ICBC to apply for 6.3% hike to basic insurance rates

Crown Corporation said it will be submitting its next basic rate application to the British Columbia Utilities Commission Friday

ICBC will be seeking a 6.3 per cent increase to basic insurance rates.

The Crown Corporation said it will be submitting its next basic rate application to the British Columbia Utilities Commission Friday afternoon.

If approved, the changes will come into effect on April 1, 2019, and increase a customers’ basic insurance rate by an average of about $60.

“A rate increase is never going to be positive but I think the more important thing in this announcement is that this is an encouraging sign that we’re seeing the positive measures that we’re implementing, in terms of reform, come to light,” said Nicolas Jimenez, president and CEO of ICBC.

READ MORE: ICBC overhaul includes new $50 fee for lending out your car to friends, family

READ MORE: ICBC doubles compensation for crash victims with serious injuries

The increase follows last year’s hike that increased basic insurance rates by 6.4 per cent.

ICBC said it is projecting a net loss of $890 million for its current fiscal year, as external pressures continue to grow from a record number of crashes taking place in B.C., and the increase in claims volume and higher claims costs.

READ MORE: Pay, bonuses for ICBC executives being reduced, David Eby says

READ MORE: ICBC moves to tighten driver discount rules

In a separate statement, Attorney General David Eby said the announcement serves as a reminder of the financial crisis at the insurance corporation.

“Our government has taken on the difficult work of fixing the problems left behind at ICBC, including implementing the very solutions the old government was told could have prevented this mess,” he said.

The NDP government has moved to cap pain and suffering awards to $5,500 starting next fall, and is setting up a dispute resolution system to reduce the number of injury cases going to court.

In a year-end interview with Black Press, B.C. Liberal leader Andrew Wilkinson said it’s time to consider ending ICBC’s monopoly on basic insurance.

“We’ve got to ask hard questions,” Wilkinson said. “Is it time to convert it into a co-op or a mutual insurance company that’s owned by the policy holders, and they get some control over it? Is it time to introduce competition?”


@ashwadhwani
ashley.wadhwani@bpdigital.ca

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Search continues for wolf, senior citizen being transferred to Vancouver

Frank Russ shows where the unprovoked wolf attacked his father

Sunken Gardens bloom from deeply seeded efforts

Garden club members are rooted in dedication

COVID-19 highlights lack of connectivity in First Nations communities

Many don’t have access required to utilize online platforms, says First Nations Technology Council

VIDEO: Injured bald eagle rescued in B.C. First Nations community

Bird suspected injured in fight, whisked off to Coquitlam rehab

Toronto Raptors’ Ujiri says conversations about racism can no longer be avoided

Thousands have protested Floyd’s death and repeated police killings of black men across the United States

Protesters prepare to rally against racism in front of Vancouver Art Gallery

Rally is in response to the deaths of black Americans and a Toronto woman

Protesters rally against anti-black, Indigenous racism in Toronto

Police estimated the crowd to be between 3,500 and 4,000 and said there was no violence

Introducing the West Coast Traveller: A voyage of the mind

Top armchair travel content for Alaska, Yukon, BC, Alberta, Washington, Oregon and California!

Feds earmark $1.5M to support recovery of B.C., Indigenous tourism

B.C. money will be split between Vancouver Island and Indigenous tourism

‘We’re sick of it’: Anger over police killings shatters U.S.

Tens of thousands marched to protest the death of George Floyd

Surrey mayor’s party under fire for ‘sickening’ tweet accusing northern B.C. RCMP of murder

Mayor Doug McCallum says tweet, Facebook post ‘sent out by unauthorized person’

Most Read