Stone claims NDP took easy route in increasing ICBC rates

KAMLOOPS — The 6.4% basic rate increase announced on Tuesday by David Eby, the minister responsible for ICBC, is not sitting well with the man who used to hold that title, Todd Stone. 

“We were successful over a previous 10-year period at keeping the combined rate of increase down to less than 17% for B.C. motorists,” said Stone. “That’s basically in line with inflation. We have seen in one month with the NDP in power that the combined rate increase is going to be 8%.”

That amounts to an average of $130 per motorist starting Nov. 1, but it’s an increase the NDP felt was needed, saying ICBC is in “grave financial crisis” thanks to the Liberals mismanaging the Crown Corporation.

“This government took so much money out of ICBC over just the last six years, over a billion dollars, the cupboard is bare,” said Eby on Tuesday. “There’s no more money for any government to take from ICBC.”

Stone says the ndp could’ve kept rate increases to 4.9% — as the Liberals did the last five years — had the government looked into implementing recommendations put forth in a 203-page report compiled by Ernst & Young this year. 

Question of the Week

Do you have confidence in the vote-counting carried out by Elections BC?

Oct 28, 2024

Week in Review

Week in Review: Week of Oct. 21

Oct 26, 2024

Two and Out

PETERS: Facing caucus revolt, Justin Trudeau could learn from Joe Biden

Oct 25, 2024

“There are changes that could be made in terms of the scope of coverages that are provided,” said Stone. “There are some good opportunities on the litigation and legal side of the equation in terms of looking at how can we speed up the process of claims. How do we get more claims to be settled without having to go to trial.”

The NDP declined recommendations in that same report that a 30% rate increase over two years would be needed. Instead, the new government went with 8% this year to begin, but even that, Eby noted, will only drop the projected ICBC losses to $360 million — down from $560 million last year.

According to Stone and the Liberals, the severe deficit in ICBC can be blamed on increased crashes and claims.

“There’s more claims per collision, which is a disturbing trend we see in British Columbia,” said Stone. “The cost of the most minor collisions are escalating at a rapid clip, far greater than even the cost of more serious claims. All of this is resulting in tremendous cost pressures, which ultimately has to flow through to rates.”

Eby says it will take a number of years to turn ICBC’s financial situation around, and that will start with an audit of the Crown Corporation.