I HATE ICBC

Source: Vancouver Sun. Dec. 21, 2007

A 23-year-old Surrey man is taking offence at being labelled a bad driver by the Insurance Corp. of B.C.

Marcus De Rossi received a letter from ICBC this week, warning him of higher premiums for drivers with “bad driving habits.”

“I was very surprised and offended because of the aggressive wording [of the letter],” said De Rossi. “It makes me and other people worse drivers than we really are.” Marcus De Rossi admits to some traffic infractions but says ICBC’s ‘aggressive’ warning letter about the incoming Driver Risk Premium surprised and offended him. Marcus De Rossi admits to some traffic infractions but says ICBC’s ‘aggressive’ warning letter about the incoming Driver Risk Premium surprised and offended him.

About 140,000 drivers across B.C. received similar notices informing them of the new Driver Risk Premium program, which kicks in on Jan. 1.

Motorists convicted of driving-related offences such as speeding, running red lights or impaired driving will have to pay premiums ranging from $320 to $905 a year for three years.

De Rossi admits to receiving a ticket for not wearing his seat-belt five years ago, a speeding ticket two years ago, and two tickets for not displaying the “N” sign for novice drivers, but says he hasn’t been involved in any crashes and considers himself a “safe driver, 100 per cent.”

ICBC spokesman Doug Henderson said the criteria for drivers who received warning letters are at least three convictions, regardless of the type of violation, or one serious conviction, such as excessive speeding or drunk-driving.

Someone might just have minor offences, he said, but if they receive many of them over a number of years, they are considered high-risk.

Henderson said the letters are just warnings and do not affect the recipients’ premiums.

“Everyone starts with a clean slate going forward on Jan. 1, 2008,” he said. “The letters are meant to get people’s attention and make them aware so they can change their driving habits.”

Under the new program, ICBC will begin tracking driving-related offences next year, but premiums won’t be charged until January 2009.

Source: CBC. Dec. 20, 2007.

In a move which has sparked complaints, the Insurance Corporation of British Columbia has sent warning letters to some of the province’s worst drivers telling them to improve their driving habits or pay more for insurance.

“We wanted to get people’s attention,” said ICBC spokesman Doug McClelland. “The people who received this letter are the worst five per cent of drivers in B.C.”

But being told in a letter that they are putting others at risk, and that they may quickly wind up paying higher premiums, has not gone over well with some of the roughly 130,000 recipients. Full Story

What do you think of this strategy? If you have received one of these letters, please tell us how you reacted.

Source: CBC News. April 2, 2008.

Acting Solicitor General John van Dongen has issued a public apology for the activities at the ICBC repair and research centre in Burnaby, B.C., that were revealed in an internal investigation released this week.

The conduct at the facility was unacceptable to him and to the government, van Dongen said in the legislature in Victoria on Wednesday.

“I want to apologize, first of all, to the purchasers of vehicles that may have been deficient or where there was improper disclosure,” he said.

“And I want to apologize to all of British Columbia who have a right to expect integrity within their Crown corporations.”

In February, the ICBC closed the facility when it was learned that 98 repaired vehicles were being sold without full disclosure of their accident history.

At least 22 of the 98 wrecked vehicles repaired at the facility were bought by ICBC managers at rigged auctions, an internal investigation revealed Tuesday.

Van Dongen, whose portfolio is in charge of ICBC, apologized to all those who have been affected.

ICBC has refused comment on reports that at least three managers were fired over the scandal, but said PricewaterhouseCoopers is auditing the research centre’s activities and the findings will eventually be made public.

Source: CBC News. April 16, 2008.

Complaints about misconduct by employees at ICBC’s Burnaby repair facility that were made as far back as 2006 weren’t dealt with appropriately, an internal report obtained by CBC News Wednesday says.

In February, ICBC closed this Burnaby research and training facility when it was learned that repaired vehicles were being sold without full disclosure of their accident history. (CBC)In February, ICBC closed this Burnaby research and training facility when it was learned that repaired vehicles were being sold without full disclosure of their accident history. (CBC)

Concerns about activities at the Research and Training Centre were raised on three separate occasions in 2006 and 2007 but were not forwarded to senior management, wrote Richard Turner, chairman of the Insurance Corporation of British Columbia.

The report, addressed to the province’s solicitor general, says it wasn’t until January of this year that some employees blew the whistle, chief executive Paul Taylor was informed, and an investigation was launched.

Turner’s report also reveals “staff time [was] occasionally used for non-business purposes such as repairing employee vehicles.”

