August 2006 News Releases

Back to school and long weekend traffic: two reasons to slow down — August 30
BC Motorists Drive-Up Registration Numbers — August 30
ICBC uncovers alleged Total Theft Ring — August 3
Chill, Focus and Relax on roads this BC Day long weekend — August 2
ICBC reports six-month net income $50 million lower than 2005 — August 1

Back to school and long weekend traffic: two reasons to slow down — August 30

ICBC is committed to road safety

The Labour Day long weekend marks the end of summer vacation for many, as a new school year begins next week. ICBC is reminding motorists that over the next few days the roadways will be busy with long weekend traffic and students heading back to school - please slow down. Last year over the Labour Day long weekend there were 1,600 crashes on B.C. roads, resulting in over 550 injuries and 9 fatalities.

"Tragically, last year the Labour Day long weekend was one of the most deadly," said John Les, Minister of Public Safety and Solicitor General. "Government has undertaken a number of initiatives recently to increase road safety, but motorists also need to do their part by driving safely," said Les.

ICBC is concerned about the rising cost of claims, particularly the rising cost of payouts to customers with injuries. ICBC invests in road safety programs to reduce crashes. Fewer crashes save lives, reduce injuries, and help to keep insurance rates low and stable by reducing claims costs.

"Pedestrian safety is a priority for ICBC in September," said Laurie Baker, ICBC manager of Road Safety. "The first few days of school are a very exciting time for young children. They may be pre-occupied and forget the rules of the road. Drivers need to use extra caution, in particular around schools," said Baker.

Starting Tuesday September 5, police will be monitoring speeds in school zones. When school is in session, a 30-km/h school zone speed limit is in effect from 8 a.m. to 5 p.m., unless otherwise posted. Drivers are also reminded vehicles must stop for school buses when their lights are flashing.

Tips for pedestrians:

For more information on road safety, visit www.icbc.com.

For more information contact:
Alyson Gourley-Cramer - Northern BC
(250) 561-5006

Ryan Detwiller - Southern Interior
(250) 979-4612

Alex Lee - Lower Mainland
(604) 507-3619

Tamara McLean - Vancouver Island
(250) 414-7883

Paul McNicholls - Vancouver Island (Duncan/North Cowichan, Ladysmith)
(250) 709-3402

Char Roth - Vancouver Island (Greater Victoria, Sooke, Saltspring Island, Shawnigan Lake)
(250) 480-5602

Ron Fisher - Vancouver Island (Campbell River, Port Hardy, Gold River, Port McNeil)
(250) 830-2952

Kate Best
(604)982-2480

BC Motorists Drive-Up Registration Numbers — August 30

VANCOUVER - The BC Transplant Society (BCTS) is celebrating the success of a partnership with ICBC that has significantly increased the number of British Columbians registered as organ donors.

Starting in July of last year, organ donor registration forms have been included in new driver's licenses, and as a result more than 62,000 drivers have returned a registration form. "This program really makes sense, because many people still associate registering as an organ donor with their driver's license," says Bill Barrable, Provincial Executive Director of the BC Transplant Society.

Thanks to the tens of thousands of British Columbians who have registered their decision on BC's Organ Donor Registry, the BC Transplant Society has already surpassed its annual goal to register 35,000 new registrants on the Registry. To date, more than 39,000 people have registered in 2006.

"It's been a very successful year," says Barrable. "It is very encouraging to see the numbers of British Columbians that have registered their decision. There is nothing better than saving someone's life by passing on your organs."

While more than 577,000 British Columbians have registered on the Organ Donor Registry, the Society's overall goal is to ensure that every British Columbian is registered.

BC's Organ Donor Registry was introduced in 1997and is the only one of its kind in Canada. It replaced all previous methods of indicating one's intent to become an organ donor, including the decal that was once placed on a driver's license or CareCard. The Registry gives British Columbians four different choices, including the option not to be a donor. It is important to register regardless of one's decision.

What are you waiting for? Register your decision today about organ donation and ensure that your decision is recorded. To register, or for more information, visit www.transplant.bc.ca or call 1.800.663.6189.

Organ Donor Registry Facts

Number of British Columbians registered 577,407

Percentage of females registered 59%
Percentage of males registered 41%

Percentage of population registered (select communities)

British Columbia 14%
Abbotsford 12%
Courtenay 37%
Cranbrook 24%
Dawson Creek 19%
Quesnel 37%
Surrey 11%
Vancouver (city) 12%

With its 20th anniversary, the BC Transplant Society is celebrating 20 years of innovation. Over the past two decades, more than 3,500 British Columbians have received a life-saving organ transplant. The BC Transplant Society is an agency of the Provincial Health Services Authority.

