ICBC is giving out annual rebates to most drivers in the province – again. But critics say it would be better if insurer lowered rates up front instead.
Garry Begg, the minister responsible for ICBC, said the rebate is possible because of the strong financial position in which the insurer finds itself.
“It is good news,”, told CTV News on Wednesday. “Drivers here in British Columbia are receiving a rebate of $110. And the other part of the good news, is that basic rates will remain frozen until 2026,” Begg said.
This marks the fifth year in a row that rebates will be distributed to millions of drivers – to the tune of $410 million.
The NDP government says better than expected investment returns allow the Crown corporation to give a little back to customers.
“That is a big part,” Begg acknowledged. “Number one, the drivers, number two, the wise investments ICBC has made corporately.”
But given these consistent rebates some suggest it would be more efficient to lower rates on the front end.
“There is obviously an efficiency problem happening,” B.C. Conservative leader John Rustad told CTV News.
“I would much rather see this come off the rates at the beginning as opposed to a rebate going back out to people, because obviously there’s costs associated with doing a rebate back to people.”
Those sentiments were echoed by the Canadian Taxpayers Federation.
“This is the fifth rebate ICBC has sent out since February 2021,” noted Carson Binda with the group. “This shows that they’re overcharging British Columbians.”
Most drivers will get the rebate by the end of next month – unless they paid by cheque – which could mean waiting for the cash until May.
