Province to prevent ICBC surpluses from going into general revenue
Posted March 2, 2020 11:57 am.
Last Updated March 2, 2020 12:02 pm.
VANCOUVER (NEWS 1130) – The provincial government is proposing legislation to ensure ICBC is not used like an ATM.
He added the proposed changes will ensure future profits will stay within ICBC and be used to make auto insurance rates more affordable, as well as for other programs and services that benefit drivers.
“This legislation to keep ICBC surpluses out of government coffers is another step our government is taking to restore ICBC to a sustainable financial position so that insurance rates can stay affordable,” Eby said in a release.
“Drivers can have confidence in knowing that their auto-insurance premiums are going toward benefiting drivers.”
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He added the province expects future surpluses at ICBC are possible and likely.
The government also recently announced plans to curtail legal costs in the public insurance system by limiting the ability of injured people to sue at-fault drivers after a crash.
The NDP has said that change, starting May 2021, will lower premiums by about 20 per cent or an average of $400 in annual savings per driver.
The provincial government had been under pressure to ease what has notoriously become known as the dumpster fire that is ICBC.
As was previously announced, the province is bringing in what resembles a no-fault insurance model. As part of the B.C. government’s plan, moving away from lawyers and legal costs will not only supposedly save British Columbians money, but will also put more cash into care for those hurt in a crash.
New benefits have also been announced for those most seriously hurt in a crash.
-with files from Hana Mae Nassar, Liza Yurda and The Canadian Press.
