Injury claims, not collision repairs, are the biggest pressure on ICBC rates. (Black Press files)

ICBC overbilling for crash repairs not the problem, dealers say

Collision repair shops reject union claim of inflated costs

The president of B.C.’s Automotive Retailers Association has rejected suggestions by an ICBC union that the public car insurance company’s financial pressures are partly due to overbilling on collision repairs.

With ICBC undergoing an audit by the province to find savings and curb rising vehicle insurance rates, Ken McCormack said there is no evidence behind allegations by the union representing ICBC estimators that repair shops using the ICBC Express claim program are producing unnecessary costs.

“Overbilling doesn’t happen and really can’t happen with the province-wide estimating system that won’t allow an accredited shop to submit a repair estimate that doesn’t meet established criteria,” McCormack said Monday.

ICBC is facing a deficit and a rate increase of 6.4 per cent on basic coverage and 9.6 per cent on optional insurance takes effect this month. The NDP government approved the rate increase and ordered a review of ICBC operations to seek savings.

RELATED: ICBC rates going up this month

ICBC financial statements show increasing costs of injury claims. From 2009 to 2016, claims costs rose 80 per cent, with the steepest increases for minor injuries and legal costs.

McCormack noted that the latest ICBC financial reports show collision repair costs are only 15 per cent of the total costs to ICBC.

“As suppliers, we are already as lean as we can be and there simply aren’t any more areas where we can lower costs and remain viable,” McCormack said. “The open door to fraud is with the bodily injury component and the government should be looking in that direction.”

Attorney General David Eby has ruled out adopting a no-fault insurance system that would assign a value to injuries by type and avoid the legal haggling that currently accompanies many bodily injury claims.

BC legislatureICBC

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Ladysmith man arrested in Saanich after towed sawmill draws attention

Police located the man thanks to social media and a keen-eyed witness

Killer whales cause a scene

WHALE OF A TALE Art Carlyle captured these images of killer whales… Continue reading

Ladysmith man shocked out of his seat after $50,000 Keno win

Larry Salmond plans to purchase a new RV with his winnings

Green Party pins Nanaimo-North Cowichan riding hopes on Istace

Leader Furstenau in town for the announcement of Chemainus businessman’s candidacy

Ladysmith shows strong support for COVID version of Tour de Rock

Senior donates $8,000 from proceeds of year-long bottle collections

B.C.’s top doctor encourages Halloween costumes to include masks

Dr. Bonnie Henry will soon be releasing guidelines on how to safely trick-or-treat this Halloween

Reincarnation, baby! Music-making B.C. couple celebrate ‘miracle’ pregnancy

‘I (said) to Adam, ‘I really think this is your brother reincarnated,’ Elise Estrada says

Survey finds doctors worry supplies of flu vaccine, PPE will lag demand

Canadian health officials have said additional flu vaccines have been ordered to meet expected demand

Search suspended for Indigenous elder last seen mushroom picking in northwest B.C.

Mushroom picker Thomas (Tommy) Dennis has been missing since Sept. 16

Ahead of likely second wave, 60% of Canadians relaxing COVID-19 measures

Proportion of Canadians not following safety measures has dropped by 3 per cent in the past two weeks

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Canada’s population tops 38 million, even as COVID-19 pandemic slows growth

Immigration, the top population driver, decreased due to the pandemic

Lightning strike: Tampa Bay blanks Dallas 2-0 to win Stanley Cup

Hedman wins Conn Smythe Trophy as playoff MVP

16 MLAs retiring from B.C. politics add up to $20M in pensions: Taxpayers Federation

Taxpayers pay $4 for every dollar MLAs contribute to their pensions

Most Read