Vancouver – ICBC will submit its next basic rate application with the British Columbia Utilities Commission, asking for a 6.3 per cent increase to basic insurance rates – an increase which would have needed to be almost 40 per cent if not for the major reforms being introduced to B.C.’s auto insurance system.
As reported last month, ICBC 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.
If approved, the new basic insurance rate would be effective April 1 and will mean an average increase of less than $60 for personal customers’ basic insurance coverage.
David Eby, Attorney General, released the following statement on ICBC:
“Today, British Columbian drivers are again faced with the reality of the financial crisis at ICBC left by the previous government. This situation was so dire that, had our government not moved to stop the bleeding, the announcement today would have been almost a 40% increase.
“What’s worse is that these repeated increases could have been prevented. The previous government was presented with clear solutions to ICBC’s financial crisis and warned that if it did not act, drivers would suffer the consequences. They not only ignored the warning, they hid the solutions from the public.
“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. The changes will come into effect in the spring, which will significantly reduce the legal costs associated to minor injury claims and provide enhanced care for people injured in crashes.