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.

Just Posted

Risk of ‘deadly avalanches’ leads to warning for B.C.’s south coast

Weak layer of snow on Vancouver Island, Lower Mainland could trigger an avalanche

Another snowfall warning for Lower Mainland

Another 5-10 cm expected for Metro Vancouver, Fraser Valley and Sunshine Coast

Harrison to participate in inter-municipal business licence program

Construction companies and related businesses will be able to work across the Fraser Valley in 2020

Saskia and Darrel kick off spring tour with Chilliwack concert

Stories of the Great Plains delivered in Gaelic, French and more

RCMP officer reaching out to youth about intimate partner violence

Chilliwack officer and friends of Maple Batalia team up to encourage bystanders to speak up

VIDEO: Wheelchairs teach Agassiz students acceptance through sport

Teacher Donna Gallamore brought wheelchairs to the Kent Elementary for learning and fun

B.C. Speaker Darryl Plecas resumes battle with suspended staff

Committee meets at B.C. legislature to consider new allegations

North BC broken axle derailment could happen again: TSB

CN coal train derailment caused by broken axle can happen again without a different way to inspect

Former B.C. fire chief sues his city after termination

Keith Green’s civil claim says that he believes he was wrongfully terminated

B.C. man injured in police shooting now in wheelchair

“Shots were fired by police and the Kelowna man was transported to the hospital with serious injuries.”

Peter Tork, Monkees’ lovable bass-guitar player, dies at 77

Tork, Micky Dolenz, David Jones and Michael Nesmith formed the made-for-television rock band

From a drunk judge to Clifford Olson: George Garrett recounts a life in B.C. news radio

New book from ‘Intrepid Reporter’ George Garrett offers readers a glimpse behind the headlines

Wife remembers B.C. man killed in possible case of mistaken identity

Rex Gill was in Kamloops working to support his family after oilfield job dried up

Millennial men least likely to have a family doctor: Statistics Canada

Report found more women have primary care physicians, compared with men

Most Read