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

Opioids, meth, firearms seized at known Chilliwack drug house

Home on Broadway Street raided on Feb. 15 where homicide occurred Jan. 31

GW Graham basketball girls savour Fraser Valley championship

It’s been a long wait for the Grizzlies, who lost the FV title game the last two seasons.

Chilliwack Curling Club holding open house

If you’ve ever wanted to try the sport, the club invites you to take the plunge this weekend.

Chilliwack MLA John Martin says NDP budget will hurt business, punish taxpayers

‘Family-owned businesses will struggle to respond to this’

Chilliwack-Kent MLA decries ‘classic, big tax-and-spend’ NDP budget

Laurie Throness says budget relies on strong economy but contains no ideas to help it grow

VIDEO: Top 10 B.C. budget highlights

The NDP is focusing on childcare, affordable housing and speeding up the elimination of MSP premiums

Team USA beats Canada 3-2 on the shootout to take home Olympic gold

Americans win their first gold medal since 1998

Two Haida men detained for crossing U.S.-Canada border

Edenshaw and Frisby travelled from Alaska to Prince Rupert for the All Native Basketball Tournament

Alberta takes out full-page ads in B.C. over strained relationship

It’s the latest move between the two provinces over progress on Trans Mountain pipeline expansion

B.C. teacher suspended over allegedly using N-word in worksheets

Trafalgar Elementary teacher under investigation by Vancouver School Board

Toddler swept away in Ontario floods

Toddler missing as flooding forces thousands from their homes in Ontario

BC BUDGET: New money helps seniors’ care shortage

Job stability for care aides key to recruitment, union leader says

Mixed messages on B.C.’s efforts to cool hot housing market

Economist says undersupply of homes in Metro Vancouver, Victoria and Kelowna will keep prices high

Foot found near Victoria belonged to missing Washington man

Coroner says no foul play suspected in death of 79-year-old Stanley Okumoto

Most Read