ICBC to reward good drivers, punish the bad

Details so far sketchy on new carrot-and-stick insurance discount system

Speeders and other ticketed traffic violators may pay more for their auto insurance so drivers with a clean record can get deeper discounts.

That’s part of a major overhaul of ICBC proposed by the public auto insurer that includes the shedding of 350 jobs.

The changes are subject to approval by regulators.

But the biggest move is a shift to a driving record model for calculating premium discounts, instead of relying solely on the at-fault claims history.

Discounts now top out at 43 per cent for drivers with a long claims-free record.

ICBC spokesman Mark Jan Vrem said it should cost less for someone with a clean driving record and no traffic tickets over the previous three years.

Drivers with violation tickets in that period would pay more than they do now, even if they have no claims.

“We think it’s unfair for the good drivers to be subsidizing the rates for the bad drivers,” Jan Vrem said.

But he was unable to show how that would impact various drivers, saying details of the new discount framework are still being worked out.

Nor is it clear whether the new system will replace ICBC’s relatively new Driver Risk Premium (DRP) system that already dings motorists nabbed for drunk driving and excessive speeding.

Introduced in 2009, that system was heralded as a way to make high-risk drivers pay more, even ones who don’t own or insure a vehicle.

It charges motorists an extra $320 per year for three years if caught excessive speeding. And a never-implemented second phase was supposed to charge drivers $350 per year if they rack up three or more lesser traffic tickets.

While the DRP system charges more for risky drivers, Jan Vrem said that money doesn’t yet directly go to reducing good drivers’ premiums.

“They don’t provide the kind of break a good driver should get for their good driving habits,” he said. “We think offering our customers a carrot instead of just a stick is more appropriate.”

Jan Vrem said details of the changes, including revisions to the DRP system, will be filed with the B.C. Utilities Commission this summer.

ICBC expects opponents will try to convince regulators to reject the plan on the basis that speeders shouldn’t be punished if they have no accidents.

Jan Vrem said the corporation will be ready to counter those and other arguments.

If approved, the changes would take effect in 2013 or 2014, he said.

Speeding tickets racked up now would affect insurance discounts then, he said, urging motorists to slow down and drive safely.

The rate changes will be revenue-neutral, he said, and won’t result in any more money going to the provincial government, which takes $145 million a year from ICBC’s reserves.

Billed as a modernization of the corporation, ICBC is promising a more tailored experience for its customers, with more ability to file claims online or by phone.

A document outlining the changes says ICBC must change to succeed in the future, in part because customers don’t trust the corporation and sees it as “distant and bureaucratic.”

The 350 jobs to be reduced in the claims division by the end of 2014 will include 70 management positions and will all be phased in through attrition.

“ICBC has a complex organization structure that has as many as seven layers of management between the CEO and frontline workers,” the document says, and that in future there will be no more than five or six layers of managers and supervisors, depending on the division.

It says there are no immediate plans to outsource more work but there will be some consolidation of office space.

Just Posted

Emergency crews responded to the scene of a suspicious fire at the southeast corner of the OK Café in Vanderhoof Friday, June 11. The historic building is 101-years-old. (BC RCMP photo)
OK Café in Vanderhoof alright after suspicious fire

Damage kept to a minimum by firefighters

A person receives a COVID-19 vaccine at a vaccination clinic run by Vancouver Coastal Health, in Richmond, B.C., Saturday, April 10, 2021. Northern Health confirmed it has the lowest vaccination rates amongst the province’s five regional health authorities. (THE CANADIAN PRESS/Jonathan Hayward)
Vaccination rates in Vanderhoof, Fraser Lake, Fort St James well below provincial average

COVID-19 immunization clinics for youth 12+ coming up in Fort St. James

Steve McAdam (left) is studying substrate conditions in the Nechako River and how they impact sturgeon eggs. The work will help design habitat restoration measures, said McAdam. (Rebecca Dyok photo)
Sturgeon egg studies to help inform future habitat restoration

“It’s an interesting, challenging issue,” says Steve McAdam

Saik’uz First Nation Coun. Jasmine Thomas and Chief Priscilla Mueller speak about the need for addiction treatment facility near Vanderhoof, March 2021. (Aman Parhar/Omineca Express)
Vanderhoof addiction treatment centre tries again with ministry support

Agriculture minister insists she is not interfering in land commission

Canadian Prime Minister Justin Trudeau participates in a plenary session at the G7 Summit in Carbis Bay, England on Friday June 11, 2021. THE CANADIAN PRESS/Adrian Wyld
Canada donating 13M surplus COVID-19 vaccine doses to poor countries

Trudeau says the government will pay for 87 million shots to be distributed to poor countries

Montreal Canadiens goaltender Carey Price (31) is scored on by Vegas Golden Knights defenseman Alec Martinez, not pictured, during the second period in Game 1 of an NHL hockey Stanley Cup semifinal playoff series Monday, June 14, 2021, in Las Vegas. (AP Photo/John Locher)
Habs fall 4-1 to Vegas Golden Knights in Game 1 of NHL semifinal series

Match was Montreal’s first game outside of Canada in 2021

Kelowna-Lake Country MLA Norm Letnick, assistant deputy speaker at the B.C. legislature, presides over committee discussions. The legislature is completing its delayed spring session this week, with most MLAs participating by video conference. (Hansard TV)
B.C.’s daily COVID-19 infections dip below 100 over weekend

Only 68 new cases recorded Monday, four additional deaths

The BC Ferries website went down for a short while Monday morning following a provincial announcement that recreational travel between health authorities can resume Tuesday. (Black Press Media file photo)
BC Ferries’ website crashes in wake of provincial reopening announcement

Website back up now, recreational travel between health regions to resume as of Tuesday

The Kamloops Indian Residential School is photographed using a drone in Kamloops, B.C., Monday, June, 14, 2021. The remains of 215 children were discovered buried near the former school earlier this month. THE CANADIAN PRESS/Jonathan Hayward
Communities grapple with what to do with former residential and day schools

Some tear them down as a tool to help healing, others repurpose them as tools for moving forward

FILE – Provincial health officer Dr. Bonnie Henry talks about B.C.’s plan to restart the province during a press conference at Legislature in Victoria, Tuesday, May 25, 2021. THE CANADIAN PRESS/Chad Hipolito
B.C. watching U.K.’s COVID struggles but don’t think province will see similar pitfalls

Studies show that one dose of vaccine is only 33 per cent effective in preventing B.1.617.2 spread

RCMP Const. Shelby Patton is shown in this undated handout photo. RCMP say that Patton was hit by an allegedly stolen truck that he had pulled over on Saturday morning in Wolseley, east of Regina. THE CANADIAN PRESS/HO, RCMP
Pair charged in Saskatchewan Mountie’s death make first court appearance

Const. Shelby Patton was hit by an allegedly stolen truck that he had pulled over Saturday morning

David and Collet Stephan leave for a break during an appeal hearing in Calgary on Thursday, March 9, 2017. THE CANADIAN PRESS/Todd Korol
Appeal Court rejects stay for Alberta couple facing third trial in son’s death

Pair accused in their earlier trials of not seeking medical attention for their son sooner

Highway notices like this come down effective June 14. Public health restrictions on non-essential travel and commercial operation have hit local businesses in every corner of B.C. (B.C. government)
Province-wide travel back on in B.C.’s COVID-19 restart plan

Gathering changes include up to 50 people for outdoor events

Most Read