ICBC has announced that they will be issuing a second COVID-19 rebate to British Columbians in recognition of lower claims costs as a result of fewer crashes as many people stayed home during the pandemic.
“We’ve been clear that any pandemic-related savings against ICBC’s bottom line will benefit customers,” said Mike Farnworth, Minister of Public Safety and Solicitor General.
“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.”
Most customers who had an active vehicle insurance policy from Oct. 1, 2020 to March 31, 2021 will be eligible to receive the rebate. Short-term, storage or distance-based policies will be exempt as the premiums for these already reflect lower usage.
ICBC will begin distributing the rebates in mid-July. Rebates are expected to average $120 per policy, returning approximately $350 million to 2.94 million customers, this is in addition to the first COVID-19 ICBC rebate which returned an estimated $600 million to users.
Although rebate amounts will vary, depending on premiums paid and whether they had a vehicle insured for the full six months, roughly 70% of customers will receive a rebate between $60 and $200.
“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,” said Nicolas Jimenez, president and CEO, ICBC.
“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 reported receiving about 20% fewer crash claims than expected between Oct. 1, 2020 and March 31, 2021. The insurance corporation also saw decreased premium revenues as customers changed their policies, held off on renewal or cancelled completely.
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.
While the first rebates issued by ICBC were distributed in cheque form, this rebate will be distributed based partly on how customers paid for their insurance policy.
Customers who paid via credit card will have the rebate returned to the card they used, customers who paid by cash, debit or Autoplan payment 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.
