Statement from ICBC president and CEO on the BCUC's decision
September 28, 2018
Today, the British Columbia Utilities Commission (BCUC) approved ICBC's Basic Insurance Rate Design application. The changes will come into effect September 1, 2019.
The changes affect how individual Basic insurance premiums are calculated. It is designed to be revenue-neutral and won't increase or reduce the overall amount of Basic premiums ICBC needs to collect.
Statement from Nicolas Jimenez, ICBC president and CEO:
"This is a very important milestone for ICBC – these are the most significant changes in more than 30 years to how we determine Basic insurance premiums. We thank the Commission for their decision, enabling us to move forward so that we can increase fairness for all drivers in British Columbia. These changes won't address our financial challenges but will make the system fairer so that lower–risk drivers are better recognized for their safe driving behaviours and higher-risk drivers pay more of their fair share.
Earlier this year, a suite of changes were introduced to improve the auto insurance system for British Columbians. The changes included improvements to accident benefits, introducing a limit on payouts for pain and suffering on minor injury claims and an independent dispute resolution process. Together, these changes will address our financial situation, while at the same time increasing care for anyone injured in a crash."
Low-kilometre discount: ICBC will offer a 10 per cent discount for vehicles driven less than 5,000 kilometres a year. Customers who think they have a vehicle that may qualify are encouraged to provide their Autoplan Broker the vehicle's current odometer reading for annual policies with an effective date of September 1, 2018 or later. Customers can do this by providing a photo of the vehicle's odometer reading, taken within seven days, to their broker. At their following annual renewal (starting in September 2019), the customer will be asked to provide another reading of their vehicle's odometer. If the customer has driven less than 5,000 km during the year, they could be eligible for the discount.
Increased penalties: To hold higher risk drivers more accountable for their actions, Driver Penalty Point premiums (DPP) and Driver Risk Premiums (DRP) will increase by 20 per cent on November 1, 2018 and 20 per cent November 1, 2019. The DPP program applies to drivers who receive four or more penalty points in a one year period due to traffic offences. The DRP program applies to drivers who have a driving-related Criminal Code conviction, a roadside suspension or prohibition, or is guilty of excessive speeding or distracted driving.
More information is available at icbc.com/change.