Extra caution needed as children return to school — August 31

Next week marks the beginning of a new school year, and ICBC and police are reminding drivers to be especially attentive when driving through school zones.

“During the first days of school, children may be too pre-occupied to remember road safety rules. Drivers need to keep in this in mind, especially around schools,” said Laurie Baker, ICBC road safety programs manager.

Police will be out to ensure that drivers obey the rules in school zones. When school is in session, a 30-km/h school zone speed limit is in effect during the posted times, and vehicles must stop for school buses when their lights are flashing.

Drivers may also see bright yellow lawn signs that read “Slow Down. School Zone”around schools across the province. This community campaign is sponsored by Autoplan brokers.

Back to school tips for parents:

• If your kids are starting school this fall, go over the route with them, showing them how to get to and from school safely. Even older children need to be reminded of the rules of the road.
• Consider alternatives to driving your kids to school. BC's Autoplan brokers sponsor the “Way to Go” program, a project to encourage children to walk, bike, carpool or take public transit to school.

Tips for pedestrians:

• Use designated crossing points and obey pedestrian traffic signs.
• Look left, right and left again before stepping off the curb.
• Look over your shoulder for turning vehicles before proceeding to cross.
• Make eye contact with drivers, so you know they see you and they know you see them.

For more information on road safety, check out www.icbc.com. For more information on Autoplan broker programs, go to www.roadsafety.ca.

For more information contact:
Doug Henderson 604-982-1332

ICBC filing with BCUC proposes no change in basic rates — August 23

ICBC has confirmed that it is not proposing changes in rates for basic, compulsory auto insurance for 2006 in its current filing with the BC Utilities Commission. If approved, this will make it three years in a row with virtually no change to basic insurance rates.

All BC motorists must have basic coverage, which provides drivers with the minimum insurance required by law. ICBC is the sole provider of basic insurance. ICBC also sells additional, optional coverage and competes with other insurers for this business.

The provincial government appointed the BC Utilities Commission in 2003 to regulate basic insurance rates and service levels. This filing with the BCUC will lead to the second ‘revenue requirement' hearing for ICBC. The Commission will be looking at all of the costs associated with basic insurance to determine the amount of revenue ICBC needs from basic insurance premiums in 2006.

As part of the process ICBC will hold a public workshop, and the Commission will receive written input from registered participants, and conduct a public hearing in the coming months. The decision from the BCUC is anticipated in the new year.

The primary determining factor in setting insurance rates is anticipated claims costs. More than three quarters of basic insurance premiums go to the cost of injury claims. ICBC's forecasts and the current trend of rising claims costs indicate that basic rates should not change at this time.

ICBC's goal is to continue to keep insurance rates low and stable. ICBC is confident it can hold the line on basic insurance rates despite cost pressures.

ICBC recently announced that 1.6 million BC motorists will share $100 million annually in rate reductions for optional insurance. The BCUC does not regulate rates for optional insurance rates.

For more information contact:
Doug McClelland (604) 982-2476

ICBC takes civil action to recover costs from shop owner — August 22

Discovery of stolen motorcycles, parts leads to civil action

ICBC is taking civil action to recover its claims and investigation costs, plus damages, as the result of an alleged motorcycle theft scheme. The statement of claim was filed in BC Supreme Court today.

“ICBC works with law enforcement agencies to combat auto crimes that impact our customers,” said Mark Withenshaw, ICBC vice president of loss management. “We will not sit back and simply pass those costs onto our customers.”

In 2003, ICBC investigators received information regarding motorcycle thefts in the Lower Mainland. In June of that year, police executed search warrants at M/Speed Performance, a Burnaby motorcycle parts store, and a warehouse in North Vancouver connected to M/Speed's owner, Marbod Kern. The searches resulted in what is believed to be the largest recovery of stolen motorcycles and parts in BC.

The estimated value of recovered vehicles was over $250,000.

It is alleged that Kern and an accomplice were involved in the dismantling of stolen motorcycles with the intention of selling the parts for profit.

Kern was also charged criminally and pleaded guilty to a possession of stolen property charge.

ICBC's Tip Line is a tool that helps combat fraud and vehicle-related crimes, averaging more than 1,000 calls every month from people reporting a range of vehicle-related issues. Information is confidential and callers can remain anonymous. The Tip Line number is 604-661-6844 or 1-800-661-6844.

Recovered materials

Recovered motorcycles

Recovered parts

For more information, see the Statement of Claim, Registry No. S-054684 in Vancouver.

For more information contact:
Doug Henderson 604-982-1332

ICBC releases 2nd quarter financial results — August 5

ICBC has reported net income of $164 million for the first half of 2005, down from $167 million for the same period last year.

Claims and related costs for the first six months of 2005 were $1.34 billion, which is six per cent higher than the first six months of 2004.

"The average cost of injury claims continues to be an area of concern," said Paul Taylor, ICBC's president and CEO.  "It is too early to say if the increase in overall claims and related costs marks a changing trend, but it is an example of the volatility of the costs of claims and their impact on ICBC's bottom line."

The overall number of claims in the first half of 2005 is slightly lower than claims for the same time period in 2004. The number of comprehensive claims has declined by 3.7 per cent compared to the first half of last year. Auto theft had been a growing cost for ICBC policyholders, but the success of the Bait Car program, along with the efforts of police, community groups, commercial property owners and individual vehicle owners, have shown how a concerted effort can drive down the cost of that category.

Insurance premiums earned in the first half of 2005 were $1.54 billion, which compares to $1.48 billion for the same period in 2004.  This increase is primarily due to increased sales of optional coverage and an increase in the number of vehicles on BC's roadways. 

ICBC has continued to keep controllable costs, or overhead, low for the benefit of customers.

ICBC's investments made a significant contribution to net income in the first six months of 2005, increasing to $255 million from $215 million for the same period in 2004.

"ICBC's net income stays in the company as retained earnings to absorb unexpected spikes in claims costs or unanticipated declines in investment income," said Taylor.

"ICBC invests its retained earnings and reserves to help keep insurance rates low and stable.  In 2004, income from investments resulted in an average premium that is $140 lower than it would have been otherwise."

In June, ICBC announced $100 million in optional rate reductions for more than 1.6 million BC motorists and more than $30 million in refunds.  If trends justify, ICBC will look at further rewarding its better-risk customers.

ICBC's rates for basic coverage are regulated by the BC Utilities Commission. ICBC recently indicated that its filing with the BCUC later this summer will propose no change to its basic insurance rates for 2006.  After a public process, the BCUC will determine if basic rates should remain the same, increase or decrease.

For more information contact:
Doug McClelland (604) 982-2476

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