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 will send refunds totaling $38 million to customers it overcharged since 2008.

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

Woman killed in head-on crash near Vanderhoof

RCMP say driver crossed the centre line and hit a loaded fuel tanker truck

African Children’s Choir making a difference in the world

Waroto Children’s Choir celebrate Christ and caring for community on six month world tour

Snowpack at normal levels, but El Niño is lurking

Despite a warmer than usual winter that has produced a dearth of… Continue reading

Letter: New party with a strong platform could form majority government in B.C.

Voters fed up with BC’s political parties open the door for a new party to enter BC politics

‘Tripod’ delays access to Unist’ot’en camp

Social media rumours of cultural significance quashed, meaning police “exclusion zones” should end.

Rare ‘super blood wolf moon’ takes to the skies this Sunday

Celestial event happens only three times this century

Company issues lifetime ban after man jumps from cruise ship

Nick Naydev posted the video last week showing him standing on the balcony of the Symphony of the Seas

Parents in this B.C. city can no longer opt kids out of class for personal beliefs

Change comes as part of ‘big overhaul’ of school district’s learning resources policy approved by board

BC Hydro scammers bilked customers out of nearly $45,000 in 2018

Nearly 2,000 people reported scams to the utility, as they continue to be more common

Good news: Peak flu season over in B.C.

B.C. Centre for Disease Control says that while peak season is over, rates remain high this time of year

B.C. university students dumpster dive to shed light on food waste

Eating only from dumpsters, the students hope to raise money for food banks in Northern Canada

B.C. woman posts to Facebook after she and nephew reported missing for days

Roseanne Supernault says both she and her six-year-old nephew are fine and she has contacted police

Unruly passenger forces B.C.-bound flight to divert to Calgary

Police say charges are pending against a woman in her 40s

Inflation rises as higher airfares, veggie prices offset cheaper gas

Statistics Canada says inflation accelerated to two per cent in December

Most Read