Paramedics at a crash scene near Penticton Nov. 18. Bodily injury claims have been increasing in recent years.

ICBC to seek 2012 rate increase

ICBC is applying for a basic insurance rate increase, as bodily injury claims increase.

The Insurance Corp. of B.C. has announced it is applying for an increase to its mandatory basic vehicle insurance for 2012 to help cover an increase in claims and a decline in investment income.

ICBC president Jon Schubert said Tuesday the corporation’s bodily injury claims have jumped, contributing to a $200 million increase in overall claims in the first nine months of 2011. Annual bodily injury claims have climbed by $350 million in the past five years, and are expected to reach $1.7 billion this year.

“We have not increased our rates since 2007 and there have been a number of rate decreases during that time,” Schubert said.

ICBC reported net income for the first nine months of the year of $52 million, down from $331 million in the same period in 2010. Despite that, its rate change application to the B.C. Utilities Commission will seek to decrease rates on its optional coverage, where it faces competition from private insurance companies.

Finance Minister Kevin Falcon cited ICBC’s revenue decline as the biggest factor in the B.C. government’s worsening deficit position. Quarterly results for the provincial treasury show a projected deficit of $3.1 billion for the year ending in March, up $313 million from the July estimate.

Falcon said insurance companies around the world have seen investment income fall off with the continued economic slump in the United States and instability in Europe. Schubert said most of ICBC’s investments have been moved into short-term bonds in response to the volatility of financial markets.

Just Posted

Rockets host tailgate party ahead of anticipated home-opener

Kelowna takes the ice for the first game of the season Saturday

RBC donates $40,000 to help connect youth with employers

The funding goes towards helping the YMCA Connects program to prepare young adults for the working world

Kelowna city council green lights new park charge

City wants to introduce a new development cost charge to create new parks

Kelowna boy returns to school after recovering from possible Xanax OD

RCMP investigation found the drug to be a form of benzodiazepine, commonly known as Valium or Xanax

FortisBC to offer free energy efficiency assessments for small businesses

Fortis BC wants to help 900 storefronts in Kelowna, Penticton and Rossland

Surrey mom allegedly paid $400,000 for son in U.S. college bribery scam

Xiaoning Sui, 48, was arrested in Spain on Monday night

Nanaimo RCMP officer ‘walks on water’ to rescue lost camper

66-year-old assisted earlier this month by Mounties who can seemingly work miracles

South Okanagan adventure park brightens seniors’ day with flowers

The many flowers that bloom in LocoLanding during the summer brighten the day for seniors

Winnipeg student, killed in bus crash, remembered as passionate, kind

University of Victoria student Emma Machado, 18, was killed in the bus crash near Bamfield on Friday

East Coast comedian Ron James bringing ‘Full Throttle Tour’ to Okanagan

James is at work on the first draft of his first book, ‘All Over the Map’

Mobile needle exchange considered in Okanagan

City looks at options to combat issues of discarded needles

Province investigating eviction at Shuswap assisted living facility

Residential Tenancy Branch looking into situation affecting low-income senior residents

Most Read