A retired BC government manager says keeping annual ICBC rate increases locked in at 4.9 percent is just delaying an inevitable increase of nearly ten times that.
“Eventually you run out of money from the piggy bank, is what it is,” says Richard McCandless. He explains the price of increased crashes in the province is far outpacing insurance rates.
And, with ICBC’s capital reserve depleted by the province mandating it be used for costs – he says the money has to come from somewhere.
READ MORE: ICBC to apply for insurance rate hike
“It’s intergenerational inequality. The current generation should be paying the costs. Instead, they’ve destroyed the savings that were there and now the future generation – next year’s rate-payers – are going to have to face the music.”
McCandless says it’s not inconceivable to see a 45 per cent increase in coming years – but it’s hard to know without seeing ICBC’s multi-year plan.
Wednesday is the deadline the B.C. Utility Commission has set for the corporation to release that plan.
NDP Leader John Horgan says it’s hard to say definitively what the solution is for ICBC because the government is withholding the corporation detailed numbers.
“Let’s focus on the task at hand here. They’re holding back information because they don’t want to lose their jobs. Let’s get the information out and then we can have a discussion about how we go forward.”
Horgan says since 2010 the government has purposefully taken money out of ICBC instead of keeping rates low for drivers.