ICBC used a 6.3 percent increase in basic insurance rates

Insurance company B.C. today it will apply for an increase in the basic level of insurance by 6.3 percent.

ICBC asks B.C. The Public Utilities Commission is far more than an average increase after losing $ 1.3 billion in the last financial year and anticipating a net loss of $ 890 million in this fiscal year.

Advocate General David Eby mentioned the ICBC as a "fire in the financial dumpster" and B.C. the government cooperated with the public insurer to introduce substantial reforms to restore it.

If the ICBC application is approved, the rate of basic customer insurance will increase by approximately 60 dollars in April, says the corporation. Changes in the interest rates approved by the BCUC in the autumn will not be implemented until September.

"The increase in the rate will never be positive, but I think that in this forecast it is more important that this is an encouraging sign to see the positive measures that we are implementing in terms of reform," said Nicolas Jimenez, who was appointed president in July and the Executive Director of ICBC.

Jimenez said that without reforms, the ICBC is looking at an increase in rates by more than 40 percent, which means drivers would pay an average of additional $ 360 for basic insurance.

The increase in costs is necessary, ICBC argues, due to sharp increases in the number of accidents, as well as damage to and damage to vehicles over the past five years.

From 2014, damage costs will increase by 43 percent to a total value of 3.67 billion dollars only in 2018, while vehicle damage costs will increase by 50 percent to the estimated total of $ 1.63 billion, according to the ICBC.

Jimenez said that in September, when basic rate changes will be added to the basic increase, approximately 25% of customers see a decline in the base rate, and 42% will increase from zero to 6.3% and 33% a percentage increase by more than 6 , 3 percent.

"What is the overall design point," said Jimenez. "There are many people who really deserve to pay less than they pay today, and high-risk drivers will have to pay more. I think this is fully consistent with where British Columbians are."

In the category of basic motor insurance – mandatory for all B.C. drivers – the highest allowed rise to 7.9 percent.

The highest increase is determined by the ICBC's "step-by-step balancing framework", which covers an annual increase of 1.5 percentage points over the increase in the previous year (up 6.4 percent).

Non-compulsory insurance products will continue to be adapted to remain competitive with the private market, he said.

Eby published a statement that weakened the previous liberal government because it did not prevent the increases that he described as preventable.

"The previous government presented clear solutions to the financial crisis of the ICBC and warned that drivers would suffer consequences if they did not work," he said. "Not only did they ignore the warning, but they hid solutions from the public."

Eby said that the changes will significantly reduce the legal costs associated with minor claims of damage, while improving care for people who are injured in crashes.

"We are also doing a historical update of our public car insurance policy to make insurance more honest for people in B.C." he added.

Jimenez said that the cost-related and correction challenges will remain.

"These cost pressures remain in the system, so we will continue to work with the government to find ways to eliminate more reforms and cost savings so that when we look next year and the year after, we can continue to increase the growth rate closer inflation rate, "he said.

Jimenez said that reforms are designed to "completely redirect" the system in order to maximize the amount that a person receives in an application for unnecessary pain and suffering, and instead focuses on care.

He said that the ICBC, the government and the medical community are collaborating in such a way that people who are injured can make quick access to extended care services without paying for their pockets.

"Part of this is that the costs are withdrawn from the system. The legal costs are overcharging the system – this is obvious, undeniable," he said. "But the more important part of this is putting people on a journey to recovery, and the system today does not work as well as it should, in this regard."

The ICBC says that the average dollar value of settlements required by attorneys' lawyers rose by 27% over the past year, while the average amount for experts and expert reports increased by 20%.

The government has previously announced that the ICBC will cover "pain and suffering" for claims for minor injuries of car accidents at $ 5,500, which was criticized by lawyers, healthcare advocates and rehabilitation companies.

A minor damage of $ 5,500 is slightly higher than the Alberta threshold of $ 5,020, but lower than New Brunswick, Nova Scotia, P.E.I. and Newfoundland. Quebec and Manitoba have a full blame, which prevents lawsuits. Saskatchewan has a dual system with $ 5,000 per cake.

Approved modifications to the ICBC interest rate, which will enter into force in September, should shift their underlying insurance into a "driver-based model" in which faults were tied to drivers and not to vehicle owners in the event of a malfunction. New discounts would be earmarked for new vehicles with an automatic braking system installed on the manufacturer, or running less than 5,000 kilometers a year.

The insured will have to indicate all the drivers who can operate their vehicle. The ICBC will weigh the experience and history of accidents involving primary and non-primary drivers in calculating premiums and take into account that all drivers in the event of a breakdown returned a decade in determining premiums compared to the current thirteen years.

The government says inexperienced drivers will reduce existing premiums to better reflect the risks they pose.

Increasing premiums earned by penalizing penalties and buying traffic cards will increase by 20 percent and autumn 20 percent in autumn 2019.

And people who earn risk premiums for serious crimes like driving under the influence of alcohol and excessive speeding will also increase by 20 percent this autumn and another 20 percent.

It's still coming.

– with Rob Shaw files, Jennifer Saltman and Mike Smyth

[email protected]

twitter.com/nickeagland

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