ICBC Customers to Get $110 Rebate This Spring

Article content

ICBC customers will get a $110 rebate this spring, which BC’s premier says is due to the auto insurer’s strong financial performance.

The BC Insurance Corporation said the rebate will apply to 3.6 million policies, which will be paid by direct deposit or check through July.

Article content

On Wednesday morning at Victoria’s Hillside Mall, Premier David Eby began his announcement to the tune of AC/DC’s Back in Black, a nod to ICBC’s healthy financial outlook.

Article content

Eby said that under the previous BC Liberal government, which included current BC United leader Kevin Falcon, the ICBC was on the “highway to hell,” but he boasted that the BC NDP government’s reforms had left it “back in black.”

Here’s what you need to know:

Who is eligible for the ICBC refund?

All ICBC personal and business customers who had an active eligible basic insurance policy as of February will receive the refund, which will total around 3.6 million policies. Vehicles with an average base premium of less than $250 over a two-year period will not be eligible for the rebate. This includes golf carts, off-road vehicles, utility vehicles, limited-speed motorcycles, trailers, and collector cars. The $110 rebate will be issued per policy, so if a household has two cars, they will receive two rebates.

Will insurance premiums increase?

Drivers’ insurance rates will remain the same until March 31, 2026. The last base rate increase was in 2019.

How and when will I receive the refund from ICBC?

ICBC customers who paid with cash or debit card will receive a check in the mail. For direct deposit, the refund will be deposited into your bank account. Customers who paid by credit card will receive a refund on the card, while monthly payment plans will be adjusted.

Article content

Article content

ICBC said eligible customers should expect their refund between now and the end of July.

How can ICBC afford these refunds?

The refund will cost ICBC $400 million, but CEO David Wong said strong investment performance and lower-than-expected claims costs have left ICBC with $1.5 billion in net income for the year. fiscal year 2023-24.

An important factor is ICBC’s $18 billion investment portfolio, managed by BC Investment Management Corporation. ICBC’s investment income was initially estimated at $134 million as forecasters predicted a challenging year for stock markets. However, thanks to a bull run on global stock markets between November 2023 and March 2024, ICBC’s net investment income soared to $1.2 billion.

What is the financial impact of no-fault insurance?

Eby said the enhanced care model, or no-fault insurance, introduced by the NDP government in 2021 when she was attorney general, has reduced legal fees paid by ICBC and ensures more of claims costs go directly to the clients for their medical care.

The no-fault system also limited payments for minor injuries and created a civil adjudication court to resolve disputes rather than relying on the court system.

Article content

The auto insurance reforms followed years of consecutive billion-dollar losses for ICBC in 2018 and 2019, a “financial dumpster fire” that Eby blamed on B.C.’s previous Liberal government.

This is ICBC’s fourth refund since 2021, returning a total of $530 to customers. Eby said between rebates and lower rates, customers have saved about $2,000 since the introduction of no-fault insurance.

Is this a vote buying strategy by the NDP?
Five months before the provincial election, British Columbia Conservative leader John Rustad accused Eby of “trying to buy your vote, with your money, while running the largest deficit in the history of British Columbia.” He said this shows the British Columbia NDP is getting “desperate.”

Eby rejects those claims, saying the rebates are simply another benefit of ICBC’s long-overdue reforms.

He said Rustad’s plan is to eliminate the no-fault insurance model, which would cost drivers an average of $500 a year in higher premiums.

BC United leader Kevin Falcon said British Columbians will wake up to Eby’s “shell game” and that if he becomes premier, he would permanently eliminate the provincial fuel tax to save money for residents. drivers on gasoline.

Article content

[email protected]

Bookmark our website and support our journalism: Don’t miss the news you need to know – add VancouverSun.com and TheProvince.com to your favorites and subscribe to our newsletters here.

You can also support our journalism by becoming a digital subscriber: for just $14 a month, you can get unlimited access to The Vancouver Sun, The Province, National Post and 13 other Canadian news sites. Support us by subscribing today: The Vancouver Sun | The province.

Article content