Legislation preventing the B.C. government from directing ICBC to make payments to the government from its excess optional insurance capital is set to be introduced by the province in the next few days.
According to Attorney General David Eby, This will ensure that any future surpluses remain with ICBC to be used for driver benefit.
“For many years, the old government treated ICBC like an ATM,” explained Eby.
“It raided ICBC’s profits to the tune of $1.2 billion – seriously eroding ICBC’s financial stability and leading to higher premiums. With these proposed changes, in those years when ICBC does make a profit, those funds will now stay within ICBC so they can be used to make auto insurance rates more affordable, and for other ICBC programs and services that benefit drivers.”
Changes will be proposed to the Insurance Corporation Act, preventing future B.C. Governments from using ICBC’s excess optional insurance capital to lower its own borrowing requirements while eroding ICBC’s financial position.
Eby says ICBC was directed under the previous government to make payments, totalling almost $1.2 billion, to the province between 2009 and 2016.
“This legislation to keep ICBC surpluses out of government coffers is another step our government is taking to restore ICBC to a sustainable financial position so that insurance rates can stay affordable,” Eby said.
“Drivers can have confidence in knowing that their auto-insurance premiums are going toward benefiting drivers.”
More information about changes to improve transparency and accountability at ICBC.
Government’s intended changes at ICBC.
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