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.

Just Posted

Thunderstorms, hail expected in Elk Valley tonight

Thunderstorms and hail are expected to impact the Elk Valley within the… Continue reading

Veterans, supporters gather to celebrate Legion Day

Submitted Fernie Legion Branch 36 On June 29th, laughter, applause, conversation and… Continue reading

Komatsu announces plans for $40M, 85k-square-foot facility in Sparwood

Komatsu Mining Corp. has announced plans to develop a new 85,000-square-foot sales… Continue reading

Former Fernie Ghostrider re-signs with Vancouver Canucks

Josh Teves has signed a two-year contract with the NHL team

Motor vehicle incident in Sparwood results in death of dump truck driver

An individual has died after the dump truck they were driving went… Continue reading

VIDEO: Missing teens named as suspects in three northern B.C. killings

Kam McLeod and Bryer Schmegelsky are wanted in the deaths of Lucas Fowler, Chynna Deese, unknown man

Northern B.C. double homicide, suspicious death: A timeline of what we know

Two teens from Port Alberni are now wanted Canada-wide in connection to the three deaths

B.C. teacher suspended for professional misconduct

Grade 8 shop teacher admits to use of vulgar language and profanities toward students

B.C. wine industry legend Harry McWatters dies

Among his accomplishments, McWatters founded the province’s first estate winery, Sumac Ridge Estate

Provincial health body refuses to release full findings of cancer triage system audit

Information and Privacy Commissioner asked to review redactions

Southern resident killer whale died of blunt trauma, likely from ship

J34 was found more than two years ago near Sechelt, but the necropsy findings have now been released

B.C. rail crossing death highlights risks for people in wheelchairs: watchdog

Transportation Safety Board points to ‘persistent risks faced by persons using assistive devices’

B.C. teens wanted in double homicide, suspicious death spotted in Manitoba

Kam McLeod and Bryer Schmegelsky were thought to have been seen in the Gillam area

Nelson’s net-zero ready house is a glimpse into B.C.’s future

One local builder set out to construct the province’s ideal energy efficient home

Most Read