The so-called “dumpster fire” that is ICBC just got hotter this week with politicians blaming one another for the $1.3 billion in losses at the auto insurer for the current fiscal year. Worst-case scenario: B.C. drivers will face a $400 premium hike so ICBC will break even.
Among the reasons given for high costs are large payouts for soft-tissue injuries, the high cost of repairs, high executive wages, high number of accidents and expensive cars needing costly repairs.
Of course, making roads safer and charging more for expensive cars and reckless driving are solutions, too, but they are not going to make much of a dent in the problem.
One of the most contentious solutions is capping payouts, which many, including the Trial Lawyers Association of BC, oppose on the grounds that it would hurt people who are seriously injured and deny them quality of life.
Another issue is whether ICBC should just be privatized, a solution that would do nothing to solve the current problem.
No one wants to pay higher premiums but perhaps that’s the cost of doing business in today’s world.
