August 2009 news releases

ICBC news releases

ICBC's top five tips to avoid trouble when importing a vehicle from the U.S. — August 19
ICBC reports second quarter results — August 12
Fraudsters ordered to pay ICBC — August 5
ICBC legal action protects name and customers — August 5
B.C. drivers come clean — August 4

ICBC's top five tips to avoid trouble when importing a vehicle from the U.S.

That 'deal' may be more trouble than it's worth 

B.C. set a record for vehicles imported from the United States in 2008 – 42,922, more than double the number that crossed the border in 2006. But, in a year when the Canadian dollar also reached parity with its American counterpart, some B.C. drivers found great deals while others found their U.S. vehicle was anything but a bargain.

"It's imperative buyers gather as much information as possible about the vehicle they're bringing home to Canada in order to make sure it's not flood-damaged or has a 'washed' or incorrect title," said Mark Francis, ICBC's manager of provincial vehicle registration and  licensing.

Titles are effectively 'washed' when a vehicle that sustained serious damage in a crash and is coded as 'rebuilt' or 'non-repairable' in one state, changes hands and turns up in a neighbouring state with a 'clear' status.

More than half of the cars, trucks and trailers imported from the U.S. into B.C. last year were brought in by dealers intent on re-selling them.

"The bottom line is, do your homework, gather all the required forms and make sure you know what you're buying," said Francis.

Here are ICBC's top five tips for buying and importing a vehicle from the U.S.:

1. Look at the guest list: Before you even think about making the purchase, make sure the vehicle you plan to import is admissible to Canada. For a start, check out Transport Canada's List of Vehicles Admissible from the United States. Don't forget that vehicles brought into Canada must be modified, inspected and certified to meet our safety standards.
2. Take a history lesson: A vehicle history report can tell you a lot about a car you're thinking of buying, like whether it's been in a major crash, has any liens on it or is flood damaged (ICBC will not register vehicles with a status of 'non-repairable' or 'flood-damaged'). CarProof™, Autocheck® and CARFAX are just some of the online services that are available, for a fee.
3. Get your paperwork together: A complete collection of documents and forms is required: title documents, registration, sales receipts, and a statement of compliance label. You should also ask for any recall letters the manufacturer has sent out on your vehicle model. And plan ahead when it comes to getting your U.S.-based vehicle into Canada; ICBC sells insurance policies ranging from 1 to 31 days that can accompany a U.S. permit during that transition time. Once you're on this side of the border, Canada Border Services Agency will provide the Vehicle Import Form and facilitate payment of the non-refundable Registrar of Imported Vehicles (RIV) fee.
4. Call in the inspector: After payment and the recall clearance documentation have been received, RIV will forward you an inspection form by e-mail, fax or mail. Make sure you keep detailed receipts for parts and labour for the modifications to present at the time of the inspection, along with Form 1 and Form 2. Canadian Tire stores carry out inspections on behalf of the Registrar of Imported Vehicles/Transport Canada. The vehicle must also pass a provincial inspection at a designated inspection facility.
5. The final step: At this point you can register, licence and insure the vehicle at any Autoplan broker. Remember to bring your Vehicle Import Form with two stamps, the Canadian Border Service Agency document, original Certificate of Title or Certificate of Origin and the original bill of sale.

If you're looking to buy a vehicle from outside Canada, our website has good information to get you started. Go to www.icbc.com, then click on Vehicle Registration, then go to Buying, selling and importing a vehicle. Transport Canada's website – www.tc.gc.ca – also has some great resources, including information on kit cars and vehicles over 15 years old, where RIV requirements are not applicable. For the best central resource for all the information on admissibility, modifications, US customs requirements and recall notifications, go to the RIV website - www.riv.ca.

Media Contact:
Adam Grossman
604-982-1332

ICBC reports second quarter results

Road safety investments and customers' safe driving help reduce claims

ICBC's financial performance is allowing the corporation to reduce rates, increase its commitment to road safety funding, and invest in much-needed customer service systems upgrades.

