By CRM staff
Toronto, Ontario -- January 3, 2019 --ICBC’s request for higher insurance premiums was granted today, as the B.C. Utilities Commission gave the go ahead for the public insurer to raise insurance rates by 6.3 percent.
The B.C. insurance company applied for the rate increase back in December after facing significant skepticism throughout 2018, which included criticism from Attorney General David Eby. In January 2018, Eby called out the Liberal party for concealing ICBC’s financial frailties from the public.
"They knew the dumpster was on fire, but they pushed it behind the building instead of trying to put the fire out," Eby said.
Eby also accused the government of siphoning a billion dollars from ICBC, and recently revealed that ICBC is set to lose $890 million in 2018-2019, following a $1,3 billion net loss in 2017-18.
ICBC stated that the new rates will translate into an average increase of less than $60 per customer for basic insurance coverage.
A BCUC panel will review the increases and make a decision on whether or not to make them permanent.
The rate increases will come into affect starting April 1, with all new rate policies being subject to the increase. ICBC said that the temporary approval "will lessen the depletion of ICBC's already low basic insurance capital while the BCUC reviews the full application."