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

54-40 thrills Aldergrove Fair crowd: VIDEO

54-40 were joined on stage by the band members’ dancing children, the “Aldergrove Rockettes”

VIDEO: Critter Care opens its doors

Thousands attend open house at Langley wildlife rehabilitation centre

ZONE 3: Luck played no part in getting Riley Ward to the BC Games

Langley baller flouts misfortune on the floor; he’d rather get by on hard work

New zipline breaks in Langley City park

Brydon zipline will remain closed till end of summer

Top Cheese Tournament returns to Langley Events Centre

For box and field lacrosse players hoping to get in a few extra reps in

BC Games: Day 2 comes to an end

Hundreds of medals have been handed out at the 2018 BC Summer Games in the Cowichan Valley

B.C. mining company, involved in 2014 spill, ordered to pay lost wages

Mount Polley Mining Company must pay wages to 26 employees who were laid off without proper notice

Two significant wildfires burning in southeastern B.C.

More than 20 fires were burning in the Southeast Fire Centre as of Saturday afternoon

Volunteers provide the glue that keeps BC Games moving

The 2018 Cowichan Summer Games had more than 2,300 volunteers on hand across Vancouver Island

No Name brand chicken nuggets recalled due to possible salmonella

Canadian Food Inspection Agency says multiple illnesses reported in B.C., Alberta and Ontario

Lodeiro scores twice to help Sounders beat Whitecaps 2-0

Seattle’s Nicolas Lodeiro opened the scoring in the fifth minute when he converted a penalty kick

Fraser Surrey Docks mechanic dies on the job

‘This is a very sad day - a worker went to his job this morning and didn’t go home’

Race walker breaks 18-year-old BC Games record

Zone 6 athlete Olivia Lundman crossed finish line with ease, to loud cheers in Cowichan

PHOTO GALLERY: BC Games Day 2

A brief look at action from the 2018 BC Summer Games in the Cowichan Valley

Most Read