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

New seniors care facility in Nelson to be built at Mount St. Francis site

Mount St. Francis hasn’t been in use since 2005

UPDATED: Interior Health to add 495 long-term seniors care beds

Nelson, Kelowna, Kamloops, Vernon and Penticton to receive new facilities

MP Morrison pushes for accountability following federal fiscal update

Kootenay-Columbia parliamentarian says it is time to restart the economy

Provincial COVID-19 data can now be used for B.C. to prepare for a second wave

In the past week, B.C. has seen a slight spike in daily test-positive case counts

Haitian foster children arrive in Nelson after months-long lobbying effort

Marie-Paule Brisson and Sebastien De Marre have parented girls age 12 and 8 since they were babies

B.C. records 62 new COVID-19 cases, two deaths since Friday

Province has just over 200 active cases

Hotel rooms for B.C. homeless too hasty, NDP government told

Businesses forced out, but crime goes down, minister says

Wage subsidy will be extended until December amid post-COVID reopening: Trudeau

Trudeau said the extension will ‘give greater certainty and support to businesses’

B.C. government prepares for COVID-19 economic recovery efforts

New measures after July consultation, Carole James says

Tree planters get help with COVID-19 protective measures

Ottawa funds extra transportation, sanitizing for crews

Trudeau apologizes for not recusing himself from WE decision

He says his and his family’s longtime involvement with the WE organization should have kept him out of the discussions

Beverly Hills 90210 star’s family selling Vancouver Island Beach Resort

You can own Jason Priestley’s Terrace Beach Resort in Ucluelet for less than $5 million

New comet appears in pre-dawn sky above Cranbrook

Neowise can be seen without a telescope over the next couple of weeks

Most Read