Thursday, November 24, 2016

ICBC Rate Increase Missing Link Logic From The ProMedia.


Earlier this week we gave Mr. Michael Smyth of the Province credit for writing a solid piece on the Clarklandian's fake propaganda-driven war on fentanyl.

And, now with his column on how the BC Utilities Commission has forced ICBC to reveal it's five year projection of rate increases of 42 percent to go with 37 percent rate increases over the last five years, it would appear that Mr. Smyth is also at least trying to get to the crux of that matter as well, particularly given that he also points out how ridiculous Todd Stone's attempt at high end luxury car deflector spike spin is.

Unfortunately, Mr. Smyth seems unable, or unwilling, to clearly state what the true driver of a decade of neverending year-over-year increases is, increases that are crushing (in the same way that the neverending year-over-year MSP and Hydro rate raises are also)  those 'moms and dads who already find life unaffordable' that Ms. Christy Clark says she is 'fighting for' (as she simultaneously crushes them with all these continuous regressive rate increases that are funding her phony budget surpluses and letting folks who would not be crushed by paying a little more off the hook entirely).

Why do I come to this conclusion?

Well, first Mr. Smyth says the following re: the driver(s) of the increases:

...Why could ICBC rates go up so high and so fast? Because the accident rate is up, fraudulent claims are up, court-ordered awards are up, high-tech cars are more expensive to repair and a weak Canadian dollar makes American-made auto parts more pricey to buy...

Unfortunately (again!), Mr. Smyth offers no critical analysis of those so called drivers (i.e. what was the state of the Canadian dollar for example, say, between 2011 and 2013 when all of these increases began in earnest?).

And then, to 'compound' matters, at the end of the piece buried way, way, way under the lede, Mr. Smyth says this:

...And minister: Please stop using ICBC like a heavily lactating cash cow. The government practice of extracting “dividends” from ICBC — more than $1 billion siphoned in recent years — should be stopped right now, forever, before we pay a penny more...

Which is all well and good as far as the in-the-moment outrage goes, but...

Unfortunately (again, again!), Mr. Smyth just lets that last bit lay there, connecting no dots whatsoever.

Which means, it will soon be forgotten, and a sizeable chunk of those 'moms and dads who already find life unaffordable' will continue to think that Ms. Clark is actually trying to help them when she and hers have actually been crushing them for five years already, and will continue to do so for another five years if they are let off the hook by folks like the good Mr. Smyth if they refuse to connect the dots and tell British Columbians what is really going on here through May of 2017.




Anonymous said...

An elephant never forgets and come may 2017 the elephant will vote.Regardless of ads

Anonymous said...

Just because ICBC stops insuring high-end vehicles, that still puts the rest of us poor smooks driving lesser vehicles on the hook when any ICBC driver is found liable for repairs to a luxury vehicle. You can bet that a private insurer will fight tooth and nail to have blame assigned on the ICBC insured driver.

And can a government self-decreed monopoly possess the constitutional right to refuse to insure a certain class of vehicle just because it is expensive to repair? By definition, one would expect ICBC to act like a monopoly and insure all vehicles owned in BC. This is just a red herring to gloss over its inability to set premium levels on the basis of what it costs to repair a vehicle. Surely, it has been in business long enough to have figured that out.

It's just a way for the government to keep ahead of the story to deflect attention away from the real reason why ICBC is a disaster.

That the government has siphoned off over a billion dollars from ICBC's capital reserves is the real reason why it needs a huge premium increase to stay afloat.

Capping increase to 4.9 percent this year just serves to kick the can down the road. The same game is being played at BC Hydro.

Anonymous said...

If this is the truth about ICBC then ergo what is the truth about BCHydro before we go and blow 10 billion dollars on unneeded dam.?

Anonymous said...

Can someone please explain why there is no insurance competition in BC? What would have to happen to have other providers here? Seriously.

Grant G said...

Mike Smyth was on with Simi Sara today...Just after 10:00 am

Chuckstraight said...

ICBC increases=tax increases as long as gov`t uses ICBC as source of revenue.

