ICBC seeks 4.9% insurance rate hike

ICBC has applied for a 4.9 per cent rate increase to its basic vehicle insurance rates to take effect Nov. 1

Crash on Scott Road in Surrey: ICBC says the number of injury claims and the size of awards continue to rise.

ICBC has applied for a 4.9 per cent rate increase to its basic vehicle insurance rates to take effect Nov. 1.

For an average driver who now pays $1,369 a year for basic insurance, the increase would add an extra $36. In its rate application to the B.C. Utilities Commission, ICBC is also seeking four per cent decrease in optional coverage that would reduce that annual bill by $25.

The last rate increase was 11 per cent in 2012, coupled with a six per cent cut in optional insurance where ICBC competes with private insurers.

In an open letter to customers, Mark Blucher, interim CEO of ICBC, says the increase is needed to keep up with increasing bodily injury claims, with higher payouts as more people turn to lawyers to dispute their insurance payouts.

Blucher said injury claim volume is also rising, including crashes involving drivers distracted by smartphones, and more pedestrians and cyclists on roads.

ICBC cut 260 positions last year after an audit of its operations showed its management ranks had swelled by 41 per cent between 2007 and 2011. Blucher said ICBC’s administrative costs amount to five cents out of every premium dollar, with 86 cents going to claim payouts.

Bodily injury claims, for pain and suffering, future care and loss of wages, totalled $1.9 billion in 2012, up $165 million from the previous year and $400 million higher than five years previously.

 

Just Posted

Totem pole, doors unveiled in historic collaboration between Nuxalk Nation and BC Parks

The ceremonies took place in traditional Nuxalk territory (Stuix) - also the home of Tweedsmuir Park

Moms of those killed by illicit opioids take to B.C. Legislature in call for action

Moms Stop the Harm, a nationwide network of families who have lost loved ones to overdoses rally

Trudeau announces bioregional oceans protection agreement in Prince Rupert

Agreement announced in partnership with 14 central and north coast First Nations

115 new wildfires burning across B.C. due to 19,000 lightning strikes

More fires expected to start today, says BC Wildfire Service officials

Local artist Danika Naccarella commissioned to design artwork for Northern Sea Wolf

The Sea Wolf symbolizes family, loyalty and the protection of those travelling their waters.

Pigs crash yoga class in B.C.

First it was goats, now it’s pigs — you can get downward dog with the whole farm in Aldergrove

Mexican bird makes a rare appearance in Bella Coola

The Northern Crested Caracara was spotted galavanting around Bella Coola for several weeks

Judge dismisses DNA request in Cranbrook triple murder case

Dean Christopher Roberts must appeal directly to the federal Minister of Justice, reads ruling.

Yes, we could use a soft drink tax

NDP rejects useful tax advice because it’s not popular

Canada sweeps China in Pacific Rim Basketball Classic

National men’s team beats China twice over weekend in Vancouver and Victoria

Rainbow crosswalk in B.C. defaced 10 days after installation

Surrey’s first rainbow crosswalk has been defaced sometime over the weekend

Closing arguments expected in trial for twice convicted Canadian killer

Crown, defence expected to give closing arguments in Millard murder trial

Canadians undertake the world’s most dangerous peacekeeping mission

A dozen Canadian peacekeepers arrive in Mali as yearlong mission begins

Most Read