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

Postmark Group, an Edmonton-based development firm, bought two properties at 6641 and 6643 Sooke Rd. last year, and is reaching out to the community and local groups for feedback before they begin planning the designs for the development. (Photo contributed/Postmark Group)
Waterfront village development eyed for Sooke

Postmark Group development firm bought two properties at 6641 and 6643 Sooke Rd. last year

Alphabet Zoo Early Learning Centre wants to relocate from Langford to 3322 Fulton Rd. in Colwood, but has not been approved for a P-6 zoning by Colwood council. Residents who neighbour the property, have expressed concern to the Goldstream Gazette regarding the potential daycare site. Neighbours Ryan Landa and Selene Winchester said the noise of construction has been disruptive to the area, and the property is not suitable for a daycare. (Photo contributed/Ryan Landa)
Proposed West Shore daycare stirs up controversy amongst neighbours

Neighbouring property owners are concerned about traffic, noise that a daycare would bring to the area

Camp Barnard during the 2019 Pacific Jamboree. (Photo: Camp Barnard)
Camp Barnard near Sooke hopes fundraiser will help it progress on accessibility goals

I Care ‘Bout Camp challenge hopes to raise $100,000 for new lodge, replaced kitchen

The WHL’s Victoria Royals will compete in a 24-game season starting March 26, <strong></strong>based out of a Kamloops and Kelowna B.C. division bubble (Kevin Light/Courtesy Victoria Royals)
‘Important to cherish every moment’: Victoria Royals not taking bubble season for granted

The Victoria WHL team’s coach and GM calls the season a ‘privilege,’ expects fierce rivalries

The Victoria Fire Department was able to contain a fire to one room after a bed placed directly against a heater ignited. (Black Press Media file photo)
Early morning Victoria balcony fire causes $20,000 in damages

Victoria Fire Department said nobody was injured in the fire on View Street

Const. Nancy Saggar, who has 11 years in policing, offers advice for other women who may pursue both policing and family. (Black Press Media file photo)
Pregnancy prompts sage advice from RCMP officer for women thinking about policing

West Shore constable with 11 years experience heads off on maternity leave

Provincial health officer Dr. Bonnie Henry and Health Minister Adrian Dix provide a regular update on the COVID-19 situation, B.C. legislature, March 2, 2020. (B.C. government)
B.C.’s COVID-19 cases: 545 Saturday, 532 Sunday, 385 Monday

Focus on Prince Rupert, Lower Mainland large workplaces

Rising accident rates and payout costs have contributed to billion-dollar deficits at ICBC. (Comox Valley Record)
B.C. appealing decision keeping ICBC injury cases in court

David Eby vows to ‘clip wings’ of personal injury lawyers

Hannah Ankenmann, who works with k’awat’si Economic Development Corporation, winces as she received her first shot of the Pfizer vaccine administered by a Gwa’sala-‘Nakwaxda’xw Family Health nurse. (Zoe Ducklow photo)
Vancouver Island’s small remote towns to get community-wide vaccine clinics

Island Health to take a wholesale approach to immunization, rather than age-based appointments

Anyone with information is asked to call Nanaimo RCMP at 250-754-2345 or contact Crime Stoppers by calling 1-800-222-8477 or submitting a tip online at www.nanaimocrimestoppers.com.
21-year-old motorbike rider dies after crash with ATV on Nanaimo back road

Incident happened Sunday afternoon near Boomerang Lake

(Black Press Media files)
Hosts charged, attendees facing COVID fines after Vancouver police bust party at condo

Police had previously received 10 complains about that condo

Minister of Families, Children and Social Development Ahmed Hussen takes part in an update on the COVID pandemic during a press conference in Ottawa on Tuesday, Oct. 27, 2020. A joint federal and B.C. government housing program announced today aims to help people living in up to 25,000 vulnerable households pay their rent. THE CANADIAN PRESS/Sean Kilpatrick
Federal, B.C. governments announce $517-million rent aid program to help vulnerable

Benefits for those not eligible for B.C.’s Rental Assistance Program or Shelter Aid for Elderly Renters

(BC SPCA)
Is it safe to give your dog some peanut butter? Not always, BC SPCA warns

Some commercial peanut butter ingredients can be harmful to dogs

Most Read