ICBC recognizes 22 collision repair shops for outstanding customer service — March 27

In 2007, 22 of ICBC's accredited express repair shops won AutocheX Premier Achiever Awards for excellence in customer satisfaction. The winners were recognized, out of 9,000 entries across North America, for achieving customer satisfaction ratings of 98.8 per cent or higher.

AutocheX and ICBC work together to measure customer satisfaction levels for the 379 accredited express repair shops that participate in ICBC's c.a.r. shop VALET program. ICBC's c.a.r. shop VALET facilities provide safe, quality repairs that are guaranteed for as long as the customer owns the vehicle.

"ICBC is dedicated to providing its customers with a hassle-free claims experience. Excellent service is one of our key, corporate objectives," said ICBC senior vice-president of Claims, Craig Horton. "We're extremely proud that 22 of our key business partners have demonstrated the utmost in customer service."

Over 9,000 shops across North America use AutocheX to measure customer satisfaction in collision repairs. The AutocheX award winners represent the top five per cent of shops measured in 2007.

To be eligible for the awards, ICBC and the c.a.r. shop VALET facilities are required to track customer satisfaction results on a monthly basis to monitor and improve performance. Approximately 70,000 customers in BC are surveyed by phone annually, as a part of this customer service tracking.

"These 22 repair shops have achieved success by making the customer priority number one," said Dale Finch, executive director for the Automotive Retailers Association. "All of these shops' employees should be applauded for having some of the highest customer satisfaction scores in North America."

One of the strongest indicators of customer loyalty is customer recommendations to friends and family. ICBC and AutocheX include this as one of the measures in the customer satisfaction index (CSI). Other key factors used to track customer satisfaction are the shops ability to keep the customer informed, provide on-time deliveries and quality repairs.

The 2007 winners located throughout BC are:

• McDermott's Body Shop Ltd., Vancouver +
• T.C. Valley Collision Ltd., Courtenay *
• Ron's Collision, Cranbrook *
• A-1 Auto Body Ltd., Langley *
• Meadowridge Collision Ltd., Maple Ridge *
• Proline Collision Ltd., North Vancouver *
• Centerline Collision Centre, Quesnel *
• Frank's Auto Body Repair, Vernon *
• Autohouse Collision & Restoration, Abbotsford
• Van-Burn Collision Repairs Ltd., Burnaby
• Eagle Automotive Center, Burns Lake
• Willy's Collision Ltd., Courtenay
• Neno's Paint & Body Ltd., Cranbrook
• North Star Motors Ltd., Cranbrook
• Tsawwassen Collision Ltd., Delta
• Enderby Auto Body Ltd., Enderby
• Modern Bradley Collision Ltd., Langley
• On Line Collision Ltd., Langley
• Signal Collision Ltd., Marysville
• Sidney Hi-Tech Collision Inc., Sidney
• P.J. Collision Ltd., Vanderhoof
• Parker's Auto Body & Paint Ltd., Victoria

Note - (+ 3x winner, * 2x winner)

MEDIA CONTACTS:
Kate Best, 604-982-2781
Tamara McLean (Vancouver Island), 250-414-7883
Cindy Kralj (Greater Vancouver), 604-296-1534
Ryan Detwiller (Southern Interior), 250-979-4612
Alyson Gourley-Cramer (North Central), 250-561-5006

ICBC is encouraging drivers to plan ahead and drive safely — March 20

Tips to stay safe and enjoy the Easter long weekend

ICBC is encouraging all drivers to plan ahead and drive safely this Easter long weekend. To help ensure all British Columbians enjoy a safe weekend, police will be out in full force ticketing drivers who engage in high-risk driving behaviours.

"We expect the roads to be busy this weekend but we want everyone to be safe," said Solicitor General John Les. "The message we're sending to dangerous drivers is that police will be looking out for you to get you off the road."

Over the past five years (2003 - 2007), there have been an average of 2,000 crashes, 650 injuries and five fatalities throughout B.C. over the four-day Easter long weekend.