Contact information:
Kate Best
ICBC
604-982-2480

Ken Donohue
BC Transplant Society
604-877-2240

ICBC uncovers alleged Total Theft Ring — August 3

Lawsuit filed against 22 defendants accused of fraud and conspiracy

On August 3, 2006, ICBC filed a lawsuit in B.C. Supreme Court against 22 defendants who were allegedly involved in fraudulent insurance claims involving motor vehicle thefts. According to the Statement of Claim, between June 1, 2001 and November 13, 2004, the 22 defendants were directly or indirectly involved in 25 vehicle theft claims. It is alleged that several of the defendants voluntarily gave up their vehicles, and then reported them stolen to ICBC. ICBC alleges that the vehicles were dismantled, rebuilt and/or disguised with false Vehicle Identification Numbers (VINs) in order to resell them. ICBC is seeking to recover $553,495.09 for claims costs already paid out, as well as investigative and legal costs and punitive damages.

"ICBC has a zero tolerance policy when it comes to fraud," said Mark Withenshaw, ICBC vice president of Loss Management. "We will not sit back and simply pass the cost of fraud onto our customers."

The amounts ICBC paid out for individual theft claims ranged from $6,000 to $59,000. The vehicles involved in the alleged scheme vary from early and late model cars, to late model trucks and SUVs. The alleged fraudsters reside primarily in Surrey and Langley, but some as far away as Dawson City, Yukon.

The majority of the fraudulent claims described in the Statement of Claim are alleged to involve: Jozsef Suska of Dawson City, Yukon; Laszlo Balogh of Coquitlam, B.C.; Gyula Vaczi of New Westminster, B.C.; Laszlo Majorani of Surrey, B.C.; Michele Palma of Dawson City, Yukon; and/ or Andras Takacs of Surrey, B.C.

ICBC exposed the alleged frauds while investigating a suspected staged car crash that took place in October 2002. It is alleged in this lawsuit that not only are the insurance claims resulting from the suspected staged crash fraudulent, but also that the claimants involved in the suspected staged crash were also involved in a number of the fraudulent stolen vehicle claims.

Many of the allegedly stolen vehicles and vehicle parts are said to have been located on properties in Surrey in February 2005 by members of the Integrated Municipal Provincial Auto Crime Team (IMPACT).

In addition to the identification of the stolen property, ICBC's statement of claim links the defendants to the alleged stolen vehicle scheme based on similarities between the stolen vehicle claims and relationships between the various defendants. The circumstances of each of the 25 related incidents are set out in greater detail in the court documents filed by ICBC. The allegations in the Statement of Claim have not been proven in court.

"ICBC invests more in fraud prevention and investigation than most property and casualty insurance companies in Canada. We combat fraud to deter others and to recover fraudulent payments," said Withenshaw.

B.C. motorists saved more than $73 million in 2005 thanks to ICBC anti-fraud programs. Savings are based on the estimated value of fraudulent claims which were denied, money recovered and savings generated through fraud prevention. In 2005, ICBC's anti-fraud program resulted in 175 criminal charges against 94 people. ICBC's Fraud Prevention and Investigation department conducted over 3300 investigations during the year.

Anyone with information on a suspicious, exaggerated or fraudulent claim is encouraged to phone 604-661-6844 or 1-800-661-6844.

Photos of vehicles involved in the alleged fraudulent claims and the Statements of Claim are available through ICBC Media Relations.

Statement of Claim Vancouver Registry No. S-064987

Defendants:

Jozsef Suska, Dawson City (Yukon); Laszlo Balogh, Coquitlam (B.C.); Leslie Sherart, Langley (B.C.); Gyula Vaczi, New Westminster (B.C.); Tibor Putics, New Westminster (B.C.); Andras Takacs, Surrey (B.C.); Andy Vadasz, Langley (B.C.); Eric Nicholl, Maple Ridge (B.C.); Sandor Toth, Langley (B.C.); Zolton Nadasdi, Likely (B.C.); Andrea Muzsik, Surrey (B.C.); Adam Sherart, Surrey (B.C.); November Hayward, Langley (B.C.); Aruna Mangal, Surrey (B.C.); Gaspar Balog, North Vancouver (B.C.); Michele Palma, Dawson City (Yukon); Laszlo Majorani, Surrey (B.C.); Lajos Fodor, Burnaby (B.C.): Robert Williams, Surrey (B.C.); Laszlo Torozok, Langley (B.C.); Douglas Puddifant, Burnaby (B.C); Lorne Peebles, Delta (B.C.); Isabelle Poirier, Surrey (B.C.)

