ICBC glitch means refunds for 240,000 overcharged drivers

Cheques could average $162 for B.C. motorists who paid too much optional auto insurance

ICBC will send refunds to 240

ICBC will send refunds to 240

ICBC says it accidentally over- or under-charged nearly 600,000 of its optional auto insurance customers and will issue refunds with interest that could average $162 to those who paid too much.

Most motorists aren’t affected by the glitch, which happened because incorrect descriptions were assigned years ago to some vehicles. The error was uncovered last year with ICBC’s move to a new computer system.

About 1.8 per cent of optional insurance customers paid an average of $21 too much per year as a result and 240,000 drivers are owed cumulative refunds stretching back as far as 2008, according to ICBC.

The public auto insurer is updating vehicle descriptions for past years so it can accurately recalculate historic premiums and repay improper charges for the last six years – as far back as its legacy computer system permits.

Another 350,000 customers paid less than they should have by about $34 per year on average but ICBC won’t bill them retroactively.

Affected drivers are to be notified and refund cheques will go out in July.

ICBC expects to pay out $30 to $36 million in refunds plus interest of $3 million, and refunds will average $137 to $162, depending on the final number of incorrect charges that are revised.

It estimates it lost $71 million in underpayments since 2008.

The faulty vehicle descriptions affect only optional insurance, not basic rates.

ICBC’s board is also appointing an outside auditor to review the error.

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.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Wild Wise Sooke is pushing to get local waste management companies to hop on board to provide bear-resistant bins as an option for residents. On Nov. 23, Sooke council voted to write a letter of support for Wild Wise to send to companies such as GFL Environmental Inc. and Sooke Disposal Ltd. (Black Press Media file photo)
Wild Wise Sooke continues push for bear-resistant bins as option for residents

Bins could cost anywhere from $150 to $300 or more, according to 2019 study

A project on McCallum Road will add 227 residential units to Langford. (Photo courtesy of Highstreet Ventures)
Residential project slated for McCallum Road in Langford

Six-storey development will be built to highest energy-efficiency standards

The public will start to weigh in next month on the possible future uses of Oak Bay Lodge. In the meantime, a request to the province by the City of Victoria to intervene and allow use of at least a portion of the closed facility as temporary shelter space awaits an answer. (Black Press Media file photo)
Oak Bay Lodge redevelopment planning continues, request for temporary use awaits answer

Public consultation on future of CRD-owned site begins next month

The Sooke Christmas Bureau, which serves over 400 hampers to families and residents in need, has extended their deadline to include anyone in need that has missed their Dec. 1 cutoff. (Black Press Media file photo)
Sooke Christmas Bureau extends deadline for hampers

Non-profit group says monetary donations goes further than non-perishables

Motorists wait to enter a Fraser Health COVID-19 testing facility, in Surrey, B.C., on Monday, Nov. 9, 2020. THE CANADIAN PRESS/Darryl Dyck
Another 694 diagnosed with COVID-19 in B.C. Thursday

Three more health care outbreaks, 12 deaths

(AP Photo/Paula Bronstein)
POLL: Has COVID-19 changed your plans for the holidays?

The lights are going up, the stacks of presents under the tree… Continue reading

Anyone with information on any of these individuals is asked to call 1-800-222-TIPS (8477) or visit the website victoriacrimestoppers.ca for more information.
Greater Victoria Crime Stoppers wanted list for the week of Dec. 1

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

Watch Messiah at home with the Sooke Philharmonic

Concert available to stream Dec. 12

Emergency crews used a backhoe loader to clear fire debris from the scene of a fire on Wesley Street Thursday as police and firefighters gathered up propane tanks, stoves and fireplaces used by camp residents to heat tents. (Chris Bush/News Bulletin)
City of Nanaimo dismantles downtown homeless encampment after fire

Four to six tents burned up in Wesley Street fire Thursday, Dec. 3

A demonstrator wears representations of sea lice outside the Fisheries and Oceans Canada offices in downtown Vancouver Sept. 24, demanding more action on the Cohen Commission recommendations to protect wild Fraser River sockeye. (Quinn Bender photo)
First Nations renew call to revoke salmon farm licences

Leadership council implores use of precautionary principle in Discovery Islands

Ten-month-old Aidan Deschamps poses for a photo with his parents Amanda Sully and Adam Deschamps in this undated handout photo. Ten-month-old Aidan Deschamps was the first baby in Canada to be diagnosed with spinal muscular atrophy through Ontario’s newborn screening program. The test was added to the program six days before he was born. THE CANADIAN PRESS/HO, Children’s Hospital Eastern Ontario *MANDATORY CREDIT*
First newborn tested for spinal muscular atrophy in Canada hits new milestones

‘If Aidan had been born any earlier or anywhere else our story would be quite different’

BC Ambulance Services reassures people that the service is well staffed and ready to respond. Photo by Don Bodger
BC Ambulance assures the Island community they’re ‘fully staffed’

‘Paramedics are not limited to a geographical area.’ — BCEHS

(Pixabay)
Canadians’ mental health has deteriorated with the second wave, study finds

Increased substance use one of the ways people are coping

Most Read