Apr 14, 2014 | News
Some Insurance Corporation of BC (ICBC) customers have overpaid their optional insurance for the past six years, putting an extra $36 million into ICBC coffers, the corporation has announced. However the same system of errors cost ICBC about $71 million from customers who were undercharged an average of $34 per year. The BC Transportation Minister has ordered that all affected customers be refunded the overpayment, which averaged $21 per year, per customer.
An incorrect vehicle description, is to blame says ICBC. The errors were discovered as part of the move to a new computer system, ICBC said in a press release.
Based on analysis to date, ICBC estimates on average 1.8 per cent or 40,000 optional insurance customers per year had an incorrect vehicle description which resulted in an overpayment on a portion of their optional insurance. The average overpayment per year was $21. ICBC also estimates on average 2.7 per cent or 58,000 optional insurance customers underpaid on a portion of their optional insurance per year. The average underpayment per year was $34.
“We are going to ensure all of our customers who overpaid on their optional insurance over the last six years receive full refunds with interest,” said Mark Blucher, president and CEO. “The modernization of our systems will ensure this doesn’t happen in the future and we sincerely apologize for any inconvenience this has caused our customers.”
ICBC is working on the five principles outlined by Transportation Minister Todd Stone including:
- the error will not result in higher premiums;
- all overpayments will be repaid with interest;
- customers who were undercharged are not to be billed retroactively;
- the problem will be fixed; and
- the board will appoint an outside auditor to review this issue.
ICBC is committed to having this issue resolved within 90 days. Updates to vehicle descriptions will be made in the coming months. New technology will use the vehicle identification number (VIN) provided by the vehicle’s manufacturer to automatically capture the vehicle description (make/model/type). Today, this process is done manually.
ICBC is working to update vehicle descriptions for affected customers, including looking back over the last six years to July 1, 2008, to refund customers who paid too much for their optional insurance. Customers who underpaid will not be charged the difference for prior years. ICBC is going as far back as its insurance system is able to accurately recalculate historical premiums for our customers.
New Driver Examinations for Class 5 Re-exams in BC
Also changing at ICBC is the new class 5 road test protocol for driver re-examinations. ICBC will apply the new standard to drivers who are already fully licensed but are having their current capabilities tested.
The new protocol allows for more time prior to and following the test for questions and concerns, to allow the driver to settle their nerves and clarify what is required of them, as well as to understand the outcome of the test and prepare for a subsequent test if they do not pass.
Also, in comparison to tests taken by new drivers in the Graduated Licensing Program (GLP), the re-examination will require fewer repetitions of driving skills, to more closely matches an older driver’s situation.
Finally, the test marking form has been simplified to be easier to understand. The standards that drivers are expected to meet during the tests have not changed.
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Apr 3, 2014 | News
Canadian drivers say they are unmistakably open-minded about purchasing usage-based auto insurance (UBI) policies, or “pay as you drive” insurance, according to a new survey by global professional services company Towers Watson. Towers Watson’s UBI Consumer Survey results are fairly consistent with other global markets and a clear indication that UBI is gaining momentum in the Canadian marketplace.
More than half (56%) of Canadian drivers said they have a strong interest in buying a UBI policy. Drivers’ acceptance of UBI programs deepens when they are asked to consider the possibility of enrolling in UBI programs. An overwhelming majority (85%) said they would be open to such programs, and that percentage increases to 94% should insurers guarantee that drivers’ premiums will not rise.
“The Canadian UBI market has quickly developed into a rapidly changing landscape,” said Robin Harbage, global lead for Towers Watson’s UBI practice and DriveAbility service offering. “Until recently, UBI in Canada was limited to just a few programs, but over the past year new entrants have entered the marketplace and increased the range of products available.”
The survey also assessed consumers’ take on value-added services, which can be bundled with a UBI policy and enabled by the underlying technology. Nearly two-thirds (65%) indicated they are willing to pay for these services, and when asked which services appealed to them most, drivers chose vehicle theft tracking (86%), automated emergency call (85%) and vehicle wellness reports (79%). Drivers said they would be willing to pay for these services, as well, with 56% prepared to pay between $3.75 and $7.50 a month.
