Image: Canadian Press / The Insurance Corporation of British Columbia says it will provide a $110 rebate to eligible drivers through sound financial management and investment income that exceeded expectations.

By Mike Vanden Bosch

ICBC rebate

ICBC to offer one-time rebate to eligible drivers, hold the line on basic rates

May 8, 2024 | 10:51 AM

CHILLIWACK — The Insurance Corporation of British Columbia says it will provide a $110 rebate to eligible drivers due to sound financial management and investment income that exceeded expectations.

In addition to the one-time rebate for eligible drivers, basic ICBC rates will be maintained at the same rate until March 31, 2026, representing six consecutive years in a row with no increases, according to a news release from the company.

Due to positive investment performance and what the company calls “responsible fiscal management,” ICBC’s preliminary net income for the fiscal year 2023-24 equals an estimated $1.5 billion. The total amount of the rebate is $400 million, equivalent to $110 per eligible insurance policy. As the law now requires, the balance will stay with ICBC, ensuring that rates for drivers are stabilized over the long term. The final, audited net income figure, along with a full financial summary of the fiscal year, will be released this summer.

All personal and commercial ICBC customers who had an active eligible basic insurance policy in February 2024 will receive the rebate, totalling roughly 3.6 million policies.

“ICBC is able to return $400 million to drivers because of prudent fiscal management that puts people first, and our commitment in law that ICBC’s surplus should go toward benefiting drivers instead of going to government coffers,” said Mike Farnworth, Minister of Public Safety and Solicitor General. “This rebate, alongside the decision to not increase basic rates for six years in a row, underscores the benefit of a public auto insurer. When private insurance companies make a profit, it’s at the expense of, not for the benefit of drivers.”

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An important measurement of ICBC’s financial strength is its ability to absorb adverse risks and to still fulfil its obligations to policyholders, referred to as the minimum capital test (MCT). In 2015, the indicator for ICBC’s basic capital fell below 85 per cent, and by 2018, it had effectively reached 0 per cent. Following the introduction of Enhanced Care, ICBC’s financial position has significantly improved, and today, the estimate for ICBC’s basic MCT is above 160 per cent and projected to remain strong.

David Wong, ICBC’s new president and CEO, says customers should have an updated address on file to expedite rebate processing.

“To receive your rebate as quickly as possible, we encourage customers to update their addresses and sign up for direct deposit on https://icbc.com/ or through an Autoplan broker,” Wong said. “Initial rebate payments will commence in late May, with ongoing processing until the end of July. Customers receiving rebates via cheque are advised to allow additional time for mail processing and delivery.”

How drivers receive the rebate depends on how they paid for their insurance. For people who paid by credit card, the rebate will be refunded to the credit card. People who paid by cash, cheque or debit can sign up for direct deposit or will receive a cheque from ICBC. For people who are on a payment plan, the rebate will be applied directly to an upcoming payment.