ICBC says 10 at-fault accidents in a 19-year period justify charging a Pitt Meadows farmer $41,000 a year to insure his truck.
Baldev Dhugha was shocked when he was quoted $40,913 to ensure a 2002 Dodge Caravan he needs for his blueberry farm.
His annual premium is $3,898, but the surcharge is $37,015, based on the driving history of those driving his vehicles and Dhugha himself.
Dhugha agreed to sign a consent form, allowing 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, said in a written statement.
“The customer, as a registered owner or driver, has had 10 at-fault claims in the past 19 years. While 80 per cent of drivers in B.C. receive the maximum discount of 43 per cent for their insurance, this customer is faced with a 950 per cent surcharge, totalling over $37,000 in an 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 per cent] believe risky drivers should pay more. It also showed that the majority of British Columbians favour 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.”
She agreed it was “an astronomical rate,” but noted Dhugha is responsible for the accidents of employees driving his vehicles.
Last year, he paid less than $2,000 to insure the same vehicle. So what happened, Dhugha wonders.
How could the rate go sky high in a single year?
Linsangan’s explanation was that because he has insured multiple vehicles with different plates, ICBC’s computer system did not catch up to him until this year, when he attempted to make a change in the principal operator. Then, his claims history came back to haunt him.
Dhugha said he does not believe such a high rate is “in the books” at ICBC, and questions whether it is legal.
What’s more, he said he has three other vehicles insured at lower rates, in other employees’ names.
He has been running a 50-acre blueberry farm for 30 years, and uses four different vehicles. His employees collect members of his crew in Maple Ridge, Pitt Meadows and Port Coquitlam, and drives them home at the end of the day.
“The season is going to start in six weeks. I feel very… what am I going to do?”
He has been dealing with a lawyer.
Linsangan said a person in Dhugha’s position could potentially transfer ownership of his vehicles into the name of a family member, or person they trust, who has a clean driving record, and insure the vehicles in their name.