“Canadian drivers’ indication that they acknowledge the usefulness in purchasing UBI-related, value-added services is an important signal to insurers,” said Harbage. “These services can help insurers differentiate and de-commoditize their products. They can also help them focus on a brand-new consumer base to grow new business and improve retention.”
Notably, nearly half (48%) of the respondents said they would be willing to change their driving behavior if UBI technology was installed in their car. When asked how, sticking to the speed limit (65%), keeping a safe distance from other vehicles (45%) and driving more considerately (45%) were the top changes.
Consumers said their primary concern with UBI revolved around the possibility that their premiums might increase (47%). Privacy issues were another leading worry, with specific misgivings about the sharing of consumer data (46%) and apprehensions around using data to invalidate claims (46%). “These concerns, while understandable, are not really significant enough to hinder the many benefits that UBI offers drivers,” said Harbage.
Excerpted from Canadian News Wire.
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Jan 28, 2014 | News
Canadian drivers are increasingly researching their vehicle insurance options online before visiting their insurance agent or, also increasingly, purchasing their insurance directly online.
Insurance agents need to be educated on the options available to consumers, and be able to present the advantages of dealing with them over making online purchases. Meanwhile insurance companies are seeking to make it easier for consumers to purchase directly from them.
A new competitor has recently entered the Canadian market. Drivers in Canada now have a new way of discovering Canadian insurance agencies, by using the Auto Pros company website. A new group of Canadian auto insurance policy providers have joined the online quote centre setup.
The Canadian companies that are currently available for research online are now able to quote motor vehicle policy plans. Every provider that is represented in the international system has the ability to quote prices based on the location of each driver.
This new and simplified way of obtaining pricing is a recent upgrade to the Auto Pros services this year. The inclusion of American and Canadian agencies in the lookup system is extending the research options for different policy types that drivers use most often for vehicle protection.
The Canadian provider agencies now found in the research system has increased the numbers of policies that drivers can review. Apart from basic insurer protection, policy types that can be customized are offered by select agencies and quotes are now presented online.
ILScorp offers vehicle insurance courses for agents working in BC and Ontario. Two ICBC Autoplan courses are now available at both beginner and advanced levels. Both courses review: ICBC Autoplan coverages and exclusions; accident benefits; underinsured motorist protection; hit-and-run & UMP; third-party liability; and what ICBC covers. The ILScorp Certified Ontario Auto Expert Course leads you through the coverage, common client concerns and questions, errors and omissions avoidance, options, and important considerations in giving advice about private automobile coverage in Ontario.
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Jan 22, 2014 | News
As temperatures plummet again in eastern Canada, and the snow continues to fall, it’s a great time to review and share 10 important winter driving tips. Share these winter driving tips with your insurance clients and help keep everyone safe on the road.
1. Avoid the winter slip ‘n’ slide: It’s well past the time to switch your all-season tires to winter ones (this should be done before the temperature drops below 7°C). Winter tires optimize the performance and safety of winter driving. Not convinced you need them? Consider that the braking distance of a winter tire could be up to two vehicle lengths shorter than the braking distance of an all-season tire rolling at 24 km/h. There is still plenty of winter driving weather ahead.
2. Defrost your windows well: Neglecting to defrost your windows might get you to your destination faster, but it’s a dangerous habit. Plan for a few extra minutes to clean all your car’s windows well. And don’t forget to clear off the top of your vehicle—snow could slide down the windshield and obstruct your view while the vehicle is in motion.
3. Winterize your trunk: Keeping a roadside safety kit in your trunk year-round is a good idea, but winter driving conditions require extra safety equipment. Make sure you’re carrying a scraper for the windshield, a small shovel, a sandbag, candles, and warm clothing like gloves and a hat. Be prepared if you have to get out of your car in cold weather.
4. Replace worn tires: It’s important to check your tires each winter season because worn or bald tires can be dangerous. Tires have tread wear indicator bars molded into them. A solid bar of rubber across the width of the tread means it’s time to replace the tire.
5. Don’t mix and match: Mixing tires with different tread patterns, different internal constructions and/or different sizes compromises the stability of the vehicle. Ensure your vehicle is equipped with four identical winter tires.