Reported net income at ICBC for the first six months of 2009 is $277 million, up from $255 million for the same period in 2008. The increase is the result of continued encouraging trends on claims, while ICBC is also managing its overall costs well. Claims and related costs at ICBC dropped by $50 million to $1.46 billion for the first half of 2009 compared to $1.51 billion for the first six months of 2008.

ICBC's approximate $40 million yearly commitment in road safety and auto crime prevention has contributed to the decline in claims for the corporation – a major factor in its strong second quarter performance. ICBC is also increasing its investment in enhanced traffic enforcement, which supports dedicated police enforcement of traffic safety across British Columbia.

The increased funding for enhanced enforcement – which has allowed police to successfully carry out their targeted enforcement – combined with significant investments in awareness campaigns such as CounterAttack, have contributed to a reduction in the number of crashes – particularly those involving injury and death.

"We are continuing to see a decline in the number and total cost of injury claims, and for that we thank our customers for driving safely," said Jon Schubert, ICBC's President and CEO. "We continue to manage our business well during these tough times which has put us in a healthy financial position to keep basic rates unchanged overall and to reduce optional rates for 2009 by an average of three percent, effective October 1, 2009."

Good weather, improved claims-handling procedures and a moderation in the growth of the number of vehicles on the road have also played a role in keeping claims costs down.

Premiums written at ICBC picked up during the months of May and June after a slow start to the year. ICBC's premiums were $1.85 billion for the first six months of the year, down slightly from $1.86 billion for the same period in 2008.

While reducing rates, ICBC will also be investing in much-needed customer service systems upgrades. This investment will focus on further improving the customer’s experience and streamlining ICBC’s technology systems to increase efficiency.

ICBC's investment income for the first half of 2009 was $253 million compared to $269 million for the same period last year, and is reflective of a well-managed and diversified portfolio. Despite a tough economic environment, ICBC is continuing to manage its costs well. Operating costs remain low and consistent with last year. Similar to previous years, approximately just four cents of every premium dollar will be used for administrative costs to operate its insurance business in 2009.

Media Contact:
Adam Grossman
604-982-1332

Fraudsters ordered to pay ICBC

Corporation awarded more than $600,000 in insurance fraud lawsuit

The BC Supreme Court has ruled in favour of ICBC in a lawsuit involving an insurance fraud ring and has awarded the corporation damages and interest in amounts that will total more than $600,000.

Following a lengthy trial the court ruled on that a variety of frauds and vehicle conversions were committed on ICBC when several vehicles were falsely reported stolen by the defendants, and other vehicles were dismantled or disguised with phony vehicle identification numbers in order to resell them after they were stolen. The events involved in the schemes took place over several years prior to November 2004.

Investigators began to discover the stolen vehicle frauds in 2002 when some of the people involved with those vehicles were involved together in a staged car crash and later made insurance claims to try to defraud ICBC through that method.  

ICBC faced many claims and lawsuits for insurance coverage and paid out amounts ranging from $6,000 to $59,000 per vehicle. Eventually the frauds and thefts were exposed, and ICBC turned the table with a lawsuit to recover its losses plus punitive damages and costs.

The court decision details initial damage awards in the amount of $519,615.40. The decision also provides that the total award will increase following further calculations and assessments, as ICBC is entitled to interest on the award as well as a portion of its $222,677.74 in investigative costs.

Jozsef Suska, described in the decision as the "ringleader" and "an admitted and unmitigated liar" will have a judgment against him in excess of $300,000. There also is a substantial award against Laszlo Balogh and smaller awards against Andrea Muzsik, Aruna Mangal, November Hayward, Lorne Peebles, Zoltan Nadasi and Gaspar Balog. 

"We are dedicated to protecting our customers and their premium dollars against fraud," said Craig Horton, senior vice president of claims. "We will not sit back and simply pass the cost of fraud on to our customers."

ICBC invested approximately $8 million in fraud prevention in 2008, more than most property and casualty insurance companies in Canada. ICBC estimates that fraud costs each of ICBC's 3.1 million customers in the range of $100 to $150 per year.

