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

In 2019, roughly one person died every three days in Surrey due to illicit drug overdoses

123 people died in the city in 2019, down from the previous year

BC Liberals firing at NDP due to fact new Surrey hospital not in budget

But Surrey-Panorama MLA Jinny Sims says business case is needed first

United Nations designates Surrey a ‘Tree City’

Surrey is one of 59 cities in the world to receive the designation

White Rock seeks assistance for park rain damage

City applies for provincial funding following closure of Ruth Johnson Park and ravine

Surrey RCMP looking for missing boy, age 14

Brayden Ritchat, 14, last seen in the 10800-block of 141st Street in Whalley on Feb. 21

Protecting privacy key to stopping spread of COVID-19, B.C. health officials say

The number of coronavirus cases in B.C. remains at seven

Toffoli scores OT winner as Canucks beat Habs 4-3

Demko makes 37 saves for Vancouver

Private clinics would harm ‘ordinary’ people using public system in B.C.: lawyer

Health Minister Adrian Dix announced in 2018 that the government would begin to fine doctors $10,000

B.C. terminates contract with hospice society refusing assisted death

Delta Hospice Society loses hospital service fund of $1.5 million

Child in hospital following fatal crash that killed father, sibling on B.C. highway

The single vehicle crash occured near Kamloops on Highway 5A

‘Die!’: Vernon councillor mailed death threat

This story contains information that might be sensitive to some readers

B.C. landlord can’t serve eviction notice because tenant is in jail

Homeowner baffled at arbitrator decision based on notice of hearing not being served properly

Hidden message connects Castlegar homeowners decades apart

The Rodgers family was surprised when a message fell out of the walls as they were renovating

Most Read