Photo radar won’t make a comeback as ICBC looks to raise rates

VANCOUVER (NEWS 1130) – A new report suggests that BC drivers could see their auto insurance rates jump nearly 30 per cent over two years unless ICBC sees “significant reform.”

The review from accounting firm Ernst & Young finds that ICBC is not currently bringing in enough money, and that Victoria needs to step in to relieve the crown corporation’s unsustainable financial pressures.

ICBC’s current budget hasn’t been released, but during the last fiscal year, the insurance corporation lost more than $300 million. This report suggests that could top $1 billion within two years, forcing rates to jump.

Key recommendations include bringing back photo radar and also indicates money could be saved by introducing no-fault insurance. However, Attorney General David Eby says that won’t happen.

“However, I want to assure British Columbians that we are not considering photo radar or moving to a no-fault system for auto insurance,” says Eby, who claims it’s just not necessary.

“There are a number of different opportunities that are set out in the report for government looking at people’s driving records where they have problematic driving records. Making them pay more because they are costing the system more just makes sense to us.”

Read the full report below:

The report is aimed at keeping annual hikes in check with inflation.

Other suggestions include making bad drivers pay more, charging more for luxury cars and limiting how much crash victims are compensated after suffering minor injuries. Hiring more police to catch impaired, distracted and speeding drivers is also suggested.

Eby had requested the crown corporation make the report as his first task in his position.

“This report makes it clear that ICBC has been in crisis for years, something which the former Liberal government largely ignored,” says Eby. “Rather than addressing the serious issues facing the corporation, the BC Liberals used insurance fees as a rapidly growing hidden tax. Drivers have been paying the price.”

He adds there are other options that will be reviewed.

“For example, the former Liberal government missed such basic ones, such as ensuring good drivers are rewarded while bad drivers pay more. We will focus on finding answers that put the corporation back on stable financial footing, while maintaining our number one priority of making rates affordable,” added Eby.

Liberal critic Andrew Wilkinson, who was listening to Eby’s news conference outside Canada Place, is somehow trying to blame ICBC’s financial problems on the NDP.

“They’ve just told us what they will not do –looking at potential increases in their ICBC premiums. Where is the leadership here and what are they going to do? They’ve got to tell us.”

Wilkinson claims the New Democrats are wasting time.

“And telling us what they’re not going to do is not the way to run a government,” he says. “They have known about rising rates for years and so, where is the plan that they’ve been working on for four years.”

As for what he’d do differently, Wilkinson insists that’s now the NDP’s problem to solve.