B.C. Utilities Commission approves waiving ICBC cancellation fees
The Insurance Corporation of British Columbia had to wait nearly a week for the independent B.C. Utilities Commission (BCUC) to sign off on waiving insurance cancellation fees.
But ratepayers had to continue to pay the cancellation fee until the change was officially approved late Wednesday.
The change comes into effect on Thursday.
Last week the public insurer announced plans to waive its $30 policy cancellation fee and $18 re-plating fee for people who choose to cancel their insurance.
“I think the utilities commission role is an important one. We have to make sure that there is an independent body doing the checking on whether this is viable for the corporation,” Premier John Horgan said.
“These are things that have happened in the past, whether it’s with BC Hydro or ICBC. So the commission has a role to play. I am hopeful that they will be accelerating their efforts to make sure that we have these dollars available to people as quickly as possible.”
It is unclear how many people have cancelled their insurance policy since last week and been required to pay the fee.
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Many British Columbians have seen a substantial shift in their car usage. Some drivers have opted to cancel insurance on vehicles they are not driving during the COVID-19 pandemic, while others have opted to switch to a recreational insurance to save money because they no longer commute to work.
Private insurance companies, which compete on the sale of optional insurance with ICBC, have returned between 10 to 25 per cent of rates to drivers due to a decrease in risk and costs in insurance companies.
“At a time where you have every other insurer in the country finding ways to support their customers, you have seen nothing but delays after delays after delays,” Insurance Bureau of Canada vice-president Aaron Sutherland said.
“ICBC isn’t giving back money because they know they don’t have to. It’s another reason why we have to open up their monopoly.”
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