The Province is set to introduce legislation to prevent future governments from directing ICBC to give its excess insurance capital over to the government.
The Province said this move is meant to ensure future surplus ICBC funds are used to benefit B.C. drivers.
“For many years, the old government treated ICBC like an ATM,” said David Eby, Attorney General. “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.”
Additional charges will also be implemented by ICBC in 2021 aimed at lowing insurance premiums.
More: B.C. Government Reforming ICBC (February 6, 2020)
Changes will be proposed to the Insurance Corporation Act to prevent future provincial governments from using excess optional insurance capital from ICBC to lower its borrowing requirements.
According to the NDP Government, the previous Provincial Government took payments from ICBC totalling nearly $1.2 billion 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.”
The B.C. Government said that the proposed legislation will help ensure the long-term financial stability of ICBC.