ICBC stands behind $41,000 annual insurance charge

Date: 13 JUN 2018posted by Car Rentaledited by WinX

Pitt Meadows farmer, Baldev Dhungha, was quoted $40,913 to ensure his 2002 Dodge Caravan, which he needs for his blueberry farm. ICBC has justified the quote with the reason that he has been at 10 at-fault accidents in a 19 year period. His annual premium is $3898, but the surcharge is $37,015, based on the driving history of those driving his vehicles and Dhunga himself. Dhunga has signed a consent form which allows ICBC to disclose his personal interactions with the Crown corporation.

"The high quote provided to the customer is atypical, but was completely accurate due to the customer's claims history," Joanna Linsangan, of ICBC, wrote in a statement. "The customer, as a registered owner or drive, has had 10 at-fault claims in the past 19 years. While 80 percent of drivers in BC receive the maximum discount of 43 percent for their insurance, this customer is faced with a 950 percent surcharge, totaling over $37,000 in additional premiums due to a high number of at-fault crashes" "British Columbians have been calling for fairer auto insurance rates, and the government and ICBC are taking a number of additional steps to make sure that those that cause the most crashes are paying their fair share when it comes to insurance premiums." "A recent survey showed that the vast majority of British Columbians [82.3 percent] believe risky drivers should pay more. It also showed that the majority of British Columbians favor changes that will make insurance more affordable for low-risk drivers and see high-risk drivers pay increased insurance premiums to better represent the risks they pose on the road."

Linsangan does however agree that Dhungha is facing "an astronomical rate," but also noted Dhunga is responsible for the accidents of employees driving his vehicles. Last year Dhungha paid less than $2000 to insure the same vehicle. Linsangan explained Dhungha insured multiple vehicles using different plates and ICBC's computer system did not catch on until this year, when he attempted to make a change in the principal operator and then the claims history piled on. Dhungha could not believe such a high rate was possible and questions the legality of it. He currently is dealing with a lawyer.

Leave a comment

Please enter your full name

Please enter your question