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

83-year-old Aldergrove man gives blood for the 200th time, saving 600 lives

There was no cutting of cake but Harvey Rempel challenes youth to start donating blood as his gift

Sources B.C. offers Langley residents ‘one-time crisis loans’ to help pay rent

Individual low income earners could receive a loan for up to $1,200 and $1,600 for a family

LETTER: Amid virus, Langley trail notes move reader

Expressing thanks for a kind gesture in a difficult time

Langley hospice mission continues amid COVID-19 crisis

Technology is being used to reach out to people in need of help with grieving

Trudeau rejects mandatory stay-at-home order for now; COVID deaths up

The virus has now infected more than 10,000 Canadians and cost 130 their lives

Abbotsford man who tries to start gas-station fight gets sprayed with gasoline

Suspect returns with knife and throws it at victim, but is quickly arrested by police

Abbotsford family of 5 who was stuck in Vietnam is now back home

Janzen family sends ‘huge and heartfelt’ thank you to everyone who helped

Celebrate Easter in a ‘safe way,’ Dr. Henry urges as B.C records 6 new COVID-19 deaths

Top doctor urges British Columbians to halt non-essential travel within the province

B.C. health officer says homemade masks may prevent spread of COVID-19 to others

Practising physical distancing, frequent hand washing and resisting touching your face are proven methods

B.C.’s senior home staff measures show results in COVID-19 battle

Dr. Bonnie Henry’s order restricts care aides to one facility

‘A matter of human decency’: Truckers’ union calls on gas stations, rest stops to fully re-open

Teamsters Canada wants feds, provinces to put pressure on facilities to re-open for transport workers

B.C. unveils $3.5M COVID-19 emergency fund for post-secondary students

Money will help students cover living expenses, food, travel, portable computers

‘We will get through this’: B.C. sees new COVID-19 death, but 57% have recovered

A total of 1,066 people have tested positive for the novel coronavirus

Most Read