New compensation system for autobody shops part of plan to douse ICBC ‘dumpster fire’

VANCOUVER (NEWS 1130) — A  6.3 per cent hike in basic auto insurance rates on April 1 isn’t the only fix as the province tries to make the Insurance Corporation of British Columbia profitable again.

A new compensation system is in the works for autobody repair shops where costs have escalated, mainly because parts are more expensive and cars are increasingly computerized.

RELATED: Starting Monday, most ICBC claim disputes to be resolved online instead of in court        

Attorney General David Eby says efforts are also being made to better track fraud, both inside and outside ICBC, including a confidential tip line.

“If anybody has information about fraud, they should definitely bring it forward,” he says. “I’ll point out as well that we doubled the number of estimators going to autobody repair shops to ensure that the work quoted is actually the work that’s being done and the work that’s necessary.”

He adds consultations are underway to better streamline repairs.

RELATED: B.C. drivers getting short end of the stick when it comes to insurance: report

“Currently, ICBC is sitting down with service providers to move to a different system. Costs continue to escalate, partly due to increased technology in vehicles, partly due to the fact that we have a very inefficient, not a particularly effective, system to recognize those shops that are putting investments in new technology, equipment and training.”

Other changes taking effect April 1 include capping compensation for minor injuries at $5,500 and shifting more dispute resolutions out of court.

Come September, Eby says bad drivers should expect their premiums to go up, with good drivers potentially seeing their rates go down.

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