"Bad driving habits affect everyone's insurance rates. ICBC is keeping insurance rates low and stable, while motorists do their part by driving safely," said Nicolas Jimenez, ICBC's director of Road Safety.

When you are out on the roads this weekend, remember the following safety driving tips:

• Plan ahead and be realistic about travel times. Allow extra time for possible delays that may occur due to increased traffic volume over the long weekend.
• If this weekend is your first road trip of the year, check the condition of your vehicle to ensure it is equipped for a longer drive. Inspect vehicle tires, including the spare, making sure they are in good condition and properly inflated.
• Whether travelling a long distance or a short trip, always slow down and maintain a safe travelling distance between vehicles.
• Drivers and passengers need to remember to wear their seatbelts at all times.
• And set an example to your children and other drivers by practicing courtesy on the road.

For more road safety tips, visit www.icbc.com.

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. In the Lower Mainland, call 604-520-8222, and for the rest of B.C., call 1-800-910-4222, or you can file your claim online at www.icbc.com.

MEDIA CONTACTS:
Doug McClelland, 604-982-2476
Doug Henderson: 604-982-1332

ICBC takes action as a result of investigation into research and training facility — March 19

ICBC's CEO Paul Taylor today announced the company is taking immediate action to address findings from an investigation that confirmed 98 vehicles from its Burnaby-based research and training facility have been sold without the proper designation and disclosure to buyers.

The investigation was announced last month in response to internal concerns that some vehicles repaired at the facility, which was established in 1988, were sold with a repair history that was incorrectly designated and disclosed to buyers. As a result, these customers had insufficient information when purchasing vehicles.

The internal investigation revealed that ICBC lacked clear and specific policies and procedures to govern the designation, repair and sale of vehicles from its research and training facility from Jan. 1, 1998 to present. As a result, 98 vehicles repaired at the facility were sold with incorrect designations and without adequate disclosure.

"I want to express my sincere apologies to all customers who were inconvenienced and purchased vehicles with incorrect designations", said Taylor. "This is a serious matter and we have taken immediate steps to correct the situation, including making things right with customers who purchased these vehicles."

ICBC has taken the following steps with customers who purchased vehicles without the proper vehicle repair history designation and disclosure:

• ICBC has contacted all but two customers who have purchased these vehicles, and is either buying back these vehicles or having them inspected and re-designated for customers who choose to keep their vehicles.
• All vehicles being bought back will not be permitted to be registered in the future and are being designated as dismantle only and being sold off for parts. Vehicles that sustained water damage will be crushed.

The investigation also revealed that:

• Several employees also purchased rebuilt vehicles at industry auction where the vehicle history was incorrectly designated and disclosed. While the sale of vehicles to employees is a standard practice at some companies, ICBC has no policies in place to govern this process.
• There is some evidence that the facility and staff time were used for non-business purposes such as repairing employee vehicles.

ICBC has also taken immediate action to amend company policy to stop the inappropriate designation of vehicles, and improve customer access to vehicle history information in the future. Actions include:

• Effective immediately, the research and training facility has ceased repairing or designating vehicles for sale. Work at the facility will be strictly limited to research for training and education purposes.
• Policies and procedures will be upgraded to ensure the proper designation and disclosure of vehicle history meets or exceeds current North American standards.
• ICBC employees will not be permitted to purchase any salvage vehicles, either directly or indirectly.
• Repair of personal vehicles will no longer be permitted under any circumstance. Employees face serious consequences for non-compliance, up to and including dismissal.
• The Vehicle Identification Numbers of all written-off vehicles will be available shortly on icbc.com so that individuals can confirm if a vehicle has been written-off as a loss by ICBC.
• All current and future staff will be trained on the upgraded policies and procedures, and employees will face serious consequences for non-compliance, up to and including dismissal.

For legal and privacy reasons, ICBC is unable to comment on personnel matters related to the investigation other than to say that changes have been implemented in response to the findings.

