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

Grand Forks celebrates the holidays with Santa Claus parade, light up

The Christmas tradition was a hit on Friday night.

RDKB receives funding for disaster response ‘work space’ in Midway

The work space and storage will be used by disaster response volunteers.

Christina Lake Ladies’ Golf finishes successful year

The team starts back up again in April – new members welcome!

Border Bruins lose to Beaver Valley on home ice

The team will play the Jack this Friday at 7 p.m.

Feeling festive at annual Midway Christmas party

The party featured a visit from Santa

Cannabis gift ideas for this holiday season

Put the green in happy holidays, now that cannabis is legal in Canada

Woman forcibly confined, sexually assaulted between Creston and Cranbrook

The suspect forced the woman into her vehicle before driving along Highway 3

‘I thought I was dead as soon as I saw the gun’

Keremeos gas station attendant tells story about man with gun coming to store

‘People talk about deep sadness:’ Scientists study climate change grief

Some call it environmental grief, some call it solastalgia — a word coined for a feeling of homesickness when home changes around you.

As protectors abandon Trump, investigation draws closer

Cohen was sentenced Wednesday to three years in prison for an array of crimes.

Senate delays start of sittings in new home, delaying start of broadcasts

The Senate and House of Commons are moving into temporary homes for the next decade as a result of long-planned and badly needed renovations to the Centre Block.

UK leader seeks EU lifeline after surviving confidence vote

EU leaders gather for a two-day summit, beginning Thursday, which will center on the Brexit negotiations.

French police try to catch attack suspect dead or alive

Local authorities increase death toll to three, including 13 wounded and five in serious condition

BCHL’ers blanked by Russia at World Junior A Challenge

Canada West loses battle of the unbeaten teams in the preliminary round

Most Read