since moving to Fernridge six months ago

B.C. NDP retreats again on empty-home tax for urban areas

Rate reduced for all Canadians, dissident mayors to get annual meeting

B.C. woman looks to reduce stigma surrounding weed-smoking moms

Shannon Chiarenza, a Vancouver mom of two, started weedmama.ca to act as a guide for newcomers to legal cannabis, specifically mothers

B.C. teen gives away tickets to Ellen Degeneres show, plans O Canada welcome

The Grade 9 student wanted to give away tickets in the spirit of inclusivity

Canada’s top general takes aim at new reports of military sexual assault

Gen. Jonathan Vance is unhappy some troops continue to ignore his order to cease all sexual misconduct

Online fundraiser to cover funeral costs of motorcyclist killed in collision

Larry Nizio, 37, died after crash with pickup truck Oct. 12 in Abbotsford

Ignoring climate change poses potential catastrophe for B.C.

Fisheries scientist says ‘extraordinary challenges’ in water management lie ahead

B.C. grow ops left in legal weeds post-legalization

“I think people are going to get a big surprise that it’s not going to change things much.”

Most Read