VANCOUVER, B.C. — The Insurance Corp. of B.C. (ICBC) is hiking premiums by an average of 7.4 per cent in an attempt to get back on track financially.
The announcement comes after a six-year freeze on premium rates and is aimed at restoring the government-run insurance corporation to a break-even position.
“For the last few years, ICBC has been able to maintain a rate freeze primarily because of two factors — gains in investment income and favorable prior year’s adjustments,” says ICBC chair, Nick Geer. “We’ve now reached a point where rate changes can no longer be postponed, if ICBC’s operations are to break even.”
Minimum deductibles are also increasing under the changes, according to ICBC.
Adjustments to rates are being made to balance risk by type of usage, vehicle make and model and by territory. Wide-spread changes are in store for commercial vehicle operators “to ensure groups are charged a premium to adequately cover the risk they present,” says an ICBC press release.
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