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Frequently Asked Questions
What does ICBC mean by principal operator?
Principal operator means the person who will operate the vehicle the majority of the time during the term of the policy.
ICBC has never asked customers to update the principal operator status for their vehicle before. Why now?
Declaring a vehicle's correct principal operator (the driver who is using a vehicle the majority of the time) creates more fairness among drivers.
This is common practice in the insurance industry. If an inexperienced driver is using a vehicle the majority of the time, all insurers will base the premium on the higher risk involved.
While it was not necessary for customers to re-declare a change in principal operator status if the original declaration was correct, this has resulted in many pricing imbalances that policyholders should not be expected to absorb. Customers will now need to state principal operator of their vehicle at all renewals. This ensures the right customer is paying the appropriate premium based on their risk.
If some customers have been misrepresenting the PO status to avoid paying a higher premium, won't they continue to break the rules?
While customers who have deliberately misrepresented PO status have always been subject to a breach of insurance coverage in the event of a claim, ICBC is tightening the rules by enforcing a declaration with each renewal. Once a claim occurs, a customer who declared the wrong principal operator will be more easily identified and penalized.
