Saturday , January 23 2021

Brake yourself for the ICBC rate hike



With the ICBC losing so much money, B.C. Drivers should bend a wallet to the wallet in the annual requested rate increase, with a message expected Thursday or Friday.

David Eby is the guy who famously said that the ICBC bank accounts burned up in a "financial dumpster brand" that threatened to clog the entire car insurance company.

The Secretary General promised to do something to extinguish the flames. But in the end it seems as if someone threw a couple of decks on fire and doused it all into gasoline instead.

The dumpster fire is still raging and the ICBC continues to lose large amounts of money. The company's recently reported loss for the first half of the year was a shocking $ 582 million.

This means that the ICBC is about to lose more than 1 billion. Dollars again this year, which would be the second consecutive billion dollar plus loss.

If you want to put it differently, consider the ICBC losing more than 3 million dollars a day. This means that the ICBC will lose about $ 9,000 in the four minutes or so it takes you to read this column.

Something has to give, and it will start this week.

The public auto insurance company is set to reveal its annual requested interest rate increase, with a message expected Thursday or Friday.

With the ICBC losing so much money, B.C. The drivers should bend a wallet to the wallet.

In the category of basic car insurance – mandatory for all B.C. drivers – the maximum allowable rate increase is 7.9 percent.

The maximum increase is determined by the ICBC rate-smoothing framework, which covers the annual increase of 1.5 percentage points over the previous year's increase (which was 6.4 percent.)

ICBC's optional insurance products (such as collision coverage and third party liability) have an unlimited interest rate hike so that they could rise higher.

As B.C. Drivers prepare to pay more, many people have to ask themselves when Eby intends finally to extinguish the fire.

The new year will answer this question.

According to Eby, one of the main causes of ICBC's financial bleeding is the cost of financial settlements to persons suffering minor injury in car crashes.

The court's payments to pain and suffering are currently unlimited, and it costs ICBC a fortune: on average $ 30,000 per Case.

The government plans to cover the maximum payment of only $ 5,500, but the cap will not kick into April 1, 2019.

For British Columbia's personal injury attorneys, it's an April Fool's joke that's got them crazy crazy.

It has also advocated that drums for business before the jackets throw in. Advertising at personal injury law firms is currently at record highs.

Eby hopes that payment cards and other cost-cutting measures will end the quenching fire once and for all. This would allow further increases to be more modest, which would suit the governing NDP as another option.

Meanwhile, ICBC rates are set again. The opposition Liberals will be angry, but Eby reminds the public that the liberals used the ICBC as a scrambled book scooping more than $ 1 billion from the company's boxes to use other priorities.

It's a good comeback for Liberal attacks. But if Eby does not soon extinguish the fire, the new Democrats can be burned instead.

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