B.C. Solicitor General John van Dongen says independent auditors are trying to find out why no one acted on complaints made earlier. (CBC)B.C. Solicitor General John van Dongen says independent auditors are trying to find out why no one acted on complaints made earlier. (CBC)
(CBC)

In February, the Crown corporation closed its Burnaby facility when it was learned that 98 repaired vehicles were being sold without full disclosure of their accident history.

At least 22 of the 98 repaired vehicles were bought by ICBC managers at rigged auctions, ICBC’s an internal investigation revealed in early April.

Solicitor General John van Dongen said Wednesday he’s satisfied with the ICBC board’s response.

“The CEO and the board acted immediately when they became aware on Jan. 24,” van Dongen said. “They acted immediately to start an investigation.”

Independent auditors are trying to find out why no one acted on the complaints earlier, van Dongen said.

Source: The Canadian Press. April 3, 2008.

The Insurance Corporation of B.C. has turned over more information to police about a scandal involving rebuilt cars, but it’s still not clear if the Mounties will launch a criminal investigation.

The scheme saw nearly 100 written-off vehicles repaired at ICBC’s training facility in Burnaby and then sold without proper documentation of the repairs.

Twenty-two of the vehicles were bought by ICBC staff and managers at auctions that may have involved in rigged bidding.

ICBC spokesman Doug Henderson said the company initially provided the RCMP with information from an internal probe, but now it’s passed along additional details that will allow the Mounties to assess whether they need to do their own investigation.

But an RCMP spokesman said ICBC would have to make a formal complaint before a criminal investigation could be launched.

The NDP has demanded the ICBC internal probe be made public, but acting Solicitor General John van Dongen has said an independent audit being done by PricewaterhouseCoopers will eventually be made public.

Source: Globe and Mail. July 18, 2008.

Senior managers at the government-run auto insurance corporation in B.C., some employees, and their family and friends bought vehicles that had been repaired at an ICBC facility after being written off, an independent review has found.

In a highly critical forensic audit that cost $700,000, PricewaterhouseCoopers found that 55 repaired vehicles over the past 10 years were purchased by insiders at the Insurance Corp. of B.C. The audit identified 22 employees and 18 people who were either friends or relatives of employees who purchased the vehicles.

Five of the vehicles were later resold for a profit. In one instance, an unidentified employee made a profit of $2,376 on the sale of a 2005 Mini Cooper convertible that had been purchased from ICBC for $17,124.

Another employee made $1,689 on the resale of a GMC Yukon. As well, three people connected to ICBC employees - a relative and friends of two employees - made a profit on reselling repaired vehicles.

Geri Prior, the corporation’s interim chief executive officer, admitted the situation created “an appearance of conflict of interest.” She said she accepted changes recommended by PricewaterhouseCoopers to ban employees from purchasing repaired vehicles and to tighten administrative procedures.

“I would like to acknowledge that actions taken by management within ICBC were not appropriate,” Ms. Prior said. “Those who condone this activity are no longer with ICBC.”

Despite repeated questioning, Ms. Prior refused at a news conference to say whether any managers or employees were disciplined as a result of their activities. She also refused to specify how many managers are no longer with ICBC. “Our focus is on making things right for our customers,” she said.

She told reporters yesterday the corporation’s internal polices on whether employees could purchase repaired vehicles were not clear. Also, some managers condoned the practice of employees purchasing repaired vehicles, which led to concerns raised by whistle-blowers two years ago to be ignored, she said.

The corporation’s revised code of ethics will “make it very clear no employee can purchase ICBC salvage,” Ms. Prior said, adding that whistle-blowing procedures will also be improved.

NDP public safety critic Mike Farnworth said he was “very disappointed” with the lack of transparency concerning the number of people who were disciplined and the severance that was paid. Taxpayers have a right to know, he said.

“This scandal has people asking a lot of questions. They do not have to get into details but they can certainly give an indication of the number of people who were let go or who were disciplined,” he said.

However, Public Safety Minister John van Dongen, who is responsible for ICBC, said the corporation has been as transparent as possible subject to legal constraints.

“I believe they have done everything possible within the law to make individuals accountable for their actions,” he said. He also said he did not anticipate the controversy would affect public confidence in ICBC.

The audit found that an unidentified person who was either a relative or a friend of an employee made $3,715 on the sale of a 1999 Mazda Miata that had been bought for $8,285. In another instance, a friend of an employee bought a 2003 GMC Envoy in June, 2005, for $20,982. The car was sold 17 days later for a profit of $3,703. A third unidentified person with a link to an employee made $415 by reselling a 2002 Ford two months after purchasing the repaired vehicle from ICBC.

