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ICBC floats possible 42 per cent rate hike

Last Updated Nov 24, 2016 at 12:02 pm PDT

(Courtesy ICBC.com)

ICBC says it is dealing with escalating crash numbers, claims, and costs

ICBC submitted a 4.9 per cent basic rate increase application to the B.C. Utilities Commission Wednesday

VANCOUVER (NEWS 1130) — In five years, basic insurance premiums at ICBC could potentially be 42 per cent higher than what you are paying right now.

The compounded rate hike is one of the possible ideas ICBC is presenting to the B.C. Utilities Commission as a way to meet costs.

This would be the potential yearly increase breakdown:

2016: 4.9 per cent

2017: 6.4 per cent

2018: 7.9 per cent

2019: 9.4 per cent

2020: 7.9 per cent

For an insurance bill of about $1,800, a 42 per cent hike would raise the cost to over $2,500.

NDP critic Adrian Dix is not impressed.

“42 per cent is an estimate, but if you look at what’s happened in recent years, 42 per cent could be low.”

Dix is referring to an approximately 30 per cent increase in basic rates over the past four years.

“It’s stunning for a corporation that has gone in this direction, that is unable to address its cost issues, and a government that has been first in line, putting Christy Clark first, which has taken $1.2 billion out of ICBC. We’re talking about small measures. The government over the last number of years has scooped $1.2 billion of ratepayers money that ratepayers pay to pay claims,” he says.

The B.C. Utilities Commission has to approve any rate increase and asked ICBC to come up with an estimated figure.

Other options from ICBC include a compounded 37.2 per cent or 26.6 per cent increase over the next five years.