ICBC to apply for 6.3% hike to basic insurance rates

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

Grand Forks’ Roly Russell met with The Gazette after he was named Parliamentary Secretary for Rural Development Thursday, Nov. 26. Photo: Laurie Tritschler
NDP’s Roly Russell named secretary for rural development

Russell formerly represented rural Grand Forks on the Regional District of Kootenay Boundary’s elected board

RNG plant
Construction on ground-breaking RNG plant in Fruitvale set to go in spring 2021

REN Energy partners with Calgary engineering firm for innovative West Kootenay gas plant

COVID-19. (Image courtesy CDC)
47 new COVID-19 cases in Interior Health region

1,538 total cases, 399 are active, ten in hospital

This picture of Taghum resident Marc Savard was taken in February when he first spoke to the Nelson Star and little was known about the virus that had shut him out of his job in Wuhan, China. Photo: Tyler Harper
VIDEO: Once an outlier, Nelson man’s COVID-19 experience now typical

Savard was living in Wuhan, China, when the pandemic began

A B.C. Supreme Court Judge ordered a Grand Forks couple to remove their trailer from its last known whereabouts at a Granby Road beach. Photo: Submitted
Grand Forks couple leave Bare Ass Beach after court injunction

The pair had been in a long and contentious dispute with city hall since last Spring

From the left: Grand Forks sculptor David Seven Deers, Rotary Club President Grant Hill and Shinning Raven Woman Council member Regina Burrows pose for The Gazette at Seven Deers’ 9th Street studio Friday, Nov. 27. Photo: Laurie Tritschler
Grand Forks Rotarians raise money for Shining Raven Woman project

President Grant Hill said the Rotary Club “had to be a part of it”

Black Press Media and BraveFace have come together to support children facing life-threatening conditions. Net proceeds from these washable, reusable, three-layer masks go to Make-A-Wish Foundation BC & Yukon.
Put on a BraveFace: Help make children’s wishes come true

Black Press Media, BraveFace host mask fundraiser for Make-A-Wish Foundation

A B.C. Ambulance Service paramedic wearing a face mask to curb the spread of COVID-19 moves a stretcher outside an ambulance at Royal Columbia Hospital, in New Westminster, B.C., on Sunday, November 29, 2020. THE CANADIAN PRESS/Darryl Dyck
Top doctor urges Canadians to limit gatherings as ‘deeply concerning’ outbreaks continue

Canada’s active cases currently stand at 63,835, compared to 53,907 a week prior

A Canadian Pacific freight train travels around Morant’s Curve near Lake Louise, Alta., on Monday, Dec. 1, 2014. A study looking at 646 wildlife deaths along the railway tracks in Banff and Yoho national parks in Alberta and British Columbia has found that train speed is one of the biggest factors. THE CANADIAN PRESS/Frank Gunn
Study finds train speed a top factor in wildlife deaths in Banff, Yoho national parks

Research concludes effective mitigation could address train speed and ability of wildlife to see trains

A airport worker is pictured at Vancouver International Airport in Richmond, B.C. Wednesday, March 18, 2020. THE CANADIAN PRESS/Jonathan Hayward
Canada extends COVID restrictions for non-U.S. travellers until Jan. 21 amid second wave

This ban is separate from the one restricting non-essential U.S. travel

Menno Place. (Google Street View image.)
B.C. care home looks to hire residents’ family members amid COVID-19-related staff shortage

Family would get paid as temporary workers, while having chance to see loved ones while wearing PPE

A man walks by a COVID-19 test pod at the Vancouver airport in this undated handout photo. A study has launched to investigate the safest and most efficient way to rapidly test for COVID-19 in people taking off from the Vancouver airport. The airport authority says the study that got underway Friday at WestJet’s domestic check-in area is the first of its kind in Canada. THE CANADIAN PRESS/HO, Vancouver Airport Authority *MANDATORY CREDIT*
COVID-19 rapid test study launches at Vancouver airport for departing passengers

Airport authority says that a positive rapid test result does not constitute a medical diagnosis for COVID-19

114 Canadians were appointed Nov. 27 to the Order of Canada. (Governor General of Canada photo)
Indigenous actor, author, elder, leaders appointed to Order of Canada

Outstanding achievement, community dedication and service recognized

Screenshot of Pastor James Butler giving a sermon at Free Grace Baptist Church in Chilliwack on Nov. 22, 2020. The church has decided to continue in-person services despite a public health order banning worship services that was issued on Nov. 19, 2020. (YouTube)
2 Lower Mainland churches continue in-person services despite public health orders

Pastors say faith groups are unfairly targeted and that charter rights protect their decisions

Most Read