The Insurance Bureau of Canada (IBC) has addressed an open letter to BC Premier John Horgan, which goes into detail about how problematic the planned no-fault insurance rules for the Insurance Corporation of British Columbia (ICBC) are.
One of the provisions of British Columbia’s new Bill 11 – also called the Attorney General Statutes (Vehicle Insurance) Amendment Act, 2020 – is the establishment of new mandatory Basic Vehicle Damage coverage. Created as part of the province’s transition to a no-fault auto insurance system, the Basic Vehicle Damage coverage will be made available only through ICBC. It will offer coverage for vehicle replacement and repairs when a driver is not responsible for an accident.
IBC believes that the current version of Bill 11 will further limit consumer choice, and make it even more difficult for competition to exist in BC.
“Bill 11 will reduce what little choice drivers have in BC’s optional auto insurance market,” commented IBC Pacific vice-president Aaron Sutherland. “There is no rationale for this expansion of ICBC’s monopoly over vehicle damage insurance. A better, more affordable auto insurance system would allow drivers to purchase this coverage from any insurer they choose.”
To allow more options for consumers, IBC has recommended several amendments to Bill 11, which would make the system similar to Quebec’s own no-fault system – where injury coverages are provided by the government insurer and vehicle damage coverages are provided by private insurers.
In its statement, IBC outlined that if its recommended changes are enacted, the amended Bill 11 “would create a more competitive market for vehicle damage coverage and, most importantly, would improve the affordability of this coverage over the long term.”
Sutherland also added that BC drivers have paid more for insurance than anyone else in Canada due to ICBC’s monopoly of the province’s auto insurance system.
“Canada’s private insurers want to help lower premiums in the province and are committed to working with the government to create a system that works for everyone,” the vice-president said.