ICBC has also launched a separate independent investigation, which is being conducted by PricewaterhouseCoopers, into the operations of this facility. The findings of that investigation will be made public and if additional issues are identified, further action will be taken.

Background information is available

MEDIA CONTACT:
Doug Henderson: 604-982-1332

Background — March 19

ICBC's standard process for disposal of damaged vehicles

• In the process of administering approximately 900,000 claims per year, ICBC acquires and disposes of about 42,000 vehicles that are written off.
• A write-off occurs when the vehicle is not repairable, when the cost of repairing the vehicle is higher than the replacement value, or when the vehicle was stolen and not recovered until after the claim is paid out.
• These vehicles are designated at the claim centre as 'DPO' (dismantle, parts only) or 'Salvage', and sold to salvage dealers and wreckers either for parts or rebuilding.
• Repaired 'Salvage' vehicles require inspection at a designated inspection facility before they can be driven on the road.
• After passing an inspection, the designated inspection facility would document the vehicle as a 'Rebuild'.
• 'Rebuild' designation indicates there was significant previous damage and has implications for the value of the vehicle and typically negates warranty provisions.

Material Damage Research & Training (MDR&T)

• In operation since 1988, the facility's primary purpose was to conduct repair research to reduce costs and inform industry training.
• On average, the facility would repair 30 to 40 vehicles per year.
• Vehicles that were used by MDR&T were acquired either from the salvage department or claims centres.
• Once the vehicle was no longer required, it was sold through a wholesale auction process.
• In the past, MDR&T has achieved key successes through its research and training activities, such as improving designs for vehicle head restraints, children's car seats and auto security systems.

ICBC charges for high-risk drivers to be phased in
— March 18

Additional charge for multiple drivers of one vehicle is postponed

ICBC is responding to customer feedback by taking a phased approach to changes to the way rates are set for basic insurance.

In the spring of 2007 ICBC announced plans to charge high-risk drivers more. Two initiatives - the Driver Risk Premium and a $25 premium when other higher-risk drivers use a vehicle - were subsequently approved by the BC Utilities Commission, which regulates basic, compulsory insurance.

However due to input received from customers, ICBC will now take a phased approach to these rate design changes. It is clear from the feedback that ICBC needs to take more time to explain the factors which indicate higher risk for some customers, including the crash risk linked to multiple traffic infractions and the additional risk when several drivers use one vehicle.

ICBC remains committed to its long-term plan to move towards driver-based pricing. Drivers who are higher risk - including those who cause crashes and get traffic violations - will see their insurance costs increase. Most drivers will benefit as the additional premiums paid by high-risk drivers will help offset basic insurance rates for safer drivers.

The Driver Risk Premium is now being implemented in two phases. The first phase will see drivers with Criminal Code convictions (e.g. impaired driving) and one or more tickets for excessive speeding (more than 40 km over the speed limit), and drivers with two or more roadside suspensions pay more starting in 2009 based on their record starting January 1, 2008. Once fully phased in, the driver record scan will be for the past three years.

The second phase will expand to include three or more motor vehicle-related offences (over a three-year period) on a driver's record from January 2009 forward with additional charges going into effect in 2010.

The additional charge for other household members using the vehicle who have less experience and or a worse driving record will not be implemented on May 1, 2008 as previously scheduled while ICBC examines the best approach for moving forward.

The goal is for customers to understand driver-based pricing and to make individual choices that lead to safer driving and lower premiums. ICBC will use the additional time to communicate more about the move towards driver-based pricing and the role customers can play in keeping rates low and stable.

Further details on the Driver Risk Premium program.

MEDIA CONTACT:
Doug McClelland: 604-982-2476

Lower ICBC rates in 2008 — March 12

Strong financial management helps keep rates low and stable

ICBC has reported strong financial results and high customer satisfaction scores for 2007.

"Our early analysis indicates that there is no need for additional rate changes for basic insurance this year", said Paul Taylor, ICBC's president and CEO. "Furthermore, there is room for a 3 per cent reduction in rates for optional insurance, partly due to declining claims costs for vehicle theft."

