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

Vehicle goes up in smoke in Kelowna garage

Fire department on-scene in 200 block of Poplar Point Drive near Knox Mountain

COSAR rescues two lost hikers from Okanagan Mountain Park

Two male hikers were overdue from a hike they left for on the morning of March 28

Okanagan Spirits donating free sanitizer to those most at risk during COVID-19 pandemic

The Okanagan distillery has ceased spirits operations and has produced over 3,000 litres of sanitizer since March 26

RCMP, firefighters rally in support for health care workers in Kelowna

Pandosy Street was packed with supporters Saturday night

Social media a blessing and a curse during time of crisis: B.C. communication expert

‘In moments of crisis, fear is very real and palpable,’ says SFU’s Peter Chow-White

B.C. issues guidelines about distancing, reusable bags to grocery stores amid COVID-19

Hand sanitizer and markers to keep lines two metres are apart are needed, province says

No plans to call in military right now to enforce COVID-19 quarantine: Trudeau

Trudeau unveils $7.5M for Kids Help Phone, $9M for vulnerable seniors amid COVID-19

Okanagan women spending quarantine making masks

Group at Predator Ridge, and a colleague in Vernon, keeping busy making surgical masks for others

QUIZ: How much do you know about the Olympics?

Put your knowledge to the test with these 12 questions

B.C. announces $3M for food banks to increase capacity during COVID-19

It is not clear how much of the money will flow towards Greater Victoria food banks

B.C. is seeing the highest rate of COVID-19 recovery in Canada, and there’s a few reasons why

British Columbia was one of the first to see rise in COVID-19 cases, and has also switched up testing

World COVID-19 update: U.S. expects 100,000 deaths; Oregon declares disaster

Comprehensive update of world news for Sunday, March 19.

Second million-dollar lotto ticket sold in Okanagan

Twice, in less than a month, somebody won Guaranteed Match Number prize with ticket bought in Vernon

Most Read