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

Science fair draws best junior scientists from Vancouver Island to Victoria

200 young science enthusiasts share their inventions and discoveries at UVic

Young cyclist struck near Galloping Goose Trail

Minor injuries reported by police

Vic. Symphony, Jeans ‘n Classics will rock you with the Best of Queen

Post-Bohemian Rhapsody, Pops Series concerts bring British band’s music back into spotlight

LOCAL FLAVOUR: Farm Whisperer tackles tough subject of farm succession

Linda Geggie is executive director with CR-FAIR

New Coast Guard ship crashes into Ogden Point breakwater

‘It is fairly unprecedented that it would happen’

VIDEO: Keeping the hope alive, 28 years later

Annual Michael Dunahee Keep the Hope Alive run raised money for Child Find B.C.

Bobrovsky perfect as Blue Jackets blank Canucks 5-0

Vancouver shut out for 10th time this season

Fundraising campaign launched for man caught in SilverStar avalanche

In only two days, the GoFundMe surpassed its $15,000 goal

Victoria Mayor Lisa Helps says future assembly deliberations won’t be closed to public

Reversal comes after Saanich Coun. Judy Brownoff raised concerns

Terror at sea: Helicopter rescues frightened cruise passengers in Norway

The Viking Sky cruise ship was carrying 1,300 passengers and crew when it experienced engine trouble

Search and rescue team helicopters injured climber from B.C. provincial park

A 30-year-old woman suffered a suspected lower-limb fracture in Skaha Bluffs Provincial Park

DOJ: Trump campaign did not co-ordinate with Russia in 2016

Attorney General William Barr said special counsel “does not exonerate” Trump of obstructing justice

Most Read