ICBC rates could go up by as much as 30 per cent by 2019, a new report warns.
The Ernst & Young report, released Monday, says the average driver could pay up to $2,000 per year, as long as trends persist, the corporation still has to cover its costs through rates, and nothing is done to improve things.
Totally unacceptable!!
鈥� Dianne Watts MP (@DianneLWatts)
It points to more crashes, higher payouts for minor injuries, and a rate of claim increase that is going up faster than accident rates.
Attorney General David Eby, who is the new NDP government鈥檚 ICBC minister and past critic, wasted no time slamming the BC Liberals鈥� record. The NDP has long criticized the BC Liberals鈥� handling of the auto insurer, and promised to slow down rate hikes during the 2017 provincial election campaign.
鈥淭his report illustrates a situation that must have been apparent to the board and to the previous administration,鈥� Eby told reporters in downtown Vancouver. 鈥淔or some reasons they failed to act鈥� we will act. A 30-per-cent rate increase will not be happening on our watch.鈥�
. slams for 'mismanaging' , said they used it as a 'bank machine'
鈥� Kat (@katslepian)
鈥淭he BC Liberals have been using ICBC as a bank machine, bringing money out of the corporation to claim better finances than are the case.鈥�
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The report says accident rates went up by 23 per cent between 2013 and 2016, and that vehicle repair costs skyrocketed to a total of $1.5 billion in 2016.
According to Eby, drivers who aren鈥檛 careful on B.C.鈥檚 roads might soon have to pay for it.
鈥淒rivers should be rewarded for good driving and people who are bad drivers should have to pay higher rates,鈥� he said. 鈥淢aking them pay more because they are costing the system more just makes sense to us.鈥�
. says that will be fair on rates: bad drivers to pay more because they cost the province more
鈥� Kat (@katslepian)
But not everything the report proposes interests the new minister, who called photo radar and no-fault insurance 鈥渘on starters.鈥�
He did not elaborate, but did say he planned to reduce how many claimants felt the need to hire lawyers to deal with ICBC.
High-value cars over $150,000 are also cited as a major reason for higher premiums. Seventy per cent more luxury cars are on the road in 2016 than in 2013.
In late 2016, then-transportation minister Todd Stone announced ICBC would no longer cover cars worth more than $150,000. When a 2016 ICBC insurance forecast showed a potential hike of 42 per cent over the next five years, the agency called the numbers 鈥渉ypothetical鈥� and 鈥減otentially misleading.鈥�
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In 2000, the average minor injury claim paid out $8,220, compared to just over $30,000 in 2016 鈥� an increase of 365 per cent.
Serious or catastrophic injury payouts, the report notes, increased by only 25 per cent. In total, payouts for minor injuries now cost ICBC more than payouts for serious injuries.
Liberal MLA Andrew Wilkinson called Eby鈥檚 response to the report a 鈥渃omplete failure.鈥�
鈥淲e now have a government telling us what they鈥檙e not doing to do and has completely failed in telling us what they are going to do,鈥� said Wilkinson.
Vancouver-Quilchena MLA Andrew Wilkinson says the new NDP government should have have a plan in place to deal with ICBC 鈥� now. Katya Slepian/Black Press
He blamed the recent rise in insurance claims on new, high-tech vehicles with components that are expensive to repair. He said the NDP has known about that and the growing number of claims for years.
鈥淲hat I would do with this report is suggest to the NDP it鈥檚 up to them to come up with a viable plan for how to face the future on ICBC,鈥� said Wilkinson. 鈥淲here is the plan that they鈥檝e been working on for four years?鈥�
. says should have known about issues + have a plan. No answer on what would do though
鈥� Kat (@katslepian)
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