The public can help combat fraud and help keep their auto insurance premiums low and stable. Anyone with information regarding a suspicious, exaggerated or fraudulent claim is encouraged to call ICBC's fraud tips line at 604-661-6844 or 1-800-661-6844, toll free from anywhere in the province.  Callers can remain anonymous.

The reasons for judgment can be found at http://www.courts.gov.bc.ca/jdb-txt/SC/09/10/2009BCSC1051.htm

Media Contact:
Mark Jan Vrem
604-982-2476
Adam Grossman
604-982-1332

ICBC legal action protects name and customers

ICBC has launched legal proceedings against a Vancouver company which is using ICBC's official marks to market its websites and sell a manual to consumers without ICBC's authorization.

"We are taking the action to protect our name and to protect our customers from being misled into buying goods or services that they believe are approved, authorized, or endorsed by ICBC when in fact they are not," said Jeff Schulz, ICBC's vice president of strategic marketing.  

ICBC has an obligation to protect its official marks from unauthorized use, both to protect customers from confusion, and to protect its valuable and recognizable brand. These official marks are protected by the federal Trade-marks Act, and are very important to ICBC.

The Statement of Claim seeks an order that Stainton Ventures Ltd. of Vancouver stop using ICBC's official marks to market its websites and in connection with the sale of a manual known as the "ICBC Claim Guide" without authorization from ICBC.

While ICBC does not object to the text of the websites or the manual, it is concerned about the unauthorized use of its official marks and brand for commercial purposes. ICBC was compelled to bring court proceedings because the company refused to stop using ICBC's official marks and brand in its business.

"Apart from the need to protect our marks and our brand from being adopted by others for their own businesses, we feel there is a real risk of customer confusion – thinking, at least initially, that they are dealing with a company that is endorsed by ICBC when that is not the case," said Schulz.

Owners of several other websites have adopted and used ICBC's official marks for commercial and other purposes. ICBC considers each situation on a case-by-case basis, but always with the objective of doing what is required to protect its brand and the public.

Media Contact:
Mark Jan Vrem
604-982-2476

B.C. drivers come clean

Ipsos Reid survey uncovers "dirty driving" distractions

The average B.C. driver spends almost 11 hours a week in the car - so naturally driving smart should be a priority because it can affect the price you pay for insurance, how much gas you use and your impact on the environment. However, a recent Ipsos Reid survey for ICBC shows that almost all drivers (96%) admit to wasting gas even though they say fuel efficiency is important.

The majority of drivers either let their car idle for more than 10 seconds or drive at speeds of 10 to 20 km/h over the speed limit. However, most say that fuel efficiency will be an important factor when they purchase their next vehicle.

"Driving smart " changing how we drive to save money on gas and reduce our vehicle carbon emissions has the added benefit of being safer," said Jeff Schulz, ICBC's vice president of strategic marketing. "We're asking motorists to examine the impact of their driving habits and learn how to avoid being 'dirty drivers'."

The survey also found that nearly all those who responded (93%) admitted to participating in some sort of distracting behaviour while driving. The answers provided by the 'dirty drivers' were surprisingly candid and included:

• eating and/or drinking at the wheel (73%)
• singing in the car (69%)
• talking on a cell phone (66%)
• picking your nose (30%)
• smoking (24%)
• fighting with passengers (20%)
• texting (20%) or reading (16%)
• entertaining children (14%)
• more than one of the above at the same time (17%)

Other distractions included flirting with other drivers, applying makeup or checking in the rear-view mirror to admire your own reflection and 'making out' while driving.  

The survey showed that older drivers (66 and above) are less likely to engage in distracting behaviours, while drivers 18 - 25 are the most likely to multi-task behind the wheel.  

For the full survey results, drive smart tips and to enter for a chance to win a 2009 smart fortwo coupe, visit www.drivesmartsavegreen.com. The website also offers a fuel costs and emissions calculator to assist drivers in understanding the financial and environmental impact of their driving habits. In addition, visitors will find helpful resources on how to save money on gas, reduce carbon emissions and drive safely.

Media Contact:
Mark Jan Vrem
604-982-2476