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

Update: Heavy snow disrupts flights at Kelowna International

Kelowna - Expect snow in the Okanagan, Southern Interior and the Kootenays

Veteran reporter to stay at Global Okanagan

Blaine Gaffney was given a layoff notice after a miscommunication

New BCFGA president well prepared for new task

Oliver orchardist Pinder Dhaliwal has been BCFGA vice-president for five years

Cars collide on Duncan street

Two cars will have to be towed from the scene following a late afternoon crash

Interior Health CEO to retire in October

Chris Mazurkewich will step down after three years leading IH

What’s happening

Check out what is happening this weekend in the Okanagan-Shuswap.

How to keep local news visible in your Facebook feed

Facebook has changed the news feed to emphasize personal connections. You might see less news.

Oil Kings slide past Rockets in shootout

Ex-Rocket Tomas Soustal scores in Edmonton win Saturday over hometown Kelowna

Canucks came out hot, beat Bruins 6-1

Loui Eriksson scores twice, catapulting Vancouver to a lopsided victory over Boston

Vancouver artist’s cartoon of Florida school shooting resonates

Cartoon shows football coach, one of the victims, meeting others killed in school shootings

Trudeau family arrives in India for state visit

Seven-day visit includes meeting with Indian Prime Minister Narendra Modi

Military seeks DNA experts to help ID missing war dead

Federal program recovers, identifies and arranges burials for Canada’s nearly 28,000 missing war dead

Ski Patrol and SAR search for missing skier

Man’s truck found in Revelstoke Mountain Resort’s parking lot covered in ‘several days’ snow’

B.C. man brings dog to court as ‘best witness’

Man is defending himself on charges of uttering threats, possessing weapon for dangerous purposes

Most Read