ICBC is submitting a 4.9% increase for basic insurance rates to the Province’s Utilities Commission.
ICBC Spokesman, Adam Grossman says a higher volume of vehicle and damage claims are forcing their hand.
“We saw an increase of more than 23,000 vehicle damage claims over the past 12 months, equally, we’re seeing an increase in the number of injury claims reported to us during that period equalling 8,000 more than the previous year.”
“If we were to cover our basic claims costs, we really need to be increasing our basic rates by 15.5% which is what we would need just to cover our costs alone. Even after this increase what we will bring in basic premiums is going nowhere near in covering the costs we have.”
However, NDP ICBC Critic Adrian Dix believes the problem goes back to 2009 when they laid off staff and implemented the Transformation Project.
“They made it harder to resolve claims and the computer system and transformation project they put in place which is nowhere near finished and has taken longer than World War II has failed.”
Dix would also like to see more responsibility taken by Christy Clark’s Liberal government and the insurance company.
“It is accurate to say costs have gone up but has to wonder when looking at the government and ICBC they have to take some responsibility for the utter failure of Liberal policy.”
If approved, it will mean an average increase of $3.50 per month for a customers basic coverage.
In 2015, ICBC paid out $2.4 billion dollars in injury claims which is a $900 million dollar increase from seven years ago.
67,300 injury claims are projected in 2016 along with 232,300 vehicle damage claims in BC.