ICBC to mail out $38 million in refunds for overcharges

Management knew of errors on auto insurance rates since 2009, hid problem from board: Auditors

ICBC is preparing to mail out 309,000 refund cheques ranging from $1 to $350 to optional auto insurance customers it overcharged since 2008.

Wrong rates were used because of incorrect descriptions assigned years ago to many vehicles that are only now being fixed.

The average customer who overpaid all six years will get a refund of around $108, ICBC spokesman Adam Grossman said. The cheques will begin to go out around Aug. 20.

The average overpayment was $18 per year.

The refunds plus interest being paid total nearly $38 million.

Nearly 370,000 other motorists were undercharged because of the glitches.

ICBC won’t go after them for the $53 million in lost revenue.

The faulty vehicle descriptions affected only optional insurance, not basic rates.

The refunds were calculated as part of two independent external reviews that checked millions of insurance transactions over the past six years.

Auditors who examined ICBC’s handling of the issue concluded ICBC knew the problem was systemic as early as 2009 but management hid it from ICBC’s board of directors until mid-2013.

Various fixes were contemplated but discarded, according to the auditors’ report.

ICBC managers feared a solution might harm its relationship with brokers and that disclosure of inaccurate pricing would hurt ICBC’s business position against optional insurance competitors.

The corporation ultimately opted to fix the errors and issue refunds as part of its sweeping $400-million technology upgrade program.

The long-running overcharges were finally made public in April by Transportation Minister Todd Stone – only after he was directly questioned by the media.

ICBC’s board had intended to wait until it had a refund strategy ready to roll out.

Customers renewing their auto insurance since July have been required to update their vehicle’s descriptions, Grossman said.

The error isn’t expected to recur because ICBC’s modernized system will pull the correct description from the vehicle identification numbers, instead of being entered manually by Autoplan agents.

Just Posted

Province announces $100-million grant funding for Northwest communities

The Northern Capital and Planning Grant will go to four regional districts and 22 municipalities

Prince Rupert Gas Transmission project searches for partners

TransCanada is renewing permits for its natural gas pipeline project to North Coast.

Coastal GasLink stops work to investigate archaeological find

OGC archaeologists are en route to the Houston-area site where Unist’ot’en report finding stone tools

Coastal GasLink prepares sites of construction work camps

Unist’ot’en condemn 14 ‘man camps’ housing 500-800 workers as threatening safety of women and children

TSKLH Nation sues Province over Brucejack mine revenue sharing

The Tsetsaut/Skii km Lax Ha seeks to assert rights and title in the area around Pretivm gold mine.

Trudeau’s principal secretary, Gerald Butts, resigns amid SNC-Lavalin furor

Butts categorically denies the accusation that he or anyone else in the PMO improperly pressured former attorney general Jody Wilson-Raybould

Lost a ring? This B.C. man will find it for you

Chris Turner founded The Ring Finders, an international directory of metal detector hobbyists

Poverty coalition has high hopes for B.C. poverty reduction strategy

Funding allocation expected to be released with 2019 budget

‘How did we get here?’: B.C. mom of transplant recipient worries about measles outbreaks

Addison, 7, cannot get a live vaccine because she has a heart transplant

NDP Leader Jagmeet Singh calls for public inquiry over SNC-Lavalin questions

Vancouver member of Parliament Jody Wilson-Raybould resigned from cabinet last week

Canadian airlines waiting for guidance from Ottawa over X gender option

Major U.S. airlines said they will change their process so passengers can identify themselves along non-binary lines

Moose Hide campaign takes message to Canadian schools

Campaign launches new K-12 education platform

‘Violent’ B.C. man wanted on Canada-wide warrant

Prince George man with ties to Vernon sought by police

Homicide police investigate assault turned deadly in Surrey

60-year-old man died at hospital after assault

Most Read