News

ICBC seeks 4.9% insurance rate hike

Crash on Scott Road in Surrey: ICBC says the number of injury claims and the size of awards continue to rise. - Evan Seal/Black Press
Crash on Scott Road in Surrey: ICBC says the number of injury claims and the size of awards continue to rise.
— image credit: Evan Seal/Black Press

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.

 

We encourage an open exchange of ideas on this story's topic, but we ask you to follow our guidelines for respecting community standards. Personal attacks, inappropriate language, and off-topic comments may be removed, and comment privileges revoked, per our Terms of Use. Please see our FAQ if you have questions or concerns about using Facebook to comment.

You might like ...

Keeping young goblins safe on Halloween
 
VIDEO: Ottawa hero Kevin Vickers receives standing ovation in House of Commons
 
Community cleanup crews sought for plastics program
Harvest fan
 
VIDEO: Witnesses describe scene at Parliament Hill; Raw footage of Ottawa shootings
 
STARRs receive four awards at the 10K Cobble Hill run
Nobody hurt in highway vehicle fire
 
Dateline: Cowichan 1947: Basketball excitement grips the valley
 
Blasting causes headaches for Langford homeowners

Community Events, October 2014

Add an Event

Read the latest eEdition

Browse the print edition page by page, including stories and ads.

Oct 22 edition online now. Browse the archives.