ICBC says a spike in injury claims and fraud will likely force it to increase basic auto insurance rates this October by as much as 6.7 per cent.
The Crown corporation says its payouts for pain and suffering, future care and loss of wages rose 10 per cent last year to $2.17 billion.
CEO Mark Blucher says if ICBC were to ask for a rate increase today, it would seek 6.7 per cent — which is the maximum allowable under current legislation.
But Transportation Minister Todd Stone said on Monday such a hike would be “unacceptable” and he is working with the provincial insurance company to minimize the rate hike.
“While the number of crashes is relatively unchanged, ICBC is also reporting more crashes with multiple injuries than ever before, with more cases being potentially fraudulent,” said Stone.
“Just last month, ICBC released a media bulletin about a ‘jump-in’ scheme, where it was able to determine only one individual was in an accident, but two other relatives fraudulently filed bodily injury claims,” said Stone.