B.C. attorney general stands by ICBC’s no-fault model, says it’s working

B.C. Attorney General Niki Sharma, whose ministry oversees ICBC, says the Crown corporation’s switch to no-fault insurance has been a success.

“ICBC has really turned their ship around,” Sharma told Global News.

“We’re getting to the point of 96 per cent of claim costs are going to the victim rather than one-third of any settlement going to lawyer counsel. And we’re getting to the state of being able to respond quickly to the needs of the people while keeping our insurance rates low.”

Sharma said ICBC has been able to give rebates for three years in a row, but was not able to say if, or when, rates might come down.

“I know that they’re adjusting to this new model of enhanced care,” she said.

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In ICBC’s latest annual report, its investment portfolio was valued at $18.2 billion. Funds available for investment purposes come primarily from the premiums collected and set aside for unpaid claims.

“That investment income also is subject to volatility in the market, right?” Sharma said.

“So, as they transition to the enhanced care model, it’s about trying to figure out what the sustainable amount is. And the rebate system has been a way to give money back to ratepayers.”

2:30 ICBC CEO stands by no-fault model

Critics say a $110 cheque is little comfort, however, to those who have been seriously injured.

“People are paying good premiums and they’re not getting much back, and seriously injured victims are being denied justice from our court system,” Steve Kooner, the BC Conservative critic for the attorney general, said.

“They’re being denied their expenses, treatment and accountability.”

Sharma said she takes the concerns seriously and said a review of the no-fault insurance model by an independent committee is coming in the spring.

“What they will do is that once they’re formulated, they design their stakeholder engagement, and usually, there is an opportunity for people all across the province to give their perspectives,” she said.