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

The property at 113 and 161 Island Highway is currently being dismantled as the developer attempts to salvage ‘usable’ lumber for their development application to the City of Parksville. (Mandy Moraes photo)
Development application delayed for high-profile Parksville property

Council refers application to staff for further improvements

(File photo)
RCMP warn of counterfeit bill use in Parksville Qualicum Beach area

Police have received four calls in November regarding bogus bills

The COVID-19 pandemic had an effect on film production on central and north Vancouver Island, says Vancouver Island North Film Commission. Pictured here, production of TV series Resident Alien in Ladysmith earlier this year. (Black Press file)
Film commissioner says COVID-19 cost central Island $6 million in economic activity

Jurassic World: Dominion, Chesapeake Shores among productions halted due to pandemic, says INFilm

Dr. Sandra Allison is Island Health’s medical health officer for the central Island. (Photo submitted)
OPINION: Don’t let fear take over during the pandemic

Central Island medical health officer shares her reflections riding the bus

A woman wears a protective face covering to help prevent the spread of COVID-19 as she walks along the seawall in North Vancouver Wednesday, November 25, 2020.THE CANADIAN PRESS/Jonathan Hayward
911 new COVID-19 cases, 11 deaths as B.C. sees deadliest week since pandemic began

Hospitalizations reach more than 300 across the province

Black Press Media and BraveFace have come together to support children facing life-threatening conditions. Net proceeds from these washable, reusable, three-layer masks go to Make-A-Wish Foundation BC & Yukon.
Put on a BraveFace: Help make children’s wishes come true

Black Press Media, BraveFace host mask fundraiser for Make-A-Wish Foundation

West Vancouver Island’s Ehattesaht First Nation continues lock down after 9 active cases were reported today after a visitor tested positive last week. (Ehattesaht First Nation/Facebook)
Ehattesaht First Nation’s COVID-19 nightmare: nine active cases, a storm and a power outage

The Vancouver Island First Nation in a lockdown since the first case was reported last week

The Ahousaht First Nation confirmed its first case of COVID-19 on Nov. 26, 2020. (Westerly file photo)
Ahousaht First Nation on lockdown over COVID-19

“Emotions are high. The anxiety is high. We want our community to pull through.”

Screenshot of Pastor James Butler giving a sermon at Free Grace Baptist Church in Chilliwack on Nov. 22, 2020. The church has decided to continue in-person services despite a public health order banning worship services that was issued on Nov. 19, 2020. (YouTube)
2 Lower Mainland churches continue in-person services despite public health orders

Pastors say faith groups are unfairly targeted and that charter rights protect their decisions

Penny Hart is emotional outside the Saanich Police Department as she pleads for helpt to find her son Sean Hart last seen Nov. 6 at a health institution in Saanich. (Devon Bidal/News Staff)
VIDEO: Mother of missing Saanich man begs public to help find her son

Sean Hart last seen leaving Saanich mental health facility Nov. 6

A big job: Former forests minister Doug Donaldson stands before a 500-year-old Douglas fir in Saanich to announce preservation of some of B.C.’s oldest trees, July 2019. (B.C. government)
B.C. returning to ‘stand-alone’ forests, rural development ministry

Horgan says Gordon Campbell’s super-ministry doesn’t work

Most Read