The B.C. government has introduced legislation requiring ICBC to advise those who are injured in a crash of the benefits they will receive.
It is just part of the government’s shift to a no fault, or enhanced care model, which the province says will save British Columbians money, dramatically increase benefits, while also reducing the ability to sue for an injury settlement.
Attorney General David Eby says the legislation marks a dramatic shift for the public insurer.
“We are talking about a fundamental restructuring of ICBC’s culture and it’s something Manitoba and Saskatchewan went through,” Eby said.
“In reviewing the information from those provinces one of the biggest challenges they faced was the transition from an insurer that fought people in court to a care-based model. We put in the law that ICBC has an obligation to advise people of what benefits are available to them.”
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3:15 B.C. attorney general David Eby introduces new auto insurance legislation
B.C. attorney general David Eby introduces new auto insurance legislation
The B.C. government announced the major changes to ICBC in February.
Since then the province has heard from critics warning a no-fault system will punish young people, will be a challenge for those without family doctors and will mean those with the worst injuries in crashes will not receive the benefits they need.
But Eby says the province has created a system where ICBC can be held accountable by the recently enhanced Fairness Office and the Civil Resolution Tribunal to deal with disputes around benefits.
“British Columbians deserve peace of mind that if they are injured in a crash, they’ll be looked after, instead of being fought for years in court,” Eby said.
“They deserve low and stable car insurance rates. This bill will achieve both goals, saving people an average of 20 per cent on their insurance and taking care of people if they are injured. It is long overdue.”
6:44 Dave Eby explains ICBC overhaul and move to no-fault system
Dave Eby explains ICBC overhaul and move to no-fault system
The changes are estimated to save the average driver about $400, stating in May 2021.
The no-fault model coverage will also significantly increase the amount of care and recovery benefits available to anyone injured in a crash, providing enough care for a lifetime for those who need it, to a maximum of at least $7.5 million, up from $300,000 today.
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Currently drivers must go to court and win settlements to cover costs associated with crashes.
The most seriously injured will get even more care and recovery benefits, including a new permanent impairment benefit that will provide financial compensation of up to $250,000.
2:04 New government legislation protects ICBC revenues
New government legislation protects ICBC revenues
But economist Nicholas Coleman says the changes will severely restrict how much some British Columbians can receive in wage losses.
Coleman says the unemployed will have wage loss benefits be based on the average earnings of British Columbians, or about $50,000 per year. This means high earners currently out of a job will be hurt by the change.
Stay-at-home parents will not be entitled to wage-loss benefits.
Students and young people will be entitled to wage benefits based on salary at the time of the crash and not based on potential future earnings.
The highest earners can also be compensated for wage loss only up to about $93,000 per year. Those who earn more than this amount will be under-compensated.
“The effect of the proposed scheme will require the residents of and visitors to B.C. to maintain trust that ICBC will not short-change them, when it is much more likely to be the case that ICBC will short-change people, whether it is because of corporate culture, budget pressure, political reasons, or a predisposition to err on the side of awarding conservative losses,” Coleman said.
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The government is continuing consultation with stake holders.
“It’s the goal of an occupational therapist to help clients to return to their daily activities as quickly as possible. But the reality is that it often takes a lengthy period of time to recover from an automobile accident,” Canadian Association of Occupational Therapists, B.C. Branch managing director Tanya Fawkes-Kirby said.
“These changes will provide our clients with better recovery support, for as long as they need it so they can return, as much as possible, to their pre-crash activities.”
The B.C. government is working on rebuilding the public’s trust in ICBC. There are concerns the public insurer will be responsible to both keep rates down while also advising those injured in a class on what benefits they have access to.
The system also reduces the use of personal injury lawyers who help clients navigate an often complicated system.
There is optimism from Disability Alliance BC the changes will provide care people need.
“If a person becomes catastrophically injured in a motor vehicle collision, we want to ensure that they will get the medical treatment and rehabilitative equipment they need,” Disability Alliance BC executive director Justina Loh said.
“Even in situations where a person caused the collision, or was involved in a single-vehicle crash, we are encouraged that severely injured people will be able to access the increased care and benefits for their lifetime.”
MONTREAL – Travel company Transat AT Inc. reported a loss in its latest quarter compared with a profit a year earlier as its revenue edged lower.
The parent company of Air Transat says it lost $39.9 million or $1.03 per diluted share in its quarter ended July 31.
The result compared with a profit of $57.3 million or $1.49 per diluted share a year earlier.
Revenue in what was the company’s third quarter totalled $736.2 million, down from $746.3 million in the same quarter last year.
On an adjusted basis, Transat says it lost $1.10 per share in its latest quarter compared with an adjusted profit of $1.10 per share a year earlier.