For more information contact:
Doug Henderson 604-982-1332

Chill, Focus and Relax on roads this BC Day long weekend — August 2

ICBC provides tips to avoid being involved in a crash

Don't ruin your long weekend by being involved in a crash. ICBC is reminding motorists to Chill, Focus and Relax this BC Day long weekend.

Last BC Day long weekend, there were more than 1,700 crashes that resulted in approximately 550 injuries and 2 fatalities. Over the past five years, 30 people have died in car crashes on the BC Day long weekend.

"Summer time and long weekends in particular are a busy time on BC roads. Please slow down to ensure you and your family enjoy a safe BC Day," said Solicitor General John Les.

ICBC is committed to reducing the number of crashes to help save lives, and to keeping insurance rates low and stable. While the cost of claims is rising, motorists can do their part by driving safely.

This summer ICBC's education and awareness campaign focuses on speeding and aggressive drivers. Motorists are reminded to Relax - keep a safe distance between your vehicle and the one in front of you. Focus - avoid distractions and pay close attention, especially at intersections. And Chill - slow down and take your time. Better to arrive late than not at all.

Police are also targeting speeding and aggressive drivers. They are on the look out for unsafe behaviours such as sudden lane changes, tailgating and running red lights.

"The most effective way to reduce crashes is through a combination of education and enforcement. Over the long weekend and throughout the summer, expect to see both thanks to police and ICBC," said Les.

Additional tips for long weekend travellers:

If you are involved in a crash and need to file a claim, ICBC's Dial-A-Claim service is open 24 hours a day, including holidays, at 604-520-8222 or 1-800-910-4222. You can also file your claim online at www.icbc.com.

For more information contact:
Kate Best 604-982-2480

LOCAL CONTACTS:
Alyson Gourley-Cramer - Northern BC
(250) 561-5006
Ryan Detwiller - Southern Interior
(250) 979-4612
Eric Green - Fraser Valley
604-240-8108
Karen Klein - Greater Vancouver
604-786-6483
Paul McNicholls - Vancouver Island (Duncan/North Cowichan, Ladysmith)
(250) 709-3402
Char Roth - Vancouver Island (Greater Victoria, Sooke, Saltspring Island, Shawnigan Lake)
(250) 480-5602
Pat Ahern - Vancouver Island (Nanaimo, Parksville, Qualicum, Port Alberni, Ucluelet, Tofino)
(250) 390-5503
Ash Megalli - Vancouver Island (Courtenay, Comox, Powell River)
(250) 703-2771
Ron Fisher - Vancouver Island (Campbell River, Port Hardy, Gold River, Port McNeil)
(250) 830-2952

ICBC reports six-month net income $50 million lower than 2005 — August 1

ICBC has reported net income of $110 million for the first half of 2006, which is lower than the net income of $160 million reported for the same period in 2005.

Net claims costs for the first six months of 2006 increased by approximately 10 per cent to $1.33 billion, from $1.21 billion. The average payout to customers with claims is increasing, particularly the cost of injury claims.

"For the first half of this year, particularly during the wet driving conditions in the first few months of the year, we've seen an increase in the number of claims and an even larger increase in the average cost per claim," said Paul Taylor, ICBC's president and CEO. "As well, prior year claims costs have continued to increase, resulting in a need for higher reserves. Claims cost increases have been partially offset by increases in premium revenue and continued strong investment returns."

Insurance premiums earned for the six months ended June 30, 2006 increased slightly to $1.57 billion from $1.54 billion for the same period in 2005. Premiums earned reflect the 6.5 per cent increase in rates for basic coverage that was effective March 15, 2006 and approved by the BCUC in July. There was also an increase in the number of basic policies sold and higher sales of optional coverages in the first half of 2006. The rate reduction for optional insurance of $100 million annually that was implemented in mid-2005 continues to partially offset higher premium revenues.

"ICBC is concerned with the continued increase in claims costs and will aggressively seek new ways to deal with rising cost pressures but we can't do it alone," said Taylor. "We need all BC drivers to take responsibility for their driving behaviour and do their part to prevent crashes. It's a simple formula - fewer crashes and injuries will result in a decrease in costs, which translates into low and stable rates for customers."

Operating expenses for the first six months of 2006 were $243 million, which has decreased from $246 million reported for the first six months of 2005. ICBC continues to keep operating expenses low while increasing investments in road safety, fraud and auto crime prevention. Staffing levels at ICBC's 24-hour call centres have also been increased to improve customer service levels.

ICBC's investment income for the first half of 2006 increased to $269 million, from $255 million for the same period last year. Income produced by ICBC's investments lowered the average premium by approximately $200 in 2005.

Statement of Operations

For more information contact:
Doug McClelland (604) 982-2476

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