Rustad to end ICBC’s “bloated monopoly”, if elected: BC Conservatives

BC Conservatives Leader John Rustad calls the Insurance Corporation of British Columbia (ICBC) a “bloated monopoly” and a “broken system” and announces a new plan to end the insurance company’s monopoly across the province.

The party says it will bring fair, competitive car insurance to drivers across B.C.

“On top of that, David Eby and the NDP have stripped away the rights of accident victims to fight for the support they need to rebuild their lives. That’s not just wrong, it’s cruel,” Rustad said, according to a release Wednesday.

The party plans to end the monopoly on basic auto insurance and open up the market.

“By opening up the market, the Conservative Party will bring in new competition, which will lead to lower prices, better customer service, and improved options for all British Columbians,” it said.

Rustad says everyone deserves the freedom to choose an insurance plan that works well for them.

A Lawyer at Acumen Law Corporation in Vancouver Kyla Lee tells 1130 NewsRadio that getting rid of the ICBC monopoly would minimize the restrictions that ICBC currently has.

“Individual insurance companies would be able to make their own policies about how much they pay out, rather than the current restrictions that ICBC has, where it really limits the amount of benefits you get,” she said.

“That’s going to give more options to consumers who want to have affordable insurance rates, more competition in the marketplace to get better outcomes in their insurance cases.”

However, she says she doesn’t think that just ending the ICBC monopoly is going to “restore everybody’s ability to bring an action in court.”

“It would require more than simply allowing competition in the insurance market, because the NDP government amended legislation in BC to actually prohibit bringing a court action related to a car accident claim, except in very limited circumstances,” Lee said.

“There would have to be a legislative amendment to go along with that to give people all of their rights back in insurance cases.”

Lee says she thinks the best option would be to keep ICBC as a public insurer and add the private system to it.

“I think that that type of two-tiered system for insurance is good for consumers because it allows people who want to have a more competitive product that maybe costs more money, but gives them more in terms of payouts for claims,” the lawyer said.

“It also still allows sort of a government-subsidized insurance that would hopefully make it more affordable for individuals who don’t necessarily have the big bucks.”

She says deviating from the current system means people have more options but to move to a completely private system is something that she’s seen not working effectively elsewhere in Canada.

The party says under the current system, younger and older drivers face unfair rates because of their age. The party leader is committing to rate fairness, so no one is priced out by the market.

“Under ICBC’s monopoly, too many young people are being forced off the road by unaffordable insurance premiums,” Rustad said.

“We will make sure that everyone—whether you’re 18 or 80—has access to fair, affordable insurance rates.”

Lee says she’s doubtful that rates are going to get better for younger or older drivers.

“Insurance companies are not in the business of making an affordable product that pays out a lot of money if you’re in an accident,” she said.

“They are doing calculated risk assessments to determine your rates based on the risk you pose on the road, and it continues to be the case that accident rates are highest with inexperienced drivers and older drivers.”

Rustad also condemns Eby’s “decision to strip accident victims of their right to fight for support.”

“Under the NDP’s no-fault insurance system, many individuals with life-altering injuries have found themselves unable to receive the support they deserve,” the party said.

The Conservative Party, if elected, says it will ensure “anyone with life-altering injuries has the right to representation and the ability to fight for the support they need to get their lives back on track.”

“The time for ICBC’s monopoly has come to an end. It’s time for real choice, fair rates, and support for those who need it most. The Conservative Party will deliver an auto insurance system that works for British Columbians, not the government’s bottom line,” the party leader said, according to the release.

Lee says the current system is “terrible in dealing with victims of accidents.” She says it denies compensation for things like people’s pain and suffering.

“They get nothing for it under the current system, it also severely limits the amount of compensation you get for your actual calculable losses, your time off work, the physical injuries that you suffered that require treatment and medical care and prescription pills,” the lawyer said.

“So having a competitive insurance market will force the market to deliver more options for people, as far as coverage and care, and illuminating the prohibition on lawsuits in accident cases will also make it more fair for accident victims to bring an action in court.”

-With files from John Ackermann and Benjamin Bouguerra.