B.C.’s Ministry of Finance says that amendments to its insurance legislation will ensure optional auto insurance sold by the Insurance Corporation of British Columbia and private insurers are subject to the same legal requirements.

“We are bringing both acts into line with one another to ensure neither ICBC nor private insurers have a competitive advantage when selling optional insurance to B.C. drivers,” said finance minister Gary Collins. “By making optional insurance sold by ICBC and private insurers subject to the same set of rules, we are further levelling the playing field to increase competition.”

B.C. finance says the amendments do not have any direct impact on insurance premiums or have any effect on the way premiums are calculated. Existing consumer and victim protection measures remain unchanged. “The biggest change for B.C. drivers is that for the first time, they will get a comprehensive written policy from ICBC,” said Collins.

The amendments were subject to a public and industry consultation process during the summer and are expected to take effect in nine to 12 months.

B.C. Finance says that the changes complement the Insurance Corporation Amendment Act 2003, passed in May, which created the legal framework necessary to enhance competition in the optional auto insurance market while retaining ICBC as the sole provider of basic auto insurance. The legislation empowered the B.C. Utilities Commission to regulate ICBC¹s basic auto insurance rates and made ICBC subject to generally the same solvency and market conduct requirements as private insurers.