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

The entrance to one of the tiny homes in Victoria’s Tiny Home Village. (Kiernan Green/News Staff)
Victoria Tiny Home Village resident evicted for lighting small fire

No damage or injuries, but zero-tolerance rule stands

Saanich Fire Department is responding to a structure fire in the 3300-block of Quadra Street on May 18. (Devon Bidal/News Staff)
Smoking pot on stove ignites Saanich fire call on Quadra Street

Traffic impacted in northbound lanes of 3300-block shortly after 11 a.m.

The Victoria Police Department is seeking information on an assault that occurred in downtown Victoria on May 10. (Black Press Media file photo)
Police investigating downtown Victoria assault on youth

Witness also attacked after trying to intervene

A prowling coyote proved no match for a stray black cat who chased it out of a Port Moody parking lot Friday, May 14. (Twitter/Screen grab)
VIDEO: Little but fierce: Cat spotted chasing off coyote by Port Moody police

The black cat is seen jumping out from under a parked car and running the wild animal out of a vacant lot

Announced Tuesday, May 18 by Public Safety Minister Mike Farnworth, the province added gyms, dance and fitness studios to its list of places where face coverings are mandatory (AP/Steven Senne)
Masks now required at all times inside B.C. gyms, including during workouts

The province added gyms, dance and fitness studios to its list of places where face coverings are mandatory Tuesday

Reinhard “Bud” Loewen of Abbotsford has now been charged with 21 counts of sexual assault related to his massage business. (Facebook photo)
Former Abbotsford masseur now faces 21 counts of sexual assault

Bud Loewen of Bud’s Massage Therapy initally faced three charges

Over the years, police have worked with sketch artists to draw what the boys could have looked like at the times of their deaths. (Vancouver Police Department)
DNA breakthrough expected in cold case involving murdered Vancouver boys, 7 and 8

Forensic analysts are working to identify relatives of the children, whose bodies were found in Stanley Park in 1953

Livestock competitions have been part of the Pacific National Exhibiton for more than a century. (Maple Ridge News files)
B.C. provides $50 million to keep major tourist attractions going

Tour bus companies also eligible for latest COVID-19 aid

Derek Descoteau with his trusty dog Harvey. (Photo submitted)
Friends provide continuing comfort for family in wake of unresolved senseless B.C. murder

Case remains before the courts five years after Derek Descoteau’s abrupt stabbing death in Chemainus

The Nanaimo Timbermen and Victoria Shamrocks compete in Western Lacrosse Association action in Nanaimo during the 2019 season. (News Bulletin file photo)
WLA cancels another senior A lacrosse season due to COVID-19

Western Lacrosse Association, Major Series Lacrosse announce cancellation of Mann Cup

The top photo is of a real carbine rifle, while the bottom photo is the airsoft rifle seized from a Kelowna man on May 15. (Contributed)
RCMP issue warning: ‘Imitation firearms need to be dealt with responsibly’

A man brandishing his airsoft rifle in public had his weapon seized by Mounties on Saturday

Abbotsford Regional Hospital. (Black Press Media files)
Canada marks 25,000 COVID-19 deaths since the pandemic began

6 in every 10,000 Canadians died of COVID-19 since March 9, 2020

Most Read