Some Insurance Corporation of BC (ICBC) customers have overpaid their optional insurance for the past six years, putting an extra $36 million into ICBC coffers, the corporation has announced. However the same system of errors cost ICBC about $71 million from customers who were undercharged an average of $34 per year. The BC Transportation Minister has ordered that all affected customers be refunded the overpayment, which averaged $21 per year, per customer.
An incorrect vehicle description, is to blame says ICBC. The errors were discovered as part of the move to a new computer system, ICBC said in a press release.
Based on analysis to date, ICBC estimates on average 1.8 per cent or 40,000 optional insurance customers per year had an incorrect vehicle description which resulted in an overpayment on a portion of their optional insurance. The average overpayment per year was $21. ICBC also estimates on average 2.7 per cent or 58,000 optional insurance customers underpaid on a portion of their optional insurance per year. The average underpayment per year was $34.
“We are going to ensure all of our customers who overpaid on their optional insurance over the last six years receive full refunds with interest,” said Mark Blucher, president and CEO. “The modernization of our systems will ensure this doesn’t happen in the future and we sincerely apologize for any inconvenience this has caused our customers.”
ICBC is working on the five principles outlined by Transportation Minister Todd Stone including:
- the error will not result in higher premiums;
- all overpayments will be repaid with interest;
- customers who were undercharged are not to be billed retroactively;
- the problem will be fixed; and
- the board will appoint an outside auditor to review this issue.
ICBC is committed to having this issue resolved within 90 days. Updates to vehicle descriptions will be made in the coming months. New technology will use the vehicle identification number (VIN) provided by the vehicle’s manufacturer to automatically capture the vehicle description (make/model/type). Today, this process is done manually.
ICBC is working to update vehicle descriptions for affected customers, including looking back over the last six years to July 1, 2008, to refund customers who paid too much for their optional insurance. Customers who underpaid will not be charged the difference for prior years. ICBC is going as far back as its insurance system is able to accurately recalculate historical premiums for our customers.
New Driver Examinations for Class 5 Re-exams in BC
Also changing at ICBC is the new class 5 road test protocol for driver re-examinations. ICBC will apply the new standard to drivers who are already fully licensed but are having their current capabilities tested.
The new protocol allows for more time prior to and following the test for questions and concerns, to allow the driver to settle their nerves and clarify what is required of them, as well as to understand the outcome of the test and prepare for a subsequent test if they do not pass.
Also, in comparison to tests taken by new drivers in the Graduated Licensing Program (GLP), the re-examination will require fewer repetitions of driving skills, to more closely matches an older driver’s situation.
Finally, the test marking form has been simplified to be easier to understand. The standards that drivers are expected to meet during the tests have not changed.
Want to increase your ICBC Autoplan knowledge?
ILScorp offers two new courses for Autoplan agents. The introductory course provides new orientation training for those wanting to learn more about ICBC’s Autoplan insurance in BC. The coverages and exclusions course provides in-depth insurance training on ICBC’s Autoplan insurance coverage and exclusions.
Both courses are now included as part of your subscription to either the ILScorp General Insurance CE Courses or Adjuster CE Courses, or for individual purchase. Each course offers one continuing education credit hour for BC.
