Insurance Corporation of British Columbia
The Insurance Corporation of British Columbia (ICBC) is a provincial crown corporation in British Columbia created in one thousand nine hundred seventy three by the NDP government of Premier Dave Barrett. The original purpose of ICBC was to provide universal and affordable compulsory public auto insurance in British Columbia by operating on a non-profit basis. [Trio] [Four] However, in March 2010, Christy Clark’s BC Liberal government announced that it would require ICBC to pay the province dividends totalling some $778 million over three years, thus signalling the end of ICBC’s operation as a non-profit Crown corporation, and also making it the only for-profit public auto insurance provider in Canada. [Five] [6] These dividends eventually totalled $1.Two billion. [7] Since ICBC’s creation, its responsibilities have expanded to include driver licensing, vehicle registration, and various road safety initiatives. [8]
By law, any vehicle registered and driven or parked on public streets in British Columbia must be covered by ICBC’s basic insurance package, which can be purchased from independent brokers across the province. This basic coverage, called "Autoplan," includes protection from third party legal liability, under-insured motorist protection, accident benefits, hit-and-run protection, and inverse liability.
When ICBC was established, it primarily held a monopoly on all automobile insurance in the province, but in one thousand nine hundred seventy seven its enabling legislation was amended to permit private insurers to rival with it in the market for optional (extra) insurance (including coverages such as extended liability, collision, and comprehensive plans). [9] [Ten] ICBC resumes to both hold a monopoly on basic insurance and suggest optional extra coverage.
Like other insurance companies, ICBC bases its premiums on a client’s claims history, type of automobile, and geographic location. The Corporation’s discount plan (called "Roadstar" and "Roadstar Gold") prizes safe drivers with diminished premiums based on the number of years the driver has been free of successful claims against him or her.
ICBC is governed by a board of directors appointed according to the provisions of the Insurance Corporation Act, ICBC’s enabling statute. The board of directors, the CEO, and ICBC management govern ICBC in accordance with corporate governance best practices, and in accordance with the provisions of the enabling legislation, the Motor Vehicle Act, other legislation applicable to ICBC, and directives from the provincial Cabinet Committee. Proof of insurance is demonstrated, in part, by the application of a decal to the licence plate.
Rates applicable to ICBC’s basic automobile insurance coverage are subject to the review of, and are set by, the British Columbia Utilities Commission. In practice, however, the Cabinet of the provincial government controls ICBC’s rate setting through its power to set target financial outcomes (such as capital reserve ratios and profits), and through its capability to issue Special Directives to the BCUC. [11]
Revenue collected by the Corporation goes mostly towards paying insurance benefits and operational costs. The remainder is loyal to fulfilling ICBC’s mandate to promote safe driving (the "RoadSense" campaign), as well as various other loss prevention strategies.
On November 23, two thousand sixteen the provincial government announced that ‘luxury’ cars (those worth over $150,000) will no longer be insured by ICBC. [12] In two thousand sixteen there were approximately three thousand cars in this class insured by ICBC; the government claimed that this switch would save approximately $Two.Three million per year. High-end car dealers have criticized this switch, arguing that it would be better to adjust the rates that these car owners pay rather than disregard an entire segment of vehicles on the road. [13]
Insurance Corporation of British Columbia
Insurance Corporation of British Columbia
The Insurance Corporation of British Columbia (ICBC) is a provincial crown corporation in British Columbia created in one thousand nine hundred seventy three by the NDP government of Premier Dave Barrett. The original purpose of ