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

Eastside Road re-opened following repairs

Section of Eastside Road closed by the Ministry of Transportation is open after repairs.

Update: Administrative error results in do-over for South Okanagan dangerous offender’s trial

Ronald Arthur Teneycke will return to Penticton court on June 5 to start the process over

Riders cash in at Okanagan rodeo

Over $12,000 given out to competitors at the 81st annual Keremeos Elks Rodeo

Okanagan-Shuswap weather: rain, clouds, thunderstorms and flash floods

Environment Canada forecasts dreadful weather for Thursday

Penticton pastry chef wins top honours at Vancouver’s Chocolate Challenge

Jalayne Jones creation, ‘Beer & Pretzels’, won

Nominate your favourite businesses for the Best of the South Okanagan

Join the Penticton Western News as they celebrate the Best of the South Okanagan awards

Okangan MP welcomes plan to fight human trafficking

Mel Arnold applauds Conservative plan for A Safer Canada

B.C. woman left ‘black and blue’ after being pushed off 40-foot cliff at lake

West Shore RCMP looking for witnesses as investigation continues

VIDEO: Suspected arson sends five to Abbotsford hospital with smoke inhalation

Man seen throwing flammable substance in van, lighting it on fire next to home

Okanagan elementary schools help Chinook salmon

Kingfisher is hosting a series of field trips to release the school-raised salmon

Summerlanders urged to travel by bike

Bike to Work Week and Bike to School Week run May 27 to June 2

UPDATE: Water main break in Central Okanagan causes massive flooding

Glenmore Road and Highway 97 are affected by the water main break

Summerland Giant’s Head Run features Retro ’80s theme

Event will be held Saturday, June 1 at 6 p.m.

Most Read