B.C. repair shops say new ICBC policy will cost them ‘hundreds of thousands’

BC’s Automotive Retailers Association is calling on ICBC to rescind a recent policy that it says would see repair shops pocketing less and the Crown corporation getting more.

The association wants ICBC to rescind a policy that allows the corporation to collect up to 25 per cent in discounts for windshield repairs that would otherwise go to the shops.

The Crown corporation is also asking shops to source the cheapest options when replacing windshields to reduce costs.

Owner of Suncreek Auto Glass in Surrey, Kelly Fleming, says the new policy could mean a loss of 25 per cent of their yearly income.

“How this is going to affect us is unknown for me right now,” he said. “It’s pretty black and white: buy your glass at wholesale, sell it for retail, somewhere in between, you hope to make a profit, and with that profit, you pay your people.”

WATCH: Body shops strike back at ICBC over deficit

1:59 Body shops strike back at ICBC over deficit

ICBC says the policy was necessary to help reduce costs.

“The changes were identified by government and ICBC to help reduce the pressures on auto insurance rates for customers and improve the long-term financial sustainability of ICBC,” read a statement from ICBC. “Collectively, these changes will help reduce our material damage costs by approximately $9 million per year — a move that will directly benefit British Columbians by easing the pressure on their rates.”

But the association estimates this will leave many shops with a huge loss in profits, noting that sourcing out the cheapest products, often leads to a delay in repairs.

“This attack on our industry from ICBC is going to cost us thousands and thousands, hundreds of thousands of dollars, and jobs,” said Cam Lesley from All West Glass in Prince George. “We’re going to have a tough time employing these people and bringing up through our system.”

ICBC admits that the insurance corporation is under extreme financial burden and the new policy is in place to help their debts.

“It’s no secret that ICBC is under enormous financial pressure from the rising number of crashes happening across B.C. – more than 900 per day – and the associated rising number of claims and costs. Action needs to be taken to address these pressures and that’s just what government and ICBC are doing,” read the statement.

WATCH: Eby talks about future of ICBC at Board of Trade

6:01 Eby talks about future of ICBC at Board of Trade

“For people who are suggesting that this is some kind of attack, it is absolutely not. The issue is the financial realities at ICBC,” said B.C.’s Attorney General David Eby. “ICBC will only pay now for the cost of the replacement part or a part from a manufacturer and they will no longer pay for the replacement of mouldings that are not replaced on windshields.”

He said the changes mean ICBC is now rightfully paying the price other individuals and organizations were previously paying.