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

PRICK! sees increase in patients

The rainbow friendly service offers STI and HIV screening monthly

First Things First evoking the power of song and play

Environmental group educating through entertainment

Super blood wolf moon fills Okanagan skies, to photographers’ delight

Photographers had a rare chance Sunday to capture a rare lunar eclipse

Creator of trans webcomic series Assigned Male coming to Penticton

Stop is part of French-Canadian author Sophie Labelle’s Serious Trans Vibes Tour

UPDATE: B.C. legislature managers accused of excessive travel, personal expense claims

Clerk Craig James, security chief Gary Lenz call allegations ‘completely false’

Hollywood announces 2019 Oscar nominations

Netflix has scored its first best picture nomination, something the streaming giant has dearly sought

B.C. man fined $10,000 after leaving moose to suffer before death

Surrey man was convicted last week on three Wildlife Act charges

Man charged in 7-Eleven fire in Shuswap granted bail

Accused facing arson charges released with 23 conditions including a 7 p.m. curfew

Signs commemorating Japanese interment in the Shuswap planned

Information on each of the five internment camps in the area will be provided at camp locations

‘Blue Monday’ isn’t real, but depression can be

CMHA encourages people to prioritize their mental health

Anti-pipeline group wants NEB to consider impact of emissions, climate change

Stand.earth filed NEB motion asking to apply same standard to the project as it did with Energy East pipeline

Parole granted for drunk driver who killed B.C. RCMP officer

Kenneth Jacob Fenton will be able to attend alcohol abuse treatment, nearly three years after crash that killed Const. Sarah Beckett

Most Read