30 — Friday, April 26, 1991 - North

Shore News

RUEDI SCHNYDER of Gibsons
sent ia a letter to ask how ICBC
manages to break even, especially
when some claiins settled one year
tesulted from accidents that oc-
curred years ago.

First, we should define what
‘breaking even’? means to ICBC.
In principle, we aim to generate
enough income each year to pay
for that year’s insurance claims
and operating expenses. In prac-
tice, we reach our break-even goal
over a number of years, with
shortfalls in some and surpluses in
others.

To answer Ruedi’s question we
need to describe how {CBC earns

AUTOMOTIVES
The bottom line: how does ICBC break even?

und uses its income. Most of it
comes from) motorist premiuns
which go into the Autoplan fund
and are ultimately used to pay for
claims.

However, until we pay the
money out, we invest it to earn
additional income. More on this
later.

When someone makes a claim,
an adjuster estimates the amount
of money needed to seitle it. This
amount is ‘‘reserved’’ for the
claim in the Autoplan fund.

Most simple claims of minor
damage or injuries can be settled
quickly, Others involving serious
injuries or disagreement over lia-

ROA

THE FOLLOWING are the
scheduled road closures and
detours for the coming week in
North Vancouver District, City,
West Vancouver District and
along area highways.

© North Vancouver District:
Dollarten Highway Reconstruc-
tion Project: Up to 20 minute
delays from time to time. Use
Muunt Seymour Parkway as an
alternate route.
Panorama Drive and Banbury
Road to Panorama Drive: Road
reconstruction,
Gallant Avenue {o Naughton
Avenue: Street closed excepi to
local traffic.

® North Vancouver City:

Cotton Road Bridge: Lane
closures of the Cotton Road
Bridge wiil be necessary to

"Get ready

facilitate concrete deck repairs. At
least one of the five lanes of traf-
fic will be closed for the entire
construction period. Four lanes of
traffic will be open from 7 to 9
a.m. and from 4 to 6 p.m. Mon-
day to Friday. A minimum of two
lanes will be open at all times.
Expect minor delays.

e West Vanceuver District: No
scheduled road closures or
detours.

® Ministry of Highways:

Squamish Highway: Temporary
road closures 21 kilometres north
of Horseshoe Bay between 9:30
a.m. and 12 p.m. and I p.m. to
3:30 Monday to Thursday and
9:30 a.m. to 12 p.m. on Fridays
for rock scaling until April 26.

for Spring

Tune your Mazda!

[FREE 20 POINT |
TUNE-UP pls SAFETY INSPECTION

SPRINGTIME

Replace engine oil &
filter.Top up all fluid
ievels. Wash & clean

car. 95

Plus
parts
MOST MAZDA CARS & LIGHT TRUCKS

Genuine

| 1 Battery cables

12. Exhaust system
& connections 13. Steesing linkage
2 Coolant strength 14, Driveshaft &
3 Rediatcr hoses universal joints
4 Heater hoses 15. Frent & rear
5 All oil levels suspension
6 All fluid levels 16, Shock absorbers
7 All lights 17, Tiestiead wear
8 Fuel filter
9 Air cleaner filter
10 PCV, vaive
11 Windshield wiper
blades

20. Test drive
comments

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OVERHAULS

Mazda Parts

% & Accesscries

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* ENGINES
* TRANSMISSIONS
* CLUTCHES

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INSURANCE
CORPORATION

OF BRITISH COLUMBIA
AUTO TOPIC

bility can take some years to
resolve. The money reserved for
these claims is carried over from
year to year in a fund for unpaid
claims.

At the end of 1990, there was
just over two billion dollars in this

fund — $148 million of that for
cluims made prior to 1986. That
money is invested and carning in-
come.

Over time, some claims are set-
ted for jess money than was
reserved for them. Others are
reviewed and more money is set
aside if necessary.

Now, back to the investment
income. The $332 million we
earned last year paid all our ad-
ministrative expenses, brokers’
commissions, premium taxes and
even some claims costs.

Every investment dollar ICBC

* Automatic
«x Power steering = Mirrors

earns each year is a dollar B.C.
motorists don’t have to pay in
premiums — remember, to break
even we need enough money to
pay all of our expenses. With ad-
ministration costs covered, ‘tall™
you're paying for is the cost of
claims.

AS you can see by the sheer size
of these funds, the job of manag-
ing B.C."s auto insurance system
is a big one. But it’s nothing
compared to the effort needed to
prevent accidents that make these
funds necessary in the first place.

* Power Dual

w Power brakes * Tinted glass

* Rear (ABS)

* Captain chairs

brakes % Full carpeting

* AM/FM cassette

« 5 speed

x Double Walt Box}

* Power brakes» Full carpetirig

* Tinted glass
* AMIFM
cassette radials
* etc., etc.

& Qua? mirrors
* All-season

Bx BEST WARRANTY IN THE BUSINESS x BEST SELECTION}

fx BEST TRADE ALLOWANCE « BEST SERVICE

Same location and serving B.C. for 78 years
SIMILAR, SAVINGS ON 323, PROTEGE, 626, RX7

253-4221

1550 E. HASTINGS

VANCOUVER, B.C.
Toll-free cail 1-800-S72-4862.

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