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

A pickleball debacle unfolds in Lake Country

Pickleball players and frustrated residents discuss the sport court

Lightning causes three wildfires east of Osoyoos

It is believed the fires started by a lightning storm

Kelowna man found guilty of second-degree murder awaits sentencing

A Kelowna jury found Steven Randy Pirko guilty of the second-degree murder in June

Kelowna cab driver charged with sexual assault

RCMP received a report May 28 alleging a taxi passenger had been sexually assaulted by a cab driver

Trial delayed for West Kelowna man charged with murdering his wife

Kevin Costin’s trial is on hold until the Crown and defence work out a few kinks

VIDEO: Young couple found dead in northern B.C. had been shot, police say

Chynna Noelle Deese of the U.S. and Lucas Robertson Fowler of Australia were found along Highway 97

Lightning causes three wildfires east of Osoyoos

It is believed the fires started by a lightning storm

Backhoe ‘burned to a crisp’ in South Okanagan

South Okanagan fire chief said the situation could have been a lot worse

Air ambulance called to second collision on Highway 1 west of Salmon Arm

Emergency crews respond to motor-vehicle collision near Second Nations Road intersection

Crash closes Highway 1 near Tappen

The collision happened about 3:30 p.m. by James Road

VIDEO: Man found dead near B.C. teens’ truck could be linked to a double homicide

RCMP said they are looking for Kam McLeod, 19, and Bryer Schmegelsky, 18, of Port Alberni

Latest plan is to fly trapped fish by helicopter over Big Bar slide

Multi-pronged plan set in motion to freesalmon blocked by landslide in the Fraser River

Controversial anti-abortion film to be screened in the South Okanagan

Unplanned will be shown at the Penticton Landmark theatre

Okanagan-based pop star Andrew Allen is back with a new band

Singer-songwriter Andrew Allen is bringing his new band home for a concert this Friday

Most Read