Legislation to ensure ICBC surpluses benefit drivers

VICTORIA, B.C. – The Province will be introducing legislation that will prevent any B.C. government from…

VICTORIA, B.C. – The Province will be introducing legislation that will prevent any B.C. government from directing ICBC to make payments to the government from its excess optional insurance capital.

With the new legislation, any future surpluses remain with ICBC to be used for the benefit of drivers’ shares, the government.

“For many years, the old government treated ICBC like an ATM,” said David Eby, Attorney General. “It raided ICBC’s profits to the tune of $1.2 billion – seriously eroding ICBC’s financial stability and leading to higher premiums. With these proposed changes, in those years when ICBC does make a profit, those funds will now stay within ICBC so they can be used to make auto insurance rates more affordable, and for other ICBC programs and services that benefit drivers.”

According to the government, its proposed changes to the Insurance Corporation Act will prevent any future provincial government from using ICBC’s excess optional insurance capital to lower its own borrowing requirements while eroding ICBC’s financial position, as was done in the past.

The government shares, this proposed legislation will be introduced in the coming days and upcoming legislation will also deliver the changes necessary to implement the new Enhanced Care coverage starting May 2021.

The Enhanced Care coverage is said to see drivers premiums decrease by 20 percent on average with medical and recovery benefits taking care of them for as long as they need if injured in a crash.

 

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