February 2008 news releases

Provincial news releases

ICBC improves road safety across B.C. — February 21
ICBC investigates sales of write-offs — February 13
New vehicle owners protected — February 4

Regional news releases

Fake claim proves costly for a Richmond resident — February 28
Car crashes remain the number one killer of youth — February 21
Ucluelet man attempts to defraud ICBC — February 8

ICBC improves road safety across B.C. — February 21

Approximately $8.9 million spent in 2007 helps prevent crashes and reduce claims costs

ICBC has been helping improve road safety at high-crash locations in B.C. communities since its Road Improvement Program was launched in 1989. In 2007, ICBC invested approximately $8.9 million in funding for safety improvements to roads across the province.

ICBC's Road Improvement Program works in partnership with municipalities and the provincial government to make roads safer. In 2007, ICBC helped fund approximately 300 projects and engineering studies in 73 communities across the province.

"Road improvements are recognized worldwide as one of the most effective ways to improve safety for drivers and pedestrians," said John Les, Minister of Public Safety and Solicitor General. "By making intersections and other high-crash locations safer, we are reducing crashes, preventing injuries, and saving lives," said Les.

Projects earmarked for road improvement investments are assessed to ensure they make B.C. roads safer for all drivers and translate into lower claims costs for ICBC and its customers. The most recent independent evaluation of ICBC-funded road improvements found a four-to-one return on investment over two years following a project's completion.

ICBC road safety investment concentrates on the systemic causes of crashes- drivers, roads and vehicles- and supports programs that are proven to prevent crashes and deliver the most significant claim savings benefits to its customers.

"The reality is, many of our roads were designed to standards existing in the 1950s or '60s," notes ICBC's Nicolas Jimenez, director of Road Safety. "New engineering standards such as dedicated left-turn bays, anti-skid treatments, roundabouts and traffic signal upgrades give us an opportunity to reduce crashes significantly. All ICBC-funded road improvement projects must achieve a return on investment. These savings are then passed onto our customers through low and stable insurance rates."

To find out more about projects in your community, go to ICBC's road improvement program.

Media Contact:
Kate Best
604-982-2480

ICBC investigates sales of write-offs — February 13

Investigation focuses on vehicles repaired at ICBC's training facility

ICBC today announced that it has launched an investigation into the sale of all vehicles that have been repaired at the company's research facility in Burnaby over the last 10 years.

The investigation is focused on whether the previous damage history of vehicles repaired and sold from ICBC's Material Damage Research and Training (MDR&T) facility were properly documented and disclosed to customers. The investigation will also look at employee conduct in the course of these transactions.

MDR&T is a state-of-the-art facility that focuses on vehicle repair research and training. The facility employs 12 ICBC staff. Approximately 20 vehicles are repaired at the Burnaby facility in a typical year.

There are a maximum of 174 vehicles where the repairs may not have been properly documented and disclosed. ICBC is in the process of contacting the owners of these vehicles.

ICBC has no reason to believe that any of these vehicles are unsafe or that there are any issues with the quality of the repairs. To provide full assurance to our customers, ICBC will have these vehicles inspected.

As a company that is committed to earning and maintaining the confidence of our customers in all of its dealings, ICBC takes any allegations of potentially inappropriate or improper disclosure very seriously.

ICBC has temporarily shut down its MDR&T facility to permit a thorough investigation. The company is working to conclude the investigation in a comprehensive, yet expeditious manner.

With the investigation underway, ICBC is unable to provide further details at this time. The company will share the outcome of the investigation when it is complete.

Media Contact:
Doug McClelland
604-982-2476

Doug Henderson
604-982-1332

New vehicle owners protected — February 4

ICBC introduces its best protection for new vehicle owners

Every new vehicle owner wants the best insurance possible to protect their investment. With this is mind, ICBC has introduced New Vehicle Replacement Plus, a unique insurance option that provides customers with ICBC’s best coverage for new vehicles.

With New Vehicle Replacement Plus, a vehicle will be written off when the damage exceeds 50 percent of its market value, and the owner gets to replace it with a brand-new version of their vehicle or receives the cash equivalent. Under a standard insurance policy a vehicle is written off when the damage is much closer to market value.