Transat chief executive Annick Guérard says demand for leisure travel remains healthy, as evidenced by higher traffic, but consumers are increasingly price conscious given the current economic uncertainty.
This report by The Canadian Press was first published Sept. 12, 2024.
Dollarama Inc.’s food aisles may have expanded far beyond sweet treats or piles of gum by the checkout counter in recent years, but its chief executive maintains his company is “not in the grocery business,” even if it’s keeping an eye on the sector.
“It’s just one small part of our store,” Neil Rossy told analysts on a Wednesday call, where he was questioned about the company’s food merchandise and rivals playing in the same space.
“We will keep an eye on all retailers — like all retailers keep an eye on us — to make sure that we’re competitive and we understand what’s out there.”
Over the last decade and as consumers have more recently sought deals, Dollarama’s food merchandise has expanded to include bread and pantry staples like cereal, rice and pasta sold at prices on par or below supermarkets.
However, the competition in the discount segment of the market Dollarama operates in intensified recently when the country’s biggest grocery chain began piloting a new ultra-discount store.
The No Name stores being tested by Loblaw Cos. Ltd. in Windsor, St. Catharines and Brockville, Ont., are billed as 20 per cent cheaper than discount retail competitors including No Frills. The grocery giant is able to offer such cost savings by relying on a smaller store footprint, fewer chilled products and a hearty range of No Name merchandise.
Though Rossy brushed off notions that his company is a supermarket challenger, grocers aren’t off his radar.
“All retailers in Canada are realistic about the fact that everyone is everyone’s competition on any given item or category,” he said.
Rossy declined to reveal how much of the chain’s sales would overlap with Loblaw or the food category, arguing the vast variety of items Dollarama sells is its strength rather than its grocery products alone.
“What makes Dollarama Dollarama is a very wide assortment of different departments that somewhat represent the old five-and-dime local convenience store,” he said.
The breadth of Dollarama’s offerings helped carry the company to a second-quarter profit of $285.9 million, up from $245.8 million in the same quarter last year as its sales rose 7.4 per cent.
The retailer said Wednesday the profit amounted to $1.02 per diluted share for the 13-week period ended July 28, up from 86 cents per diluted share a year earlier.
The period the quarter covers includes the start of summer, when Rossy said the weather was “terrible.”
“The weather got slightly better towards the end of the summer and our sales certainly increased, but not enough to make up for the season’s horrible start,” he said.
Sales totalled $1.56 billion for the quarter, up from $1.46 billion in the same quarter last year.
Comparable store sales, a key metric for retailers, increased 4.7 per cent, while the average transaction was down2.2 per cent and traffic was up seven per cent, RBC analyst Irene Nattel pointed out.
She told investors in a note that the numbers reflect “solid demand as cautious consumers focus on core consumables and everyday essentials.”
Analysts have attributed such behaviour to interest rates that have been slow to drop and high prices of key consumer goods, which are weighing on household budgets.
To cope, many Canadians have spent more time seeking deals, trading down to more affordable brands and forgoing small luxuries they would treat themselves to in better economic times.
“When people feel squeezed, they tend to shy away from discretionary, focus on the basics,” Rossy said. “When people are feeling good about their wallet, they tend to be more lax about the basics and more willing to spend on discretionary.”
The current economic situation has drawn in not just the average Canadian looking to save a buck or two, but also wealthier consumers.
“When the entire economy is feeling slightly squeezed, we get more consumers who might not have to or want to shop at a Dollarama generally or who enjoy shopping at a Dollarama but have the luxury of not having to worry about the price in some other store that they happen to be standing in that has those goods,” Rossy said.
“Well, when times are tougher, they’ll consider the extra five minutes to go to the store next door.”
This report by The Canadian Press was first published Sept. 11, 2024.
TORONTO – The U.S. Consumer Financial Protection Bureau has ordered TD Bank Group to pay US$28 million for repeatedly sharing inaccurate, negative information about its customers to consumer reporting companies.
The agency says TD has to pay US$7.76 million in total to tens of thousands of victims of its illegal actions, along with a US$20 million civil penalty.
It says TD shared information that contained systemic errors about credit card and bank deposit accounts to consumer reporting companies, which can include credit reports as well as screening reports for tenants and employees and other background checks.
CFPB director Rohit Chopra says in a statement that TD threatened the consumer reports of customers with fraudulent information then “barely lifted a finger to fix it,” and that regulators will need to “focus major attention” on TD Bank to change its course.
TD says in a statement it self-identified these issues and proactively worked to improve its practices, and that it is committed to delivering on its responsibilities to its customers.
The bank also faces scrutiny in the U.S. over its anti-money laundering program where it expects to pay more than US$3 billion in monetary penalties to resolve.
This report by The Canadian Press was first published Sept. 11, 2024.
