ICBC will be issuing another round of COVID-19 rebates. (photo credit: Google Street View)

By Kevin Rothwell

Average $120 per policy

ICBC to issue another round of COVID-19 rebates

Jun 11, 2021 | 10:18 AM

VANCOUVER — Working from home, and less travel is going to put more money back in the pockets of B.C. drivers.

The Insurance Corporation of British Columbia (ICBC) has announced it will issue a second COVID-19 rebate due to lower claims costs during the pandemic.

“We’ve been clear that any pandemic-related savings against ICBC’s bottom line will benefit customers,” Mike Farnworth, Minister of Public Safety and Solicitor General said. “The good news is that ICBC is in a strong financial position to issue a second COVID-19 rebate to customers, putting more money back in the pockets of B.C. drivers.”

ICBC will start distributing rebates averaging $120 per policy in mid-July, returning approximately $350 million in additional rebates to 2.94 million customers.

The first COVID-19 rebate was about $600 million for a total of $950 million.

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Most customers who had an active auto insurance policy from Oct. 1, 2020 to March 31, 2021 will be eligible for the rebate. Exceptions include customers with short-term, storage or distance-based policies whose premiums already reflect lower usage.

The rebate is approximately 11 per cent of the premium customers paid for coverage during this six-month period.

“The past year and a half has been tough on all British Columbians, but they’ve been doing the right thing, including staying closer to home and driving less because of the pandemic,” Nicolas Jimenez, President and CEO, ICBC said. “Due to lower claims, we’re in a position to support our customers and bring them some extra relief, and that’s just what we’re going to do.”

ICBC received about 20 per cent fewer crash claims than expected between Oct. 1, 2020 and March 31, 2021, but also saw a reduction in premium revenue as customers made changes to their insurance policies, held off on getting new ones or cancelled them.

The estimated impact of fewer claims is $450 million, while written premium revenue is down $100 million compared to what would normally be received for the period, resulting in net underwriting savings of about $350 million.

Rebate amounts will vary between customers, depending on whether they had a vehicle insured for the full six months and how much they paid in premiums during that time. Roughly 70 per cent of customers will get a rebate between $60 and $200.

A customer with several vehicles fully insured with ICBC Basic and Optional insurance may see a higher value COVID-19 rebate, while a customer who has a vehicle with only Basic ICBC coverage, or a vehicle that was insured for a portion of the six-month period, would see a lower value rebate. For example, a customer who insured a recreational vehicle for one month may see a very low-value COVID-19 rebate of just one or two dollars.

Unlike the first COVID-19 rebate, which ICBC issued by cheque and mailed to customers, the second COVID-19 rebate will be distributed based partly on how customers paid for their insurance policy.

Customers who used a credit card will have their COVID-19 rebate returned to the card they used. Customers who paid by cash, debit or Autoplan payment plan will be mailed a cheque to the latest address on file with ICBC. Customers can update their address online at icbc.com.

If a customer signs up for direct deposit by June 30, 2021, ICBC will deposit the rebate into their bank account.