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 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

Kelowna trial for three men charged in Hope murder delayed 11 months

The trial for the alleged killers of Michael Bonin has been moved to May 2021, was supposed to begin this month

BREAKING: RCMP Emergency Response Team at known drug house in Chilliwack

Armed officers have house surrounded Wednesday before 9 a.m.

Highway 1 closed after body found on highway north of Yale

Coroners Service reportedly on the scene, next Drive BC update at noon

Nurses acknowledged with new scholarship at UFV

Jackie and Dick Newton’s daughter donates to honour nurses who cared for her parents

Harrison officials unveil reopening plan

As Phase 3 takes effect, village amenities, services resume

If Trudeau won’t stand up to Trump, how will regular people: Singh

Trudeau did not directly answer a question about Trump’s actions amid protests

Facing changes together: Your community, your journalists

The COVID-19 pandemic has changed the world in ways that would have… Continue reading

Murder charge upgraded in George Floyd case, 3 other cops charged

Floyd’s family and protesters have repeatedly called for criminal charges against all four officers

Teen cashier praised after paying grocery bill for Aldergrove woman

Otter Co-op’s Brooklyn Roberts asked to pay Tamara Smith’s $44 grocery bill after debit card declined

As two B.C. offices see outbreaks, Dr. Henry warns tests don’t replace other measures

Physical distancing, PPE and sanitizing remain key to reduce COVID-19 spread

After delay, ‘Metro Vancouver’s Largest Indoor Amusement Park’ set to open in Surrey

At Central City Fun Park, ‘things will be a little different than what we had originally planned’

Young killer whale untangles itself from trap line off Nanaimo shore

DFO marine mammal rescue unit was en route as whale broke free from prawn trap line

Racist incident shocks Vancouver Island First Nation

Port Alberni RCMP investigating after video shows truck wheeling through Tseshaht territory

Vancouver Island school principal mourns brother, cousin killed during U.S. protests

Jelks says he’s grateful for the outpouring of support from the community in the wake of this tragedy

Most Read