“Many new car owners don’t want a vehicle back that has had major repairs, so we are providing these customers with another option,” said Kellee Irwin, vice-president of Underwriting. “We’ve lowered the threshold for New Vehicle Replacement Plus customers to give them the peace of mind in knowing that if they get in a major crash they are still going to have a brand new vehicle.”

The other benefits of New Vehicle Replacement Plus are that there is no deductible for written-off vehicles and when a vehicle is repairable all repairs will be completed using new parts from the manufacturer. The customer also gets to choose the repair shop and all repairs are fully guaranteed when using an ICBC c.a.r.shop Accredited Collision Repairs facility as long as the customer owns the vehicle.

New Vehicle Replacement Plus is available to customers with a brand new vehicle (current or future model years only), and who currently have ICBC optional coverage with a minimum discount of 20 percent.

New Vehicle Replacement Plus represents another choice for ICBC customers wanting to protect their new vehicle. For customers with a vehicle that is three years old or newer, ICBC also offers Replacement Cost Coverage or Limited Depreciation coverage.

Replacement Cost Coverage offers many of the same benefits of New Vehicle Replacement Plus, including having a written-off vehicle replaced with a brand-new vehicle and having repairs completed using new parts from the manufacturer. The added benefits for New Vehicle Replacement Plus are the 50 percent write-off threshold and no deductible for written-off vehicles. Limited Depreciation coverage provides customers with compensation for the depreciation of their vehicle.

Customers are encouraged to visit an Autoplan broker to find the coverage that’s right for them or visit new vehicle replacement plus for more information.

Media Contact:
Doug Henderson
604-982-1332

Regional news releases

Fake claim proves costly for a Richmond resident — February 28
Car crashes remain the number one killer of youth — February 21
Ucluelet man attempts to defraud ICBC — February 8

Fake claim proves costly for a Richmond resident — February 28

ICBC has a zero tolerance for fraud

Elite Fung of Richmond is facing the consequences of making a fake claim with ICBC. He recently appeared in the Vancouver Provincial Court, where after a two day trial, he was found guilty of providing false information to ICBC, an offence under the Sec 42.1 of the Insurance (Motor Vehicle) Act. He was fined $3500. And ICBC has denied his claim.

"Zero tolerance for fraud is one of ICBC's strategies to help keep rates low and stable," said Steve Tripp, manager of ICBC's Special Investigation Unit. "It is not acceptable to ICBC to sit back and simply pass the cost of fraud onto our customers," said Tripp.

At 2 pm on May 7, 2006, Fung reported to Vancouver Police that his 2004 Mazda RX-8 was stolen from Burrard Street and Nelson Street in Vancouver. However, Richmond RCMP had already recovered Fung's vehicle at 5 am, that same day. The vehicle had been abandoned at Sea Island Way and Miller Road, only three kilometres away from Fung's residence in Richmond. The vehicle was heavily damaged, appearing as though it had crashed into a lamp post. There were no signs of forced entry, ignition damage, or tampering to the vehicle's anti-theft device.

When making his ICBC claim, Fung gave details of his whereabouts on the evening of May 6 and the early morning of May 7, 2006. According to Fung's statement, he also claimed his cellphone was in the vehicle at the time of the theft. As part of ICBC's investigation, a search warrant for Fung's cellphones records was obtained. In reviewing the records, it was determined the cellphone was never stolen. This contributed to the evidence that Fung willfully provided a false statement to ICBC while making his claim.

"ICBC seeks to identify potential fraud before the claim is paid, but also pursues fraudulent claims through civil lawsuits and criminal prosecutions," said Tripp.

ICBC estimates that fraud costs each of ICBC's 3 million policyholders in the range of $100 to $150 per year. The public is encouraged to help fight fraud by reporting suspicious, exaggerated or fraudulent claims. Information provided to ICBC's fraud tips line (604-661-6844 or 1-800-661-6844) is confidential and callers can remain anonymous.

Media Contact:
Doug Henderson,
604-982-1332

Car crashes remain the number one killer of youth — February 21

Road safety speaker Cara Johnston-Filler talks to teens about making smart driving choices

With graduation just around the corner, school hallways are abuzz with anticipation. The last thing on students' minds is the sobering fact that car crashes are the number one killer of youth between the ages of 13 and 21.

