Rising accident rates and payout costs have ICBC expecting a $1 billion deficit this year. (Black Press files)

Rising accident rates and payout costs have ICBC expecting a $1 billion deficit this year. (Black Press files)

ICBC shifts to Alberta model, with higher rates, private insurers say

B.C. public insurance includes funding enforcement, driver licensing

When the Insurance Corp. of B.C.’s new restrictions on “pain and suffering” payouts and court experts take effect April 1, B.C.’s monopoly vehicle insurance system will be “substantially the same as Alberta’s” but with higher premiums, says a new report from the Insurance Bureau of Canada.

The private insurance group has been lobbying for B.C. to open up basic vehicle insurance to competition, as ICBC struggles with soaring injury claim and legal costs. The B.C. government has imposed sweeping reforms to try to cut costs, as it faces a deficit of more than $1 billion for the fiscal year that ends March 31.

The Insurance Bureau retained accounting firm MNP to examine auto insurance rates and payouts in Alberta and B.C., for the same vehicles with $1 million third party liability, $500 deductible collision, $250 deductible and uninsured motorist protection.

“With the changes coming on April 1, the auto insurance systems in B.C. and Alberta will be substantially similar, with the key difference being who sells auto insurance in each province,” said Susan Mowbray, a manager at MNP. “That difference has contributed to drivers in B.C. paying more than their neighbours in Alberta for similar coverage.”

READ MORE: B.C. limits ‘duelling experts’ in ICBC injury cases

READ MORE: ICBC expecting $1.18 billion loss as caps take effect

ICBC spokesperson Joanna Linsangan said Thursday the latest changes make the corporation “work again for drivers, without losing the virtues of public insurance” that include its CounterAttack road checks and operating driver licensing.

“No private insurer invests in police enforcement, road safety improvement projects and makes sure that anyone who gets a licence in B.C. is safe to drive,” Linsangan said. “No private insurer could come into B.C. and offer the rates they offer in Alberta. Our system and cost pressures are very different and the levels of coverage provided to British Columbia far outweigh those in other provinces.”

ICBC has argued that higher accident rates are an issue across North America, despite safety improvements to roads and vehicles.

Attorney General David Eby says B.C. is not considering going to a no-fault insurance system, and the adversarial court method is being retained for major injuries. Another change taking effect April 1 diverts minor injury claims to an administrative tribunal.

Those changes will affect about 80 per cent of injury claims, and have sparked a legal challenge from the Trial Lawyers Association of B.C., arguing the court’s independence is being affected.


@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

Council has recommended that the Liquor and Cannabis Regulation Branch (LCRB) approve a cannabis retail application by Buds Cannabis. It plans to open the store in the 9700-block of Second Street. It would be the business’ second outlet (it has an outlet in Central Saanich) and the second such business in Sidney. (Wolf Depner/News Staff)
Sidney recommends approval of licence for second pot shop

Councillors also push back against public concerns about Sidney’s image

From right: Brad Cameron, BCEHS superintendent of patient care delivery for Greater Victoria, with primary care paramedics Em Funk, Tyrone Trotter, Fiona Galvin and Peter Hill at the Leigh Road station. (Black Press Media file photo)
West Shore paramedics didn’t waver when faced with COVID-19 pandemic

B.C. Emergency Health Services personnel are this year’s Courage and Bravery Award recipients

February is Black History Month. (Photo: Government of Canada)
Camosun College highlighting Black content with research guide during Black History Month

The collection includes a range of works by Black authors and creators

Amy Morrison was surprised to find a note on her windshield for parking on a public street with no restrictions in south Oak Bay where she works. (Amy Morrison Photo)
Oak Bay resident uses notes to claim street parking

‘You must have noticed, we park in front of OUR HOUSE,’ note writer says

Debra Sheets, a University of Victoria nursing professor, is starting Victoria’s first Memory Cafe program for adults with dementia and their caregivers. (Photo: Debra Sheets)
Memory Cafe Victoria hopes to connect local dementia community

Adults with dementia and their caregivers will participate in weekly Zoom socializing and activities

Pig races at the 145th annual Chilliwack Fair on Aug. 12, 2017. Monday, March 1, 2021 is Pig Day. (Jenna Hauck/ Chilliwack Progress file)
Unofficial holidays: Here’s what people are celebrating for the week of Feb. 28 to March 6

Pig Day, Canadian Bacon Day and Grammar Day are all coming up this week

Staff from the Marine Mammal Rescue Centre, passersby, RCMP and Nanaimo Fire Rescue carried a sick 300-kilogram steller sea lion up the steep bluff at Invermere Beach in north Nanaimo in an attempt to save the animal’s life Thursday. (Photo courtesy Marine Mammal Rescue Centre)
300-kilogram sea lion muscled up from B.C. beach in rescue attempt

Animal dies despite efforts of Nanaimo marine mammal rescue team, emergency personnel and bystanders

Gina Adams as she works on her latest piece titled ‘Undying Love’. (Submitted photo)
‘Toothless’ the kitty inspires B.C. wood carver to break out the chainsaw

Inspired by plight of a toothless cat, Gina Adams offers proceeds from her artwork to help animals

B.C. Finance Minister Selina Robinson presents bill to delay B.C.’s budget as late as April 30, and allow further spending before that, B.C. legislature, Dec. 8, 2020. (Hansard TV)
How big is B.C.’s COVID-19 deficit? We’ll find out April 20

More borrowing expected as pandemic enters second year

The first of 11 Dash 8 Q400 aircraft's have arrived in Abbotsford. Conair Group Inc. will soon transform them into firefighting airtankers. (Submitted)
Abbotsford’s Conair begins airtanker transformation

Aerial firefighting company creating Q400AT airtanker in advance of local forest fire season

The Canada Revenue Agency says there were 32 tax fraud convictions across the country between April 2019 and March 2020. (Pixabay)
Vancouver man sentenced to 29 months, fined $645K for tax evasion, forgery

Michael Sholz reportedly forged documents to support ineligible tax credits linked to homeownership

Then-Liberal leader Andrew Wilkinson looks on as MLA Shirley Bond answers questions during a press conference at Legislature in Victoria. (Chad Hipolito / THE CANADIAN PRESS)
B.C. Liberal party to choose next leader in February 2022

Candidates have until Nov. 30 to declare whether they are running

After nearly 10 months of investigations, Mounties have made an arrest in the tripping of an elderly woman in Burnaby this past April. (RCMP handout)
VIDEO: Mounties charge suspect for tripping elderly woman near Metrotown in April

32-year-old Hayun Song is accused of causing bodily harm to an 84-year-old using her walker

British Columbia provincial health officer Dr. Bonnie Henry arrives to view the Murals of Gratitude exhibition in Vancouver, on Friday, July 3, 2020. THE CANADIAN PRESS/Darryl Dyck
Death threats mount against Dr. Bonnie Henry, sparking condemnation from Horgan, Dix

Henry has become a staple on televisions in homes across British Columbia since January 2020

Most Read