Net income is reported at $642 million, including investment income of $612 million. The strong increase in investment income is due in part to the sale of the Central City development in Surrey.

"ICBC's financial performance in 2007 has allowed the company to build capital up to the required levels, ahead of schedule," said Taylor. "This capital serves as a contingency fund to help keep rates low and stable by absorbing unexpected spikes in claims costs or unanticipated significant declines in investment income."

The company also continues to invest in road safety programs to reduce the number and severity of crashes, and to help lower claims costs. Examples include support for enhanced traffic enforcement, road improvements at high-crash locations, and public awareness campaigns.

Continued strong financial management helps keep rates low and stable

• Investment income in 2007 was $612 million, an increase from $512 million in 2006.
• The turnaround and sale of the Central City development in Surrey contributed $135 million to the year's investment income.
• ICBC continues to be an industry leader for low operating costs.

Customer satisfaction targets exceeded

• In 2007, all customer satisfaction measures met or exceeded the year's targets.
• High levels of customer satisfaction were confirmed by an independent third-party organization.
• Levels of customer satisfaction for:
  • Insurance services 93%
  • Claims services 84%
  • Driver licensing services 91 %

(Surveys conducted by NRG Research Group; sample sizes of 1,000, 7,500, and 4,000 respectively.)

Rate stability continues in 2008

• For about half of customers who chose ICBC for their basic and optional insurance, rates in 2008 will be lower or roughly the same as they were in 2004.
• The average premium for optional coverage decreased 3.8 per cent in 2007, and will decrease by an additional 3.0 per cent in 2008.
• Premiums for basic coverage increased by 3.3 per cent in 2007, mainly due to increases in the average cost of payouts for customers with injury claims. Higher costs for injury claims predominantly affects basic insurance because about three-quarters of all payouts for injuries are under basic coverage.

Average Rate Changes for all vehicles
Basic Insurance
2008*	2007	2006	2005	2004
0.0%	3.3%	6.5%	0.0%	0.4%
Optional Insurance
2008**	2007	2006	2005	2004
-3.0%	-3.8%	0.0%	-7.6%	0.4%
Combined
2008	2007	2006	2005	2004
-1.3%	0.2%	3.7%	-3.4%	0.4%

* 2008 rate plan for basic insurance
** 2008 optional rate reduction effective July 1, 2008

MEDIA CONTACTS:
Doug McClelland: 604-982-2476

Vancouver resident attempts to bribe an ICBC driver examiner — March 3

ICBC has a zero tolerance for fraud

Hiu Qin Zhang of Vancouver is facing the consequences of attempting to bribe an ICBC driver examiner. In the spring of 2007, Zhang was charged with offering to bribe a public official, an offence under the Criminal Code of Canada, Section 121(1). She recently attended Vancouver Provincial Court and pleaded guilty to the offence. She was sentenced to nine months' conditional house arrest

"ICBC is committed to protecting the integrity of BC's driver licensing system. We take all types of fraud very seriously with our zero tolerance approach,"said Steve Tripp, manager of ICBC's Special Investigation Unit.

Zhang attended ICBC's Point Grey Driver Service Centre on January 15, 2007 to take her Class 7 road test. Prior to leaving the parking lot for the driving portion of the test, Zhang placed two $100 bills on the driver examiner's seat. The examiner promptly terminated the test and directed Zhang back into the Driver Service Centre.

On March 5, 2007, ICBC's Special Investigation Unit took a voluntary statement from Zhang. According to her statement, Zhang had offered the driver examiner a 'tip' to help ensure she passed the exam.

"ICBC works to ensure the right drivers are on BC's roads with safe and secure drivers' licences. Our staff are well-trained professionals who ensure only those qualified to drive are granted licences. We want to keep everyone on our roads safe," said Mark Withenshaw, ICBC vice-president of Driver Services.

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.

Media Contact:
Doug Henderson
604-982-1332

Copyright © 2008 ICBC - Insurance Corporation of British Columbia