ICBC's insurance model targeted in B.C. election pledges

ICBC's insurance monopoly and no-fault insurance model have both been targeted in election pledges as the province nears the midway point of the election campaign, ahead of the Oct. 19 vote.

At a news conference in Vancouver Thursday, Conservative Party of B.C. Leader John Rustad told reporters his party would end the Insurance Corporation of British Columbia's (ICBC) monopoly on basic auto insurance, a plan he says would bring in competition, drive down costs and improve services.

"Any time you've got competition, you're going to get the best prices," he said.

B.C. NDP Leader David Eby, who was previously the minister in charge of ICBC, has repeatedly pushed back on the idea of introducing new insurance models into the province, arguing it would drive up rates.

In the past, the NDP has accused the previous B.C. Liberal government — of which Rustad was a member — of poorly managing ICBC during the party's 16 years in power, amassing a deficit of $1.3 billion.

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In its own platform released Thursday, the NDP party said it has successfully saved drivers an average of 20 per cent a year with reforms made to ICBC, and accused Rustad of wanting to turn things over to private insurance companies that would "charge two or three times higher."

Rustad said ICBC has "lost its edge," but that he still believes it could be competitive.

"[That's] why we want to build ... competition and let ICBC be able to structure itself as competitively as possible so that we are seeing the best rates we can."

No-fault insurance model challenged

The Conservatives had already pledged to exempt people who suffer life-altering injuries in crashes from ICBC's no-fault insurance model, saying it's unfair to accident victims to curtail opportunities to sue for damages.

An equivalent to no-fault would remain in place for minor injuries, Rustad said.

"For major injuries, we will allow ... an individual to have somebody to represent them and to fight for what they need to be able to recover fully."

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Dozens of people turned out in Vancouver and Victoria on Sept. 2 to protest against ICBC's no-fault insurance, which critics say is leaving some crash victims behind. The goal of the new system, introduced in 2021, is to cut down on legal costs and lower premiums for drivers, ICBC says.

No-fault insurance was introduced in May 2021 as a way to reduce rates, lower debt, limit legal costs and improve care for accident victims.

The NDP has said the move worked. It announced earlier this year that the financial improvement at ICBC means drivers will get an insurance rebate of $110 for 2024, while basic renewal rates will remain frozen until at least March 2026.

But Rustad said in a policy statement in December that people who suffer life-altering injuries in accidents should be exempt from the no-fault regime and be allowed to "pursue fair and reasonable compensation in the British Columbia court system."

The B.C. Green Party has also taken aim at the current ICBC model in its platform, saying the system has "not lived up to what was promised."

The party said there have been "too many cases" where people injured in car crashes have been unable to get necessary medical care because of limitations in the system. It said the Greens would "reorient the culture of ICBC, to require it to focus on care rather than minimizing payouts."

The party also said it would work to ensure pedestrians and cyclists injured by vehicles are fully covered by the care system.