The audit also identified ICBC employees who had work done on their personal vehicles at an ICBC facility, and 94 vehicles that had been repaired and resold without proper identification of damage they had sustained.

Source: CTV. Jan. 25 2008

ICBC will increase auto insurance rates according to “high growth rate” areas as of May 1st.

People who live in higher density areas will get an increase in premiums. ICBC says there are more accidents in areas where there are more cars.

The Fraser Valley, Maple Ridge, Pitt Meadows, Pemberton and Hope areas will get an increase in their premiums by no more than six per cent.

Rates in Greater Vancouver will remain the same. In the rest of the province, rates will be slightly decreased.

Source: Source CTV. Oct. 03 2001.

The departing president and CEO of the Insurance Corp. of B.C. has negotiated a severance deal worth almost $500,000. That’s about two years in salary for Thom Thompson, whose contract with the corporation was set to expire this month.

Finance Minister Gary Collins said Thompson signed the deal under B.C.’s former NDP government. The Liberal said the amount would have been higher had he not threatened to cancel two additional deals Thompson negotiated after his appointment in 1995.

“They were unreasonable and I wouldn’t have allowed them to go forward,” Collins said. He added that he could not provide details about the two additional deals that were made with then-ICBC chairman Bob Williams.

But Nick Geer said the two deals would have increased Thompson’s pension and severance. Geer replaced Williams as ICBC chairman and he said that Thompson was not forced out of the company.

Rumours had been circulating for weeks about Thompson’s departure and it was made official in a corporate news release on Tuesday. Thompson’s annual salary was $240,000 per annum.

ICBC’s annual revenues are approximately $3 billion. The corporation is expected to earn a $35-million profit this fiscal year, but it has been the focal point of controversy in recent month.

Last fall, ICBC bought two real estate properties as investments, spending more than $120 million. The Crown corporation proceeded without the required consent of government or filing the proper government documents.

The Insurance Corporation of B.C. will no longer sell cars that have been written off and rebuilt after the company sold nearly 100 vehicles without telling the buyers about the vehicles’ accident history.

ICBC has spent $1.8-million so far buying back the cars and giving compensation to the people who bought cars from the Material Damage Research and Training Facility since 1998, a company spokesman told CTV News.

“This is a serious matter and we have taken immediate steps to correct the situation, including making things right with customers who purchased these vehicles,” said ICBC CEO Paul Taylor in a statement.

The investigation found that ICBC “lacked clear and specific policies and procedures to govern the designation, repair and sale of vehicles from its research and training facility.”

Ninety-eight vehicles repaired at the facility were sold without letting the buyer know what had been repaired and what was new since the facility was opened in 1998.

Since then, ICBC has contacted all but two of the buyers, and promised to buy back the vehicles or have them inspected.

The company has spent some $1.8-million so far on buying back 63 vehicles and compensating their owners — some $27,500 per car, said ICBC spokesman Doug Henderson.

Eleven people have opted to keep their vehicles, he said.

“There’s no concern for safety,” he said. “People bought something they thought was something else. We owe it to the customers to make things right.”

Some employees also bought cars from the facility — and ICBC doesn’t have any standards about how those sales should have taken place.

And evidence has surfaced that some employees used the facility’s time and equipment to fix their own cars, Henderson said.

But he wouldn’t say how many employees or how many cars were fixed — or whether anyone was fired for taking advantage of their position.

ICBC has also promised to stop selling vehicles from the facility, and forbid its employees from purchasing any vehicles or repairing their own vehicles.

Source: CTV. 19 Mar. 2008

Drivers in British Columbia who renew their Insurance Corporation of B.C. coverage could face an additional charge, depending on where they live or who they allow behind the wheel.

Starting May 1, ICBC has started imposing a $25 charge if additional drivers are listed on a vehicle’s insurance.

The charge applies if the secondary driver does not own a vehicle or has less experience or a worse driving record than the principal driver.

ICBC spokesman Doug McClelland also says the B.C. Utilities Commission has officially approved the 3.3 per cent rate hike that has been in effect since last May.

In addition, the commission has approved variable increases or decreases of up to six per cent to reflect risk levels posed by certain classes of vehicle or accident rates in specific areas of the province.

McClelland says variable rates affects a very small number of drivers in rapidly growing suburban areas where increasing vehicle volume creates a higher risk of crashes.

Source: CTV