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

Canada Women’s Rugby 7s Team land at home after series triumph

Next stop at Langford offers Olympic qualification

Two-sailing waits continue Victoria to Tsawwassen

Backlog continues despite extra sailings over Easter

PHOTOS: Green Party Leader Elizabeth May says ‘I do’ on Earth Day

May and John Kidder got married Monday morning in Victoria

Second earthquake in less than two hours strikes off Vancouver Island

The first earthquake happened at 1:27 p.m., the second at 2:44 p.m.

Saanich soccer player survives bout with flesh eating disease

Harinder Sandhu picked up the disease after soccer game

Homeless activists outside Notre Dame demand ‘a roof too’

Wealthy people have donated millions to effort to rebuild cathedral after devastating fire

United Way opens grants to help charities tackle social issues

Charities north of the Malahat can apply for grants $2,000 to $20,000

POLL: How often does your family use BC Ferries?

Navigating the lineups for BC Ferries is a way of life for… Continue reading

Crime Stoppers most wanted for Greater Victoria for the week of April 16

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

Sri Lanka invokes war-time military powers after nearly 300 killed in Easter bombings

Sri Lanka’s minister of tourism says 39 foreign tourists were killed in the Easter Sunday attacks

Man’s body found in popular Cowichan Valley hiking area

Police say death not suspicious after discovery in Stoney Hill area overlooking Saltspring Island

Multiple sailing waits as BC Ferries deals with Easter Monday traffic

89 extra sailings had been added to the long weekend schedule

Vancouver Island-based company provides glass alternatives to plastic straws

Enviro Glass Straws now producing more than 60,000 straws each year

Most Read