B.C. Premier John Horgan and Attorney General David Eby announce plans for rate changes to ICBC Feb. 6. (Tom Fletcher/News Staff)

Budget 2020: ICBC ‘dumpster fire’ to turn into $86M surplus, NDP say

ICBC operating with $91-million deficit for 2019-2020 fiscal year

The B.C. government’s 2020 budget forecasts a shift from shortfall to surplus for ICBC after a recently announced plan to reduce rates and improve care.

The insurance corporation has carried its debt into the 2019-2020 fiscal year with a $91-million deficit. But that deficit follows two years with more than $1-billion dollar shortfalls.

READ ALSO: B.C. to reduce ICBC rates, further restrict people from suing

The province says it will remove lawyers and legal costs to reduce rates and increase medical care coverage, predicting an average savings of 20 per cent, or $400 per driver starting May 2021.

Those savings are predicted through the implementation of what some lawyers call a “no fault” system – reducing costly battles with personal injury lawyers by expanding the Civil Resolution Tribunal – a tribunal that’s already been handling smaller injury disputes.

The tribunal will expand to handle all ICBC disputes, a change expected to save the insurance company $1.5 billion in legal fees, courtroom experts and other related costs.

Premier John Horgan has rejected the notion that the change creates a “no fault system,” instead saying it re-prioritizes care while still allowing claimants to sue.

READ ALSO: ‘Fault matters’ at ICBC, injured people matter more, B.C. premier says

On Tuesday, Finance Minister Carole James said the government is “getting things back on track.”

“The enhanced care model is really focused on providing better care and making it so that people see a drop in their insurance rates,” she said.

The 2020 three-year fiscal budget predicts an $86-million surplus for ICBC in 2020-2021, with a steady incline over the following years – leading up to a $191-million surplus for 2022-2023.

– With files from Tom Fletcher.



nina.grossman@blackpress.ca

Follow us on Instagram
Like us on Facebook and follow us on Twitter.

B.C. Budget 2020budget

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Women win provincial award for Williams Lake Farmers Market work

Co-market managers Jane Bowser and Barb Scharf share the honour

DOWN TO EARTH: Adjusting to our new normal

Water wise instructor says school shutdown prompts finding ways to reach out to community

WLIB breaks ground on $8 million-plus administration building construction project

Safety precautions will be in place to protect workes on site against COVID-19

COVID-19: Williams Lake 83rd annual Bull Show and Sale goes online only

The event is one ranchers look forward to every year

Sand and unfilled bags available for rural residents to prepare for spring melt

Cariboo Regional District has placed materials at Wildwood and Miocene Volunteer Fire Departments

Here’s how to talk to people who aren’t taking physical distancing seriously

Approach the conversation with empathy says conflict expert

B.C. clears more acute hospital beds as COVID-19 case growth slows

Province holding about 40% of beds empty for peak still to come

As 500K+ apply for emergency benefit, Trudeau says aid coming for Canadians left behind

Canada Emergency Response Benefit provides $2,000 per month

UPDATE: UK PM Boris Johnson moved to intensive care after COVID-19 symptoms worse

He has been quarantined in his Downing St. residence since being diagnosed with COVID-19 on March 26

Travellers, travel agents ‘in agony’ over refund policies and customer service

Many Canadian carriers are offering customers flights rebookings or travel vouchers — but not refunds

Introverted and extroverted kids likely to react differently to COVID-19 restrictions

B.C. child psychologist says your parenting approach can’t be one-size fits all in social isolation

B.C. begins taking submissions for $2M COVID-19 research fund

Rural health, impact of shifting hospital resources among priorities

Wearing non-medical masks can stop spread of COVID-19 before symptoms start: Tam

Health officials had previously not recommended wearing them

Most Read