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

Annual Walk for Alzheimer’s goes online on May 31

Event held every year in Abbotsford now raising funds through virtual event

UPDATE: Man from Mexico reported missing in Abbotsford has been located

Police report that Antonio Fernandez, 29, has been found safe and sound

Pedestrian struck in late-night collision on Highway 1 in Hope

RCMP were on scene at the incident near Flood Hope Road where traffic was rerouted for eight hours

Mission prison COVID-19 outbreak declared over

Dr. Bonnie Henry hails work done to halt outbreak, which saw more than 130 people contract COVID-19

Man who broke into Abbotsford post office receives four more months in jail

Gary Patrick Richard sentenced for break-in and mail theft from April 20

Feds looking at ways to reunite families amid COVID-19 border restrictions with U.S.

Some families with members of dual-citizenship have become separated due to the pandemic

Facing changes together: Your community, your journalists

New platform allows readers to make a one-time or ongoing donation to support local journalism

Man last seen walking out of Royal Columbian Hospital found dead

It is unclear how or why Gavin Deloes was able to leave the New Westminster hospital

VIDEO: Humpback whales put on quite a show

The ‘playful’ pod lingered by a Campbell River tour operator’s boat for quite some time

Large cruise ships barred from Canadian waters until end of October: Garneau

Last year 140 cruise ships brought more than two million visitors to Canadian ports

Man who bound, murdered Vancouver Island teen still a risk to public: parole board

Kimberly Proctor’s killer is still ‘mismanaging emotions,’ has had ‘temper tantrums’

Getting hitched at historic B.C. gold rush town still on table during COVID-19 pandemic

Micro-weddings, online visits, offered at Barkerville Historic Town and Park

VIDEO: Police look for suspect seen tripping elderly woman in Burnaby

The elderly woman was walking near the SkyTrain station when she was randomly tripped

Revelstoke woman finds welcoming letter on her Alberta-registered truck

There have been multiple reports online of vandalism to vehicles with Alberta licence plates

Most Read