B.C. Public Safety Minister Mike Farnworth defends government actions in the legislature, Feb. 19, 2020. (Hansard TV)

B.C. Public Safety Minister Mike Farnworth defends government actions in the legislature, Feb. 19, 2020. (Hansard TV)

ICBC applies for 15% rate decrease as lawyers pushed out

Resolution tribunal to determine most injury awards

The Insurance Corp. of B.C. is applying for a 15 per cent rate decrease for its monopoly basic vehicle insurance as the B.C. government’s changes to eliminate most of the costly lawsuits against the province’s auto insurer take effect next year.

Public Safety Minister Mike Farnworth says the rate cut, subject to approval of the B.C. Utilities Commission, will be a substantial step to delivering on a promised 20 per cent reduction in insurance costs. ICBC is also cutting its optional insurance rates starting Feb. 1, 2021, and the rate reductions should start showing up on ICBC renewals.

ICBC got approval for a 6.3 per cent rate increase in January 2019, the latest increase as the province prepared to bail out the corporation with $1 billion to cover a deficit caused by ballooning crash and injury awards and court costs.

RELATED: B.C. restricts ICBC lawsuits, promises rate cut

RELATED: Province bails out ICBC, B.C. Hydro in 2020 budget

The new injury coverage, which the government calls Enhanced Care, takes effect on May 1, 2021. When it takes effect, ICBC customers are told to expect a one-time refund.

“It will be calculated using the difference between a driver’s current Autoplan coverage and the new, lower-cost Enhanced Care coverage, for the portion of their existing policy that extends past May 1, 2021,” Farnworth and ICBC president Nicolas Jiminez said Dec. 14.

Farnworth was assigned responsibility for ICBC with the formation of the new majority NDP government, after Premier John Horgan and Attorney General David Eby pushed through the changes over the objections of the Trial Lawyers Association of B.C. Eby first moved to limit expert witnesses in injury cases, prompting a legal challenge.

Horgan and Eby have rejected the lawyers’ description of the new system as “no fault,” pointing out that people can still be sued in some circumstances.

“You can’t run into someone without consequences,” Horgan said in announcing the new system in February 2020. “Your rates will go up. If you are found criminally responsible or criminally negligent, you can be sued.”


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC politicsICBC

Just Posted

Do Your Part Recycling Co is celebrating 15 years of its operation in Terrace this May. (Binny Paul/Terrace Standard)
How a homegrown Terrace business became a vital cog in the regional recycling initiative

Do Your Part Recycling owner Kasey Lewis on how they started 15 years ago

Construction continues on Coast Mountain College’s student residence on May 12, 2021. (Ben Bogstie/Terrace Standard)
VIDEO: Work continues on major projects at Coast Mountain College

Price tag of $35 million set for housing, substantial renovations

Terrace city council gave first and second reading to zoning amendment bylaws for the proposed transload facility located next to Keith Ave. (Image courtesy Hatha Callis, Progressive Ventures Group)
Next inland port public hearings set for June

Terrace council gave first and second reading to establish new zone, rezoning application

Skeena Valley Farmers Market will host Northern Health’s COVID-19 vaccination booth on May 15. ( Skeena Valley Farmers Market/Facebook)
Northern Health to set up COVID-19 vaccine booth at Skeena Valley Farmers Market

The booth will be set up on the south side of the market towards Park Ave. on May 15

Both Lanfear Hill, pictured here, and Kalum (Skeenaview) will be closed at different times this evening going into Friday morning. (File photo)
Two hills to be temporarily closed tonight

Pipe inspections first on Lanfear and then on Kalum

Daily confirmed COVID-19 cases reported to B.C. public health, seven-day rolling average in white, to May 12, 2021. (B.C. Centre for Disease Control)
B.C. preparing ‘Restart 2.0’ from COVID-19 as June approaches

Daily infections fall below 500 Friday, down to 387 in hospital

The warm weather means time for a camping trip, or at least an excursion into nature. How much do you know about camps and camping-related facts? (John Arendt - Summerland Review)
QUIZ: Are you ready to go camping?

How many camp and camping-related questions can you answer?

On Friday, May 14 at Meadow Gardens Golf Club in Pitt Meadows, Michael Caan joined a very elite club of golfers who have shot under 60 (Instagram)
Crowds at English Bay were blasted with a large beam of light from an RCMP Air-1 helicopter on Friday, May 14. THE CANADIAN PRESS/Marc Grandmaison
Police enlist RCMP helicopter to disperse thousands crowded on Vancouver beach

On Friday night, police were witness to ‘several thousand people staying well into the evening’

People shop in Chinatown in Vancouver on Friday, February 5, 2021. THE CANADIAN PRESS/Jonathan Hayward
Vancouver community leaders call for action following 717% rise in anti-Asian hate crimes

‘The alarming rise of anti-Asian hate in Canada and south of the border shows Asians have not been fully accepted in North America,’ says Carol Lee

Sinikka Gay Elliott was reported missing on Salt Spring Island on Wednesday, May 12. (Courtesty Salt Spring RCMP)
Body of UBC professor found on Salt Spring Island, no foul play suspected

Sinikka Elliott taught sociology at the university

The first Black judge named to the BC Supreme Court, Selwyn Romilly, was handcuffed at 9:15 a.m. May 14 while walking along the seawall. (YouTube/Screen grab)
Police apologize after wrongly arresting B.C.’s first Black Supreme Court Justice

At 81 years old, the retired judge was handcuffed in public while out for a walk Friday morning

Dr. Steve Beerman, of Nanaimo, shows off his Dr. David Bishop Gold Medal, awarded for distinguished medical service. (Karl Yu/News Bulletin)
Queen presents Vancouver Island doctor with award for global drowning prevention

Dr. Steve Beerman receives Royal Life Saving Society’s King Edward VII Cup at virtual ceremony

Former UFV Cascades wrestling coach Arjan Singh Bhullar is now the ONE heavyweight champion after defeating Brandon Vera via TKO in round two on Saturday in Singapore. (ONE Championship)
Former UFV wrestling coach wins MMA championship

Arjan Singh Bhullar captures ONE heavyweight title, first Indian origin fighter to achieve honour

Most Read