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

WIND WARNING: Metro Vancouver expecting 100 km/h gusts Saturday night

Environment Canada issues warns of possibly dangerous conditions

Fire crews battling Laidlaw house fire

Neighbours say the family are safe, still unconfirmed by fire department

UPDATE: 24-year-old Lovepreet Dhaliwal ID’d as victim in targeted Abbotsford shooting

Location of shooting the same as where innocent bystander Ping Shun Ao killed in 2015

Warm zone opens for Hope’s homeless population

Two men facing homelessness said they spend 50 hours per week outdoors

Fraser Health asking taxpayers for millions more in health care capital funding

Health authority wants Fraser Valley taxpayers to triple annual contribution to $5.75 million

B.C. cougar kitten rescued after mother struck by vehicle

Conservation Officers find home for young kitten found dehydrated and frostbitten near Williams Lake

Hope hikers encounter wolf near Alexandra Bridge

Wolf sightings uncommon, number of wolves growing in B.C.: conservation officer

Hope drag racer pursuing perfection at the drag strip

Rick Limb’s mission: reliability and consistency

Mother struggles to make rent after robbery outside ER

Gofundme campaign started to cover costs

VIDEO: Thousands join women’s march events across B.C.

Today marks one year since the first Women’s March on Washington

VIDEO: Remember the Voyageurs at Fort Langley

Two-day historical festival underway

Two Canadians, two Americans abducted in Nigeria are freed

Kidnapping for ransom is common in Nigeria, especially on the Kaduna to Abuja highway

Are you ready for some wrestling? WWE’s ‘Raw’ marks 25 years

WWE flagship show is set to mark its 25th anniversary on Monday

B.C. woman who forged husband’s will gets house arrest

Princeton Judge says Odelle Simmons did not benefit from her crime

Most Read