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#521 Mike K.

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Posted 02 July 2018 - 09:43 AM

Cashing out and purchasing other assets that are also at their highest price points is not a winning game, unless ICBC has plans for a new office complex and is disposing of the existing facility in order to finance another and potentially consolidate its operations.

 

Whatever monies are generated through the sale of the building will eventually fall short of future lease commitments, and those commitment will be paid for by rate payers


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#522 Bob Fugger

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Posted 02 July 2018 - 02:02 PM

No. A generalization like that doesn’t hold water. I could outline an infinite number of scenarios demonstrating how an asset sale, vendor leaseback and subsequent capital investment to disprove what you just wrote. Here’s just one:

If I sell an asset for $1M in Victoria, buy two assets for $500k in Penticton (or Winnipeg, or Wisconsin or Zimbabwe), in 5 years they are worth $1M and I paid let’s say $500k over that period in rent, that’s still a return of $0.5M (if you exclude the initial $1M investment as profit).

On top of that, the $1M Victoria asset has already been depreciated so there’s no tax deduction available any longer, but the lease payments are fully tax deductible as a current expense. So that $500k in profit is actually worth more because of the rent expenses I’ve been deducting along the way.

#523 Mike K.

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Posted 02 July 2018 - 02:28 PM

If things worked like that we’d all be rich, and if ICBC had a handle on its finances my insurance rates would be dropping, not rising.

Do we know for a fact ICBC plans to re-invest the relatively measly sum from this sale into real-estate, or will it use the few million dollars to help balance the books?

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#524 Bob Fugger

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Posted 02 July 2018 - 03:01 PM

I never suggested that it’s a sure thing. But just like every insurance company, they have an investment portfolio and a team of finance professionals that manage money.

As for knowing for a fact if it will reinvest the capital or put ornaments towards its bottom line, it’s emphatically the former. Firstly, because of insurance industry legislation that requires a certain amount of solvency and capital reserves. And secondly, ICBC doesn’t need to sell the farm to pay for the cattle because it will no longer be in massive financial hole because of how minor injuries will be treated come April 1, 2019.

ICBC’s financial situation came about primarily because it’s the last full tort jurisdiction in North America and relatedly, because of how it handles claims (and claimants) has resulted in a massive uptick in represented claims (ie claimants lawyering up), which are more complicated and therefore more expensive.
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#525 Mike K.

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Posted 02 October 2018 - 06:41 AM

Get ready to pay more for ICBC insurance if you let friends or family borrow your vehicle.

Starting next September, vehicle owners who allow friends or family to borrow their car will be expected to pay a $50 fee. Any one person using the car more than 12 days of the year will be expected to be added to the insurance plan for that vehicle which will result in an increase in insurance premiums on that vehicle if their rates are higher than the primary driver’s rates.

If a borrower crashes the vehicle and the $50 fee was not paid, ICBC will levy stiff fines against the owner (those fees are not described in the article).

New fees are also coming for “L”-rated learner drivers using a family vehicle.
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#526 rjag

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Posted 02 October 2018 - 08:08 AM

My wife and I share our 3 cars, I wonder if that means the $50 would have to apply to each car? Also the 2 daily drivers are in her name and the toy is in mine, I'm registered as principal driver for one of the DD's but any way you look at this its a cash grab like the health and school tax. 

 

Get ready to pay the highest rates in the country for the luxury of public insurance brought to you by Joy McPhail



#527 Mike K.

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Posted 02 October 2018 - 08:20 AM

You can skip the $50 and just have your wife registered as a secondary driver where 25% of your premium is extended to her, no?

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#528 rjag

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Posted 02 October 2018 - 08:26 AM

You can skip the $50 and just have your wife registered as a secondary driver where 25% of your premium is extended to her, no?

 

Will ask my insurance guy about this. The funny thing is, they say its not a cash grab so why is it required? What does it accomplish? 



#529 Mike K.

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Posted 02 October 2018 - 08:30 AM

The $50 is optional, but should your buddy who borrowed your truck crash you're going to face stiff fees. Those fees are not yet identified, though.

 

It's so frustrating that premiums continue to rise so rapidly for the lowest risk category. It's $1,000/year now with the largest discount and a no-frills, no-collision policy.  :mad:


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#530 tjv

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Posted 02 October 2018 - 08:31 AM

Just another good reason to scrap ICBC and bring in private insurance


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#531 Jason-L

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Posted 02 October 2018 - 09:11 AM

Just another good reason to scrap ICBC and bring in private insurance

I don't know.  It looks like they're going to do their best to make ICBC more like the fabled "private insurance" everyone is asking for. 



#532 RFS

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Posted 02 October 2018 - 09:31 AM

Just another good reason to scrap ICBC and bring in private insurance

I'm not against that, but I doubt it would change prices as much as you think



#533 tjv

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Posted 02 October 2018 - 11:43 AM

^no, probably not.  I just like the ability to source several insurance quotes because every time I do that I seem to save a lot of money.  Happened this year when I went out for quotes on my house and corporation insurance.  I think combined I saved around $1000



#534 Midnightly

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Posted 02 October 2018 - 03:58 PM

so now i will need to add my husband as a secondary user to my car (he might use it 6x a year) now would that also effect my insurance rates?



#535 Mike K.

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Posted 04 October 2018 - 06:55 AM

No, as long as he’s at or above your discount level.

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#536 rjag

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Posted 04 October 2018 - 09:33 AM

MADD and operation Red Nose are concerned at this change, I also wonder how that plays out if you take your car in for servicing and the mechanic takes it out for a drive.

 

There has to be exceptions to this to make people buy in



#537 DustMagnet

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Posted 04 October 2018 - 12:42 PM

Not to mention valet parking...


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#538 LeoVictoria

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Posted 04 October 2018 - 12:48 PM

Will ask my insurance guy about this. The funny thing is, they say its not a cash grab so why is it required? What does it accomplish? 

 

Because ICBC financials are a disaster.   Rates need to rise or payments need to be cut.  Likely both.



#539 tjv

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Posted 04 October 2018 - 02:28 PM

I do wonder how much of that is from a high overhead



#540 RFS

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Posted 04 October 2018 - 02:44 PM

Unpopular opinion: ICBC's financial crisis and high rates are a symptom of decades of unsustainable mass immigration into BC. Particularly lower mainland

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