6. Top up your fluids: Always keep your gas tank at least half full. On very cold days, the condensation in the tank can freeze and cause problems. Also, don’t forget about your windshield-washer fluid – this is also extremely important on those sunny day!
7. Pump up your tires: For every 5°C drop in temperature, tires lose one pound of air pressure. To ensure optimum fuel efficiency and prevent irregular or premature wear, tire inflation should be checked monthly.
8. See and be seen: It is critical for drivers to see and be seen in low light conditions, and when blowing snow impairs visibility. Always drive with your headlights on.
9. Take a cellphone: For long trips, don’t forget to take a cellphone in case you need to call for help. Pull over to the side of the road and stop your vehicle before making the call.
10. Drop your speed to match road conditions: The posted speed is the maximum speed under ideal conditions. In winter, it is safer to drive below the posted speed. No matter how much experience you have, the way your car will move on snow or ice always has an element of unpredictability.
Are you an insurance agent looking for a greater understanding of vehicle insurance in your province? ILScorp has online courses for ICBC Autoplan Agents in BC and an Ontario Auto Expert continuing education course. Visit ILScorp.com to learn more about our online continuing education courses for insurance agents.
Oct 31, 2013 | News
With trick-or-treaters knocking on doors on tonight and Halloween parties this weekend, drivers are being asked to be extra cautious on the roads and parents are reminded to make a plan to help their children stay safe this Halloween.
“As a parent myself, I know how excited children are about trick-or-treating and their safety on the road may not be top of mind for them,” said Todd Stone, BC’s Minister of Transportation and Infrastructure. “That’s why the onus is on us as parents, and as drivers, to make sure children have a fun and safe Halloween.”
“Kids love to have fun on Halloween, and that can mean popping out from behind bushes to scare their friends or wearing the dark costumes of their favourite characters,” said Suzanne Anton, BC’s Attorney General and Minister of Justice. “While this is what makes the night memorable, it’s also what can make them disappear from sight for drivers on the road. Parents can add reflective stickers to their child’s candy bag and drivers should be sure to go very slow, especially through residential neighbourhoods.”
Here are ICBC’s tips for parents and drivers to stay safe:
Tips for parents:
- Dress to be seen: Halloween is about putting on spooky outfits – but that often involves dark colours. A good solution is to buy reflective tape that you can add to the outfit or even to children’s shoes or bags to help them stand out against the dark road.
- The best ghouls see everything: Masks are a key part of many Halloween costumes but it’s important that it doesn’t hinder your child’s ability to see what’s going on around them. Put the mask over your own face to check the visibility and make any necessary adjustments.
- The best ghouls hear everything too: Hearing is just as important as seeing when it comes to safety around roads. Remind your children not to use their cellphone or listen to their iPod.
- Safety in numbers: Walk in numbers to help drivers and others see you and your children. Be sure to have an appropriate number of adults to accompany the children.
- Gone haunting: If your kids are heading out for some trick-or-treating fun without you, help them plan a safe route ahead of time. Consider a route that takes them through a quiet residential area away from busy main roads and parking lots. Remind them to cross streets at designated crossing points.
Tips for drivers:
- A fright’s just around the corner: Drivers need to slow down and expect the unexpected. Children are likely caught up in the excitement of Halloween and may forget the rules of the road, so slow down and be especially alert in residential areas. Limit any distractions in your car so you can focus your full attention on the road.
- The ghouls may not notice you: Children may have very limited visibility while wearing masks and costumes so don’t assume they see you approaching. Always yield to pedestrians – by doing so, you help ensure they cross the road safely.
- Beware of those dark alleys: Surprises often lurk in the darkest of places so enter and exit driveways and alleys slowly and carefully. Watch for little trick-or-treaters when backing up.
- Don’t end on a true scare: If you’re hosting or attending a Halloween party, always make sure there are options for everyone to get home safely, such as designated drivers, transit or taxi numbers on hand.
For more road safety tips, visit icbc.com/road-safety.
Learn more about ILScorp’s ICBC Autoplan Courses for insurance agents.
