B.C. Attorney General David Eby announces overhaul of ICBC rates and handling of claims at the B.C. legislature, Feb. 6, 2018. (B.C. government)

B.C. Attorney General David Eby announces overhaul of ICBC rates and handling of claims at the B.C. legislature, Feb. 6, 2018. (B.C. government)

ICBC improving, but not yet out of the red, B.C. minister says

David Eby refutes reports of staff increase, ‘dividend’ to province

The Insurance Corp. of B.C. is reducing staffing and other costs to the point where it’s climbing out of deficits and stabilizing its operations, Attorney General David Eby said Tuesday.

Eby said he was surprised to see the extent of legal costs when ICBC reported its detailed financial figures for the 2018-19 fiscal year, and they validate the NDP government’s decision to cap minor injury awards and attempt to restrict expert witnesses in major injury lawsuits.

“This is the first year we’ve reported these numbers, so they definitely were eye-opening for me,” Eby told Black Press. “When you look at the amount of money that was going to the plaintiff law firms, and assuming a 20- to 30-per-cent contingency fee agreement, that ends up being about half a billion dollars in just lawyers’ fees. It’s a very significant cost to both ICBC and motorists, and it should be a concern to people.”

Eby rejected media reports suggesting that staffing levels and salaries above $150,000 per year have increased, describing a misunderstanding of financial reports released by the Crown corporation last week.

“When I took over ICBC in 2017-18, there were too many people earning high-level category salaries,” Eby said. “We’ve reduced every category above $100,000 by a minimum of 10 per cent, and for those above $150,000, by more than 30 per cent.”

Another issue Eby addressed with reporters at the legislature was the emergence of a possible return to surplus in ICBC’s current year, which he said has been incorrectly reported.

“The second point of frustration I have is the suggestion that government is taking dividends from ICBC, or is planning on taking dividends from ICBC,” Eby said. “The books reflect the hope, and at this point it is a hope, that ICBC will be revenue positive. When ICBC is revenue positive in government’s consolidated books, it reflects as money coming to government. It’s how it’s reported in the books. It doesn’t mean it’s a dividend paid by ICBC.”

RELATED: Share crash data, private insurers urge ICBC

RELATED: New drivers pay most for optional insurance

RELATED: B.C. government bails out ICBC, BC Hydro

The province’s current budget, presented Feb. 19 by Finance Minister Carole James, included billion-dollar bailouts of ICBC and B.C. Hydro. By February ICBC was projecting a $1.18 billion loss for the fiscal year that ended March 31, adding up to a total loss over two years of $2.5 billion.

Legal fees is one area where ICBC is seeing an improvement for 2019-20, along with a slight decrease in crash figures that have climbed to record levels.

“We’re seeing a slight decrease in the representation rate, the number of people who are hiring lawyers, which is good news,” Eby said. “We’re seeing the first quarter, where ICBC has reported near break-even.”


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC legislatureICBC

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

Just Posted

General voting day for the Terrace trustee by-election is Saturday, March 6 at the Terrace Sportsplex Multipurpose Room from 8 a.m. to 8 p.m. (Black Press file photo)
Terrace trustee by-election: Meet the candidates

General voting day is March 6 at the Terrace Sportsplex Multipurpose Room from 8 a.m. to 8 p.m.

Terrace RCMP arrested two men on Feb. 17 after they were told to leave the Sunshine Inn and then became combative with police. (Black Press Media File Photo)
Terrace RCMP arrest men visiting a person in COVID-19 isolation

Men attempted to strike police with a chair, threatened to kill officers when told to leave

The Terrace & District Chamber of Commerce hosted a virtual all candidates forum for the Coast Mountains School District trustee by-election on Feb. 23, 2021. (Screenshot/Terrace & District Chamber of Commerce Facebook)
Terrace trustee candidates lay out top priorites during virual all candidates forum

All candidates forum was held virtually on Feb. 23, 2021

(Phil McLachlan/Capital News)
Murder charge laid in February 2020 stabbing death of Smithers man

Michael Egenolf is charged with the second-degree murder of Brodie Cumiskey

(Phil McLachlan/Capital News)
Murder charge laid in February 2020 stabbing death of Smithers man

Michael Egenolf is charged with the second-degree murder of Brodie Cumiskey

Health Minister Adrian Dix looks on as Dr. Bonnie Henry pauses for a moment as she gives her daily media briefing regarding COVID-19 for British Columbia in Victoria, B.C. THE CANADIAN PRESS/Jonathan Hayward
7 additional deaths and 542 new COVID-19 cases in B.C.

Provincial health officials reported 18 new COVID-19 cases linked to variants of concern

The City of Vancouver estimates there are 3,500 Canada geese in the city right now, and that number is growing. (Bruce Hogarth)
Help tame Vancouver’s Canada goose population by reporting nests: park officials

The city is asking residents to be on the lookout so staff can remove nests or addle eggs

Chief Justice Christopher Hinkson (Office of the Chief Justice)
Judge questions whether B.C.’s top doctor appreciated right to religious freedom

Lawyer for province says Dr. Henry has outlined the reasons for her orders publicly

A sample of guns seized at the Pacific Highway border crossing from the U.S. into B.C. in 2014. Guns smuggled from the U.S. are used in criminal activity, often associated with drug gangs. (Canada Border Service Agency)
B.C. moves to seize vehicles transporting illegal firearms

Bill bans sale of imitation or BB guns to young people

BC Housing minister David Eby is concerned that Penticton council’s decision to close a local homeless shelter will result in a “tent city” similar to this one in Everett, Wa. (Olivia Vanni / Black Press file)
‘Disappointed and baffled’ B.C. housing minister warns of tent city in Penticton

Penticton council’s decision to close a local homeless shelter could create tent city, says David Eby

A recently published study out of UBC has found a link between life satisfaction levels and overall health. (Pixabay)
Satisfied with life? It’s likely you’re healthier for it: UBC study

UBC psychologists have found those more satisfied with their life have a 26% reduced risk of dying

A vial of some of the first 500,000 of the two million AstraZeneca COVID-19 vaccine doses that Canada has secured through a deal with the Serum Institute of India in partnership with Verity Pharma at a facility in Milton, Ont., on Wednesday, March 3, 2021. THE CANADIAN PRESS/Carlos Osorio - POOL
Federal panel recommends 4-month gap between COVID vaccine doses due to limited supply

The recommendation applies to all COVID-19 vaccines currently approved in Canada

A vial of Oxford-AstraZeneca COVID-19 vaccine is pictured at a family doctor office, Thursday, Feb. 25, 2021 in Paris. THE CANADIAN PRESS/AP -Christophe Ena
Trudeau ‘optimistic’ that timeline for rollout of COVID vaccines can be accelerated

Canada set to receive more than 6M COVID-19 vaccine dose than initially expected, by end of March

Beginning late Tuesday, anti-pipeline protesters blocked the intersection of Hastings Street and Clark Drive in Vancouver. (Instagram/Braidedwarriors)
Demonstrators block key access to Vancouver port over jail for pipeline protester

They group is protesting a 90-day jail sentence handed to a fellow anti-pipeline protester

Most Read