Attorney General David Eby addressed reports Monday morning that ICBC is projecting a $1.3-billion loss for the 2017/18 fiscal year, calling the situation a “financial dumpster fire.”

On Sunday, the insurance company posted its third quarter financial results, which included a net loss of $935 million in the first nine months and a projected $1.3-billion loss by the end of the fiscal year.

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“This is quite simply a financial dumpster fire,” Eby said. “British Columbians deserve the truth, no matter how brutal the news is. Years of reckless decisions by the former government have undermined ICBC’s ability to deliver low cost insurance to British Columbians.”

Eby blamed the company’s financial woes on mismanagement by the previous government, saying that ICBC was being “politically directed in a way that was not sustainable, including government taking more than $1 billion out of the corporation.”

He said the Liberals were warned three years ago that the company was heading for financial trouble and received recommendations from an independent consultant. Eby said the recommendations were removed from the version of the report that was released to the public.

“They knew the dumpster was on fire but they pushed it behind the building instead of trying to put the fire out,” he said.

“ICBC must become financially sustainable to keep rates affordable for British Columbians.”

Eby said insurance premiums would have to go up by $400 just to get ICBC to break even.

“Obviously British Columbians can’t afford that and we won’t let that happen,” Eby said, adding that the NPD government will be announcing major reforms in the coming weeks with the aim of making the insurance company financial sustainable.

He said “significant initiatives” will be introduced in the legislature this spring “that will keep rates affordable and see high-risk drivers pay more while low-risk drivers pay less.”

Eby said the government is currently not considering going to a no fault insurance system but did say that a cap on minor injury claims, something he acknowledged might not be a popular decision, and pledged to keep rates affordable.

There has been a 250 per cent increase in awards for minor injuries in the last 10 years, he said, a rate that is not sustainable.

“I acknowledge there will be unhappy groups no matter what we do.”

Eby said the government will look at ways to help ICBC close more claims in a timely manner, including increasing the number of adjusters and staff. He said there are currently a significant number of open claims and the cost of claims increases the longer they are open.

The attorney general added that he has asked current ICBC chair Joy McPhail to look at the payment and bonus structure for executives.

“Because obviously there is a very serious issue at ICBC and, to say the least, bonuses are not appropriate,” he said.

@JessicaEKerr