B.C. NDP promises three-year freeze on ICBC insurance rates

The B.C. NDP announced Thursday that it will freeze ICBC basic insurance rates for three years if re-elected on October 24, using the insurer's current financial position to fund increased compensation for serious crash injuries.

Leader David Eby made the announcement in Richmond, noting that ICBC has not increased basic insurance rates for seven years and currently breaks even with significant reserves and positive cash flow. "ICBC is in a position where we can freeze rates and increase compensation for serious crashes at the same time," Eby said. When asked how the freeze would be funded, Eby cited those reserves and the positive cash-flow situation as enabling implementation.

The freeze applies specifically to ICBC's basic insurance rates under the Enhanced Care system, which launched May 1, 2021. The no-fault model provides anyone injured in a crash with care and recovery benefits but eliminates the ability to sue. ICBC has said the model largely removed legal costs from the system and saved $1.5 billion.

The NDP plan directly contradicts the B.C. Conservatives' position. Leader Lorne Doerkson sent a letter September 29 to the Insurance Bureau of Canada, Law Society of B.C., Trial Lawyers Association of B.C., and Canadian Bar Association proposing to replace no-fault insurance with a hybrid model similar to those in Ontario, Alberta, Nova Scotia, New Brunswick, P.E.I., Newfoundland and Labrador. The letter stated: "Accident victims will get back their right to recover for their serious injuries, and government will get out of the legal profession's business," with new legislation promised within one year of a Conservative election.

At a separate Vancouver news conference, Doerkson said the no-fault system has been "very challenging" for residents, particularly those with catastrophic or life-altering injuries. "Obviously we have to provide affordable insurance coverage for all of our residents, but for those that have experienced catastrophic injury and potentially life-altering injury, this program has not supported them well," he said. Doerkson said "all options are on the table, including a hybrid model" and made "no promises" about the specific plan.

The Conservatives have been calling for no-fault system reforms since 2023. Doerkson said his party would open auto insurance to private competition, bring back sensible limits on minor-injury claims, and cited conversations with people who lost children in crashes and received insufficient ICBC compensation for funeral costs.

MoveUp, the union representing ICBC workers, released Doerkson's letter publicly Tuesday. The October 24 election will determine which approach B.C. voters prefer.