One effort by B.C.’s government to reduce what it's called the financial “dumpster fire” that has engulfed the province's public auto insurer has hit a snag now that ICBC has partially rolled back an attempt to save money on glass repair, CTV News has learned.
Glass repair shops were required to reduce fees this summer, and attempt to source a dealership’s part – two requirements that would have saved around $9 million a year.
But those businesses complained they couldn’t easily find out dealership prices using an online tool, so they had to resort to phoning dealerships – meaning hours on hold, paperwork costs and delays in getting customers' vehicles back to them.
“We were getting into a ridiculous situation where glass shops were having to phone dealerships and go back and forth, causing no end of frustration of glass shops and dealerships, causing staff to quit,” said Michael Geoghegan of the B.C. Automotive Glass Alliance, which was formed earlier this year and represents the independent glass shops.
On Monday, the Insurance Corporation of British Columbia pressed “pause” on the requirement to get a dealer’s price, known as the Original Equipment Manufacturer price, according to an email obtained by CTV News.
“We recognize that suppliers have experienced service challenges with sourcing parts effectively and efficiently,” wrote Vito Albanese, ICBC’s Senior Director, Claims Strategy and Programs.
“While these service issues are outside of ICBC’s control, ICBC and the government understand this is a pain point for you.”
Glass repair fees will still be reduced, now set at 25 per cent less than the NAGS industry standard, which is still unpopular with the industry.
Eby said that will still mean the majority of the savings will be realized, at $8 million.
“This ended up being a significant administrative burden with the glass firms. So we revised that, we’re working with the glass firms, and we’ll have consultation with them,” he said.
“Government recognizes and the people of BC recognize that we need to make necessary cost savings measures to make ICBC’s finances under control,” he said.
Last fiscal year, ICBC was projected to lose almost $1.4 billion. The current ICBC service plan suggests its 2018/2019 budget will lost $614 million, as it gets a $392 million boost from changes to its basic insurance product.