What’s New: In Brief (February 06, 2006)

The BC Utilities Commission (BCUC) has approved ICBC’s application for an interim rate increase of 6.5% on basic insurance, effective March 15. The interim rate will remain in place until the BCUC renders its final decision on 2006 basic rates, expected in late May of this year. If the BCUC approves a final rate lower than 6.5%, affected customers will receive a refund subject to the conditions ordered by the Commission.ICBC says it requested the increase as a result of significantly increased injury costs for claims. An ICBC fact sheet suggests its claims costs increased from $1.48 billion to $1.71 billion over the course of the past year. “In 2005, basic insurance claims costs rose more than 15% and we expect the average cost of claims to rise by about 4% in 2006,” the ICBC said in a statement. “We need to raise rates to cover these increases.”Basic premiums are anticipated to increase by $38 for the average customer as a result of the decision. An ICBC competitor, Canadian Direct Insurance, had requested the BCUC to review the government insurer’s proposed rate hike before any action is taken.

Drivers: Beware of frozen squirrels!Freak incidents involving animals top the list when it comes to bizarre motor claims, according to Norwich Union. “From frozen squirrels crashing through windscreens to cows jumping on quad bikes and zebras colliding into cars in safari parks, our furry friends can lead to a drive on the wild side,” said the UK insurer. “Food is the second biggest cause of bizarre claims, and in the past year Norwich Union has recorded incidents involving potatoes lodged behind brake pedals and frozen kebabs flying out of cars and damaging nearby vehicles.”Norwich Union has compiled a list of the 10 weirdest claims it received in 2005. Among some of the insurance company’s water cooler favorites: “A frozen squirrel fell out of a tree and crashed through the windscreen on to the passenger seat” “I was driving round a bend, when one of the doors opened and a frozen kebab flew out, hitting and damaging a passing car” “A herd of cows licked my car and caused damage to the paintwork” “A zebra collided with my car when I was at a safari park” “While I was waiting at traffic lights, a wasp went down my trouser leg which made me hit the accelerator and prang the car in front” “I couldn’t brake because a potato was logged behind the brake” “A cow jumped on my quad bike”