34 - Friday, June 12, 1992 ~- North Shore News

Putting ICBC’s cash flow into perspective

Ken
Hardie

AUTOTOPIC

MUCH HAS been reported
on the state of ICBC’s fi-
nances over the past few
months. The forecast of a
$150 million deficit this year
is an illustration of the size
of the challenge to keep a
lid on auto insurance
premiums...much less bring
them down.

To put things in perspective,
Set’s look at the corporation’s
dollar flow last year.

Most of ICBC’s income for
1991 carne from two sources,
motorists and investments. In all
the corporation earned $1.5 billion
(with a ‘*‘B!"’) in premiums for
Autoplan coverages. Those who
collected more than five penalty
points for traffic convictions
kicked in almost $17 million.

Like all insurance companies,
ICBC invested premiums, funds
set aside for unsettled claims and

Currently
scheduled
BC. Ferry
sailings

THE FOLLOWING are the cur-
tent schedules for B.C. Ferry
Corp. routes between the
mainland, Vancouver Island and
Langdale:

@ Horseshoe Bay to Nanaimo
and Nanaimo to Horseshoe Bay:
In effect until June 25.:

Leave both terminals daily at 7
a.m., 9 a.m., il a.m., 1 p.m., 3
p.m., 5 p.m., 7 p.m. and 9 p.m.
An extra sailing will leave both
terminals at li p.m. on June 25,

@ Horseshoe Bay to Langdale
and Langdale tv Horseshoe Bay:
in effect until June 25.:

Leave florseshoe Bay at 7:30
um., 9:30 a.m., £1:30 a.m., 1:15
2m., 3:30 p.m., 5:30 p.m., 7:25
am. and 9:15 p.m.

Leave Langdale at 6:20 a.m.,
3:30 a.m., 10:39 a.m., 12:25 p.m.,
2:30 p.m., 4:30 p.m., 6:30 p.m.
ind 8:20 p.m.
® Tsawwassen to Swartz Bay and
swartz Bay to Tsawwassen: In ef-
ect until June 25,:

Leave Tsawwassen every day
except Fridays and Sundays at 7
am., 8 a.m., 9a.m., 10 a.m., 11
am., 12 p.m., 1 p.m., 2 p.m. 3
p.m., 4 p.m., 5 p.m., 6 p.m., 7
p.m. and 9 p.m.

Leave Tsawwassen Fridays and
Sundays every hour on the hour
from 7 a.m. to 10 p.m.

Leave Swartz Bay every day ex-
cept. Fridays and Sundays at 7
im., 8 am., 9am., 10 am., I
m, 12 p.m., | p.m., 2 p.m., 3
pm., 4 p.m., 5 p.m., 6 p.m., 7
xm. and 9 p.m.

Leave Swartz Bay Fridays and
cundays every hour on the hour
rom 7 a.m. to 10 p.m,
® Tsawwassen to Nanaimo and
vanaimo to Tsawwassen: Effec-
“ve daily:

Leave both terminals at 5:30
cam, 8 a.m., 10:30 a.m., 1 p.m.,
330 p.m., 6 p.m, 8:30 pom., 11

m.

cash reserves, adding over $315
million more in income. Other
funds came from the sale of
salvage (written-off vehicles} and
from motorists who owed money
to the corporation from claims or
interest on debts.

All told, the corporation’s in-
come amounted to
$1,850,583,000.

Now here's where it all went.

The total value of claims
reported to ICBC amounted to
$1.5 billion. The cost for the cor-
poration’s claims-handling
system, which includes claims fa-
cilities and staff such as adjusters
and estimators, amounted to
about $150 million.

NOW GET

CN Maza cives You &

ICBC's administration support
systems and staff (fer example,
human resources, training, un-
derwriters, purchasing, payroll,
computer technicians, customer
service and traffic safety person-
nel) cost $90.5 million. The in-
dependent brokers who sell
Autoplan earned $111.6 million
and a further $61.5 million went
to the provincial government in
premium taxes.

The corporation’s total expenses
amounted to $1,948,981 ,000.

Subtracting those expenses from
total income yields a year-end
deficit. of $98,398,000, which
ICBC covered from funds set
aside in years it accumulated

44 (In 1991) the corporation earned
$1.5 billion (with a “B!”) in
premiums for Autoplan
coverages. 99

surpluses. Clearly, over 78% of
ICBC’s total income (100% of
premiums) flows through to those
making claims. While ICBC will
take many steps to reduce

Operating and administrative costs
in the upcoming months, the top
Prospect for reducing premiums
remains at street level where the
accidents and losses happen.

oRsI500

equivalent value credit on the 1992 Mazda 323,

MAZPA THROWS

‘THE COMPETITION -

A CURVE. |

re
Northshore Mazda service is now open irom 8:00 a.m. ta 9:00 Pam.
je thru Saturdey. ;
We're offering 2 Great Evening ‘Specia s.
Book after 5:00 p.m. to qualify.

Net of ol Masco
POL es vee

700 BLK MAR
}) NORTH.VAN

1992 MAZDA 323

7992 FAPV LX

Includes: V6 engine, automatic trans., AM/FM, 6 speaker cassette,
power windows, power locks, cruise control, privacy glass, 15°
dluminum wheels, 7 passenger seating, rear ABS brakes, reor

$

STARTING FROM