To drive home this reality, road safety speaker Cara Johnston-Filler will share her story and the consequences of speeding with many students across the Vancouver Island region. "ICBC wants to educate teens about safe driving and the power of choice," said Brian Sargent, ICBC Road Safety manager, the sponsor of the presentation.

"Speed and alcohol are the top contributing factors in fatal crashes involving young drivers. Thrill-seeking and risk-taking behaviours combined with driver inexperience often play a role," noted Sargent. "Road safety speaker Cara Johnston-Filler gives a compelling and emotionally-charged presentation to remind students to drive responsibly."

Cara watched her identical twin sister, Mairin, die in a speed-related car crash the day after their 18th birthday, during the summer of their graduation from high school. Cara knows what it is like to be young and to think "it'll never happen to me". Cara and Mairin had their whole lives ahead of them. Now, because of someone else's recklessness, Mairin is dead and Cara's life has changed forever. Since two months after her sister's death, Cara has spoken to more than a million students worldwide.

Getting behind the wheel is a risky proposition, young drivers aged 16 to 21 account for eight per cent of all drivers in B.C., but they are involved in 20 per cent of fatal collisions and have more than one and a half times the number of crashes as drivers 22 and over. In 2005, car crashes killed 9 youth and injured around 1,220 in the Vancouver Island area. In BC, there were 76 youth killed and about 9,700 injured during the same time period.

ICBC is working to ensure insurance rates more reflective of the risk each driver presents. Currently, high-risk drivers are not paying enough given the risk they pose on the roads. Charging bad drivers more is one way that ICBC is working to keep rates low and stable for safer drivers.

Cara's 2008 Vancouver Island speaking schedule is attached.

To learn more about road safety speakers and how ICBC is working to keep rates low and stable visit www.icbc.com.

Media Contact:
Tamara McLean,
250 414-7883

Caroline Robinson,
250 729-3518

Ucluelet man attempts to defraud ICBC — February 8

ICBC has a zero tolerance for fraud

John Christopher Majore of Ucluelet is facing the consequences of attempting to defraud ICBC. He recently appeared in Port Alberni Provincial Court, where he pleaded guilty to fraud, an offence under Section 380(1)(a) of the Criminal Code of Canada. He was sentenced to 100 hours community service and two years probation. ICBC has also denied his stolen vehicle claim.

"ICBC has a zero tolerance policy for fraud," said Steve Tripp, ICBC manager Special Investigation Unit. "By combating fraud, ICBC hopes to deter others and recover fraudulent payments, which help to keep rates low and stable for our customers."

On September 15, 2005 Majore purchased insurance for his 1999 Jeep Cherokee. The following day, he reported to police that the Jeep had been stolen. According to the statement he provided ICBC, Majore parked his Jeep on Toquart Bay Road on Friday September 16, 2005 at 11:30 a.m., while he and his girlfriend went into the bush to pick wild mushrooms. They returned approximately six hours later, and discovered the Jeep was gone. The couple decided to hitchhike to Ucluelet to sell their mushrooms and report the theft of the Jeep to the RCMP.

On October 6, 2005, Majore's Jeep was involved in a crash in Ontario. While investigating the crash, the Ontario Provincial Police quickly uncovered the vehicle had been reported stolen in B.C. They questioned the vehicle driver, Robert Broatch, who told police that the vehicle was not stolen but that the owner of the vehicle, Majore, needed money and had given him the Jeep to get rid of.

Majore confessed to ICBC and police that he had tried to get rid of the vehicle so that he could report it stolen and make a false claim. Majore was charged with fraud and had his ICBC claim denied.

Broatch, the driver of the vehicle, was convicted in Ontario Provincial Court of possession of property obtained by crime, Section 354 of the Criminal Code of Canada; dangerous operation of a motor vehicle, Section 249 of the Criminal Code of Canada; and failure to stop at the scene of an accident, Section 252 of the Criminal Code of Canada. Broatch received an eight month conditional sentence, followed by 12 months probation and is prohibited from driving for two years.

"Insurance fraud is not a victimless crime, it affects everyone's insurance rates", said Tripp. "That's why we invest in more fraud prevention and investigation than most property and casualty insurance companies in Canada".

Customers are encouraged to do their part to help fight fraud by reporting suspicious, exaggerated or fraudulent claims. Information provided to ICBC's fraud tips line (604-661-6844 or 1-800-661-6844) is confidential and callers can remain anonymous.