ICBC rate hike approved

ICBC gets greenlight for interim 6.3 per cent rate hike

ICBC gets greenlight for interim 6.3 per cent rate hike

A proposed hike to ICBC's basic insurance rates has been approved on an interim basis, and is scheduled to take effect in less than three months.

The British Columbia Utilities Commission has given interim approval for a 6.3 per cent increase in basic auto insurance rates.

ICBC applied for the increase in December while B.C. Attorney General David Eby continues to address ICBC's financial losses.

During the last fiscal year, ICBC lost $1.3 billion.

As of April 1, all new and renewal policies will be subject to the rate hike.

Rates will increase by an average of nearly $60, the corporation estimates.

A BCUC panel will make a final decision as to whether or not the rate hikes will become permanent.

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The provincial government is in the midst of an overhaul at ICBC.

As part of approving the rate increase on an interim basis, the BCUC has established a public review process to seek feedback on ICBC's application.

In January, Eby warned drastic changes would be necessary.

Since 2014, injury claims costs have increased by 43 per cent to a projected total of $3.67 billion in 2018, while vehicle damage costs have increased by 50 per cent to a projected total of $1.63 billion, according to ICBC.

The B.C. government has brought in some changes to reform ICBC, including a $5,500 limit on payouts for minor injuries, higher fines for repeat bad drivers and an independent dispute resolution system.

The BCUC panel has opened the door for public consultations.

Comments and opinions can also be submitted online.

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