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

Former Vernon Viper recognized for ALS fundraising

Coldstream’s Aaron Volpatti raised more than $27,000 competing in an Ironman triathlon last summer

Vernon shutterbugs capture rainbow

A rain event July 9 made way for a glorious sight

Fundraiser kicks off for Lake Country families displaced by house fire

A GoFundMe campaign has been launched to raise $5K for those who lost everything in early morning blaze

Rescued hawk returned to Lumby skies

A rehabilitated Swainson’s hawk was returned to its Rawlings Lake habitat

Vernon Secondary grad wins award for community work during pandemic

Chelsea Durward helped bring hampers to 55 families in Vernon, Armstrong, Lumby and Kelowna

B.C. sees 25 new COVID-19 cases, community exposure tracked

One death, outbreaks remain in two long-term care facilities

VIDEO: Alberta man rescues baby eagle believed to be drowning in East Kootenay lake

Brett Bacon was boating on a lake in Windermere when he spotted the baby eagle struggling in the water

Summerland Blossom Youth Ambassador Program to hold coronation

Event will be held by video as a result of COVID-19 precautions

Pooch abandoned at Penticton doggy daycare suffered from oral disease

A fundraiser for Okie held by the BC SPCA surpassed its goal of $1,700

Couple shaken up after homophobic encounter at Kelowna mall

‘We’re not in the States; we’re not in some little hick town; we’re in Kelowna, British Columbia, Canada. And it still happens’

Summerland to allow in-person attendance at July 13 council meetings

Two meetings will be held at Summerland Arena Banquet Room to accommodate public

Conservationists raise concerns over state of care for grizzly cubs transferred to B.C. zoo

‘Let them be assessed now before their fate is sealed,’ urges B.C. conservationist Barb Murray

Dog locks out Kelowna couple on 4th floor patio

Kelowna firefighters were called in to rescue the two people

B.C.’s COVID-19 job recovery led by tourism, finance minister says

Okanagan a bright spot for in-province visitor economy

Most Read