FOR IMMEDIATE RELEASE
April 18, 2005
Consumers’ Association Astounded That ICBC Commits millions To Fund Private Insurers In Ontario
The Consumers’ Association of Canada today expressed outrage that ICBC has, following a year of secret negotiations, committed to pay millions into an insurance pool to subsidise Ontario based private insurers who fail to meet their financial obligations. “We now know why ICBC has not been returning any of its record profits to the good drivers of BC”, said Mr. Cran. Millions of our premium dollars have been reserved to subsidize private insurer bankruptcies in Ontario. This is completely unacceptable.
“ICBC has no mandate to operate outside British Columbia”. Said Mr. Cran. “In any case this corporation is fully backed by the Province and would never make a claim on this insurance pool”. “ICBC does not need to commit multi millions of our surplus premiums to pay out claims for Ontario and Alberta drivers”.
"Over the last three years ICBC has generated two thirds of a billion dollars in profits. These profits should be utilised to reduce rates for the good drivers of BC, who earned them and not to fund the bizarre scheme the Provincial Government refers to as LEVELING THE PLAYING FIELD”, said Mr. Cran.
“The only ones being levelled are BC consumers”, said Mr. Cran. First, we have massive record profits by ICBC. Then we have millions in payouts to ICBC managers and employees. Now we have multi millions allocated to subsidizing private insurers based in Ontario. What’s next, a shiny new ivory tower for ICBC?
“The BC Government needs to immediately order ICBC to withdraw from this scheme to squander our premiums and spend the money at home reducing rates to reward the good drivers of BC”, said Mr. Cran.
For further information: Mr. Bruce Cran, President
Consumers' Association of Canada, Tel. (604) 418-8359