Sunday, April 13, 2014
The $36 Million Mistake
ICBC to refund 40,000 drivers for insurance overcharges dating back to 2008
Released by ICBC
s part of the move to a new computer system for our insurance business, ICBC identified less than five per cent of our optional insurance customers have an incorrect description assigned to their vehicle which impacts what they pay for their optional insurance.
Based on analysis to date, ICBC estimates on average 1.8 per cent or 40,000 optional insurance customers per year had an incorrect vehicle description which resulted in an overpayment on a portion of their optional insurance. The average overpayment per year was $21. ICBC also estimates on average 2.7 per cent or 58,000 optional insurance customers underpaid on a portion of their optional insurance per year. The average underpayment per year was $34.
“We are going to ensure all of our customers who overpaid on their optional insurance over the last six years receive full refunds with interest,” said Mark Blucher, president and CEO. “The modernization of our systems will ensure this doesn’t happen in the future and we sincerely apologize for any inconvenience this has caused our customers.”
ICBC is working on the five principles outlined by Transportation Minister Todd Stone including:
ICBC is committed to having this issue resolved within 90 days.
“ICBC’s first responsibility is to our customers,” said Jatinder Rai, chair of ICBC’s board. “The board and management have been working to identify and resolve this complex issue as a priority.”
Updates to vehicle descriptions will be made in the coming months. New technology will use the vehicle identification number (VIN) provided by the vehicle’s manufacturer to automatically capture the vehicle description (make/model/type). Today, this process is done manually.
ICBC is working to update vehicle descriptions for affected customers, including looking back over the last six years to July 1, 2008, to refund customers who paid too much for their optional insurance. Customers who underpaid will not be charged the difference for prior years. ICBC is going as far back as its insurance system is able to accurately recalculate historical premiums for our customers.
What Customers Need to Know
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