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

‘Overwhelming, incredible’ support for foreign workers following West Kelowna COVID-19 outbreak

‘…Our team seems to be recovering well — symptoms are resolving’

FortisBC offers 90-day bill deferrals to customers impacted by COVID-19

Customers can apply for the relief program through the utility’s website

RCMP call on kids to name latest foal recruits

The baby horses names are to start with the letter ‘S’

North Okanagan bands together in support against COVID-19

New group launches website with tools to help endure crisis

VIDEO: KLO middle school teachers shoot video to show support for students at home

KLO teachers Kayla Rose and Tonia Macgregor were the minds behind the gesture

WATCH: Salmon Arm artist hosts virtual art show amid COVID-19

Roxi Hermsen’s show “Into the Cosmos” is a tribute to her father Bill Sim

UPDATE: Coronavirus concerns prompt event cancellations across the Okanagan

This is a running list of events cancelled across the Okanagan

HERGOTT: COVID-19 and ICBC

Paul Hergott is a personal injury lawyer based in West Kelowna

COVID-19: Armstrong gym fined $345 after failure to close

The fitness centre was issued a ticket a day after province ordered all gyms to close

Bus rider who travelled to Golden tests positive for COVID-19

The passenger travelled from Calgary to Golden on March 15

Armed robbery of legal grow-op in Sicamous ends in arrest near Enderby

Residents alarmed over increased police presence Tuesday morning

Wildfire burns out-of-control on Adams Lake band land in the Shuswap

BC Wildfire Service reports Shuswap two-hectare fire is not threatening structures

COVID-19: Vernon homeless shelters combine in curling club

Gateway and Our Place shelter sites housed under one roof amid pandemic

COVID-19: Don’t get away for Easter weekend, Dr. Bonnie Henry warns

John Horgan, Adrian Dix call 130 faith leaders as holidays approach

Most Read