Another fine example how the current gov`t has screwed up what was a really good thing brought in by the NDP.

Dan said...

This kind of thing doesn't help rates either. How many of these kinds of cases have gone unnoticed?

Don F. said...

It is insulting that they give us these worn out excuses and think we are that stupid as to believe.
I am smart enough to understand something that seems to be beyond their grasp.
Once they have driven me from my vehicle, from the grocery store, from being able to heat my home to finally not being able to secure treatment when I am sick, where will they get their bottomless pit of money?
Will they rely on the resources they have so carefully managed?? Good luck with that!

Hugh said...

I have the hard copy of the Vanc Sun article (the internet copy seems to have vanished) from Nov. 27, 2013 which says our Hydro rates are going up 45% over 10 years, when yearly increases are compounded. But that doesn't include the cost of Site C.

Anonymous said...

The name site C dam , does the C stand for Christy or does it stand for Christ, she seems to think she is on par with him. She is a ledgend in her own mind, she wants to see if she can walk on the water that will be behind the dam. She is the Sara Palin of BC.

e.a.f. said...

Loved the line about Christy Clark being the Sarah Palin of B.C. How True. Wonder what Christy can see from her back yard, where ever it is.

Todd Stone, blaming expensive cars as a rationale for having to raise rates and refusing to insure them, is the B.C. Lieberals method of playing the race card. It is about the only card they have left. It may be the trial balloon to see if there is some division they can exploit to ensure their election win. It will not be a far leap to go from who owns really expensive cars to immigrants caused our rates to go up. If the public buys into it, watch for more interesting developments. We have seen Brexit, Trump, LePen, Hungary,

crackers said...

It only makes sense that there are more accidents and more claims over the last five years because there are more drivers and more cars on the roads than there were even 5 years ago.
Each of the additional vehicles will be paying insurance which should offset the additional claims. It would be interesting to know what the percentage increase in claims were over the last five years compared with the increase in payments from new vehicles/drivers during that same time period. The excuse of increased claims requiring higher premiums might not stand up to closer scrutiny.

John's Aghast said...

Check your hydro bill Hugh. Its already gone up 50% in the last six years. You think for a minute its going to go down 5% in the next four? And that isn't even factoring in Site C!
Oh well, with on-set global warming you may not need to subscribe to BC Hydro for your heat.

Anonymous said...

So...let me get this straight.
The folks with the expensive cars won't be forced to buy ICBC insurance and can therefore shop around.
The rest of us have no choice for basic coverage.

Anonymous said...

Same old, same old, money talks thats the most important thing to this useless pack of scum bags. Screw every body else. If they stay in power there will be the elite and the homeless. If you can't afford to contribute to the liberal party you will be banished to Alberta. Wake up and smell there bullsh-t. They don't lie all the time, only when there mouths are open.

Anonymous said...

Earlier this week CBC's Daybreak South covered the Kelowna Transit Strike.

The strike was a hardship for First Nations people, seniors, patients, and UBCO and other students. Even with public transit Kelowna has horrendous traffic tangles.

Daybreak reported that Transportation Minister Todd Stone was not returning Mayor Colin Basran's calls re the transit strike. Then like magic, Wednesday, an agreement to immediatley settle the strike was arrived at.

Did West Side Christy put the screws to him? Can''t be having chaos in The Premier's Quicky-Drop-in-Riding can we?

fyi: Yesterday, Almanac had a clip of Minister Stone discussing ICBC. He sounded cowed.

Alistair Waters - Kelowna Capital News
Central Okanagan posted Nov 21, 2016 at 6:00 PM

"For the second straight week, Kelowna’s mayor has publicly called both sides in the ongoing Kelowna Regional Transit strike to return to the bargaining table…

He also said he while he has called Transportation Minister Todd Stone to try and set up a meeting to discuss the strike and what the province can do to get both sides back to the table, he has not heard back.'This is just so crucial,' said Basran Monday during council’s weekly meeting."

Anonymous said...

Good morning RossK,

In all the copying and pasting, I forgot to id myself. SH @ 8:41

RossK said...

Thanks SH--


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