Understanding Insurance Corporation of British Columbia

The Insurance Corporation of British Columbia, or ICBC, is a vital part of the province's auto insurance system. It's a Crown corporation, meaning it's owned by the government.

ICBC was founded in 1973 to provide auto insurance to British Columbians. This was a significant change from the previous system, where insurance was provided by private companies.

The corporation's main goal is to provide fair and affordable insurance to drivers. It also aims to reduce the number of accidents on the road.

ICBC has a long history of serving the province, with over 40 years of experience providing auto insurance.

ICBC was initially established to provide universal and affordable compulsory public auto insurance in British Columbia on a non-profit basis.

However, in 2010, the BC Liberal government changed ICBC's status, requiring it to pay the province dividends totaling $778 million over three years, making it the only for-profit public auto insurance provider in Canada.

This change was later reversed by the NDP government in 2017, ensuring ICBC's profits remain with the company and cannot be transferred to the provincial government.

ICBC's responsibilities have expanded over the years to include driver licensing, vehicle registration, and various road safety initiatives.

It initially held a monopoly on all automobile insurance in the province, but in 1977, private insurers were allowed to compete with ICBC in the market for optional insurance.

The 1920s saw the establishment of the British Columbia Automobile Association, which would eventually become a part of ICBC's history.

In 1925, the association began offering insurance services to its members.

The association's growth led to a significant increase in the number of vehicles on the road, resulting in a higher number of accidents.

The 1950s marked a significant shift in the way ICBC operated, with the introduction of compulsory third-party liability insurance.

This change required all vehicle owners to have insurance coverage, which helped reduce the number of uninsured drivers on the road.

The 1960s saw ICBC become a Crown corporation, with the provincial government assuming control over the organization.

This change allowed ICBC to expand its services and increase its presence in the province.

ICBC was continued as a corporation in 2010, with the Lieutenant Governor in Council appointing at least 3 members to its board.

The corporation's structure has remained relatively consistent, with the Lieutenant Governor in Council having the authority to appoint members to serve on the board.

In 2010, ICBC's non-profit status was ended, and it was required to pay the province dividends totaling $778 million over three years.

ICBC's premiums are based on a client's claims history, type of automobile, geographic location, and years of driving experience, which determines their driver factor and, subsequently, their premium.

Rates applicable to ICBC's basic automobile insurance coverage are subject to review by the BCUC, but the Cabinet of the provincial government has the power to set target financial outcomes and issue Special Directives to the BCUC.

Revenue collected by ICBC goes towards paying insurance benefits and operational costs, with the remainder devoted to promoting safe driving through the "RoadSense" campaign and other loss prevention strategies.

ICBC funds services like counselling for clients who have been in a car accident or who have had a family member pass due to a car accident.

The Corporation must keep and maintain separate and distinct accounts to record all money paid to it for premiums and other money, as well as all payments of benefits and insurance money.

Insurance Requirements are pretty straightforward. If the corporation has the power to engage in a class of insurance, designated associations and corporations must apply to the corporation for that insurance, and cannot get it from another insurer unless the corporation refuses.

For certain types of insurance, like universal compulsory vehicle insurance, the corporation must make it available in a manner that's considered adequate, efficient, just, and reasonable. The commission has the power to determine what that means and order the corporation to comply.

The commission can also set standards and practices for universal compulsory vehicle insurance and require the corporation to report on its performance. However, the commission can't change the terms or conditions of a plan of universal compulsory vehicle insurance established under the Insurance (Vehicle) Act.

The corporation may carry on business as insurer in designated classes of insurance and reinsurance. This is determined by regulation.

The Lieutenant Governor in Council has the authority to make regulations authorizing the corporation to engage in and carry on any class of insurance. This includes any insurance plan, and the regulations can also specify which provisions of this Act or the regulations do not apply.

The corporation has the right to engage in and carry on the authorized class of insurance or insurance plan without further authority than this Act and the regulations. This is true even if the corporation is not authorized to carry on insurance business under the Financial Institutions Act.

Universal Vehicle Insurance Regulation is a crucial aspect of insurance requirements in the province. The corporation must make available universal compulsory vehicle insurance in a manner, and in accordance with practices and procedures, that the commission considers are in all respects adequate, efficient, just and reasonable.

If the commission finds that the corporation is not providing universal compulsory vehicle insurance in compliance with these standards, it can order the corporation to change its practices and procedures. The commission has the power to determine and set adequate, efficient, just and reasonable standards, practices or procedures to be used by the corporation in providing universal compulsory vehicle insurance.

The commission may also require the corporation to report on its performance in providing universal compulsory vehicle insurance, including its compliance with any orders made under this section. This ensures that the corporation is held accountable for its actions and that the public is protected.

The commission's powers under this section apply to the corporation's customer base as a whole or to classes of its customers, but not to individual customers. This means that the corporation cannot be forced to change its practices or procedures for a single customer, but must comply with the commission's orders for its overall customer base.

ICBC death benefits and funeral expenses are available when an accident victim loses their life due to injuries from a traffic collision.

Immediate family members, including spouses, common-law partners, dependents, and sometimes grown children and parents, are entitled to one-time, lump-sum payments under ICBC's Enhanced Care coverage.

The amount of these payments depends on the deceased's age and income at the time of death, within certain minimum and maximum limits.

Funeral or burial expense benefits have been increased under Enhanced Care, providing up to $9,949 for funeral or burial expenses, including taxes.

These expenses can include transportation of the deceased, funeral or burial services, cremations, burial plot reservations, and grave markers.

ICBC can either pay these expenses directly or reimburse the person who incurred them based on copies of invoices or receipts.

The Insurance Corporation of British Columbia (ICBC) is a well-established organization with a rich history.

ICBC was founded in 1973, making it over 49 years old.

One of its main goals is to provide fair and affordable auto insurance to British Columbians.

ICBC has a strong presence in the province, with over 2.7 million active insurance policies.

It's a significant player in the insurance industry, with assets worth over $15 billion.