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.


Like us on Facebook and follow us on Twitter.

Just Posted

‘Killer’ teaches boxing basics

Step-by-step moves can be practised at home

Hillside Avenue death ruled a homicide, police say

No charges have yet been laid in the killing of Victoria man Joe Gauthier

Hope gets eight year sentence for Church Avenue sex assault

Eight years is the sentence for David Robert Hope, who was found… Continue reading

Valdy to perform in Sooke

Concert takes place March 23 at Holy Trinity Anglican Church

Vancouver Island’s Best Videos of the Week

A look at some of the best video stories from the past week ending March 16, 2018

Women’s Expo seeks to empower women

Victoria Women’s Expo set for Saturday and Sunday at Pearkes Recreation Centre

Experts: Society has a role in trying to prevent domestic violence

Experts are speaking out following the murder of a woman and her son in Ontario

Progress on fixing Phoenix pay system backlog could be short-lived: Ottawa

Feds have said they won’t try to recover money overpaid until all outstanding issues are fixed

Northern lights chasers in Canada discover new type named ‘Steve’

Phenomenon linked to a powerful current created by charged particles in Earth’s upper atmosphere

Washington state backs B.C. in pipeline dispute

Governor Jay Inslee says he is ‘allied’ with the province on Trans Mountain expansion projection

Dead rabbits found at Comox Valley Exhibition Grounds stoke concerns about Nanaimo virus

A B.C. wildlife veterinarian says a few of the dead bunnies will be sent for diagnosis next week.

SAY WHAT? Readers weigh in on high-speed rail to U.S.

B.C. to contribute $300,000 to a million-dollar business study on the proposed project

B.C.-based CEO charged with conspiring to sell unhackable phones to criminals

Vincent Ramos of Richmond, was arrested last week in Seattle in years-long undercover operation

Most Read