Vancouver, British Columbia — The Insurance Bureau of Canada (IBC) has published an open letter to British Columbia Premier John Horgan, outlining the auto industry’s concerns with Bill 11.
In its letter, IBC highlights a new proposal for offering vehicle damage coverage when a driver is not responsible for an accident. It states the bill will further limit consumer choice, create new barriers that will stifle the already limited competition that currently exists in B.C.’s optional auto insurance market, and it will risk driving other insurers out of its optional auto insurance market entirely.
IBC also offers a new proposal for offering vehicle damage coverage when a driver is not responsible for an accident.
“As part of the move to a no-fault system, Bill 11 creates a new mandatory Basic Vehicle Damage coverage that is only available through the Insurance Corporation of British Columbia (ICBC),” IBC says in its letter. “This product will provide coverage for vehicle replacement and repair when a driver is not responsible for an accident.
“Today, these repairs can be covered by the third-party liability insurance of the driver responsible for an accident, which is open to choice and competition above ICBC’s basic limits.”
In B.C., the Insurance Corporation of British Columbia (ICBC) is a provincial Crown corporation that provides universal compulsory auto insurance (Basic insurance) to drivers in B.C.
Basic insurance rates in the province are regulated by the British Columbia Utilities Commission (BCUC). In addition to providing basic vehicle insurance, ICBC competes with private insurers on various optional vehicle insurance coverages, including extended third-party liability, collision, comprehensive and vehicle storage.
IBC contends that Bill 11’s changes to how vehicle damage is covered “will reduce what little choice drivers have in B.C.’s optional auto insurance market,” says Aaron Sutherland, vice president of IBC’s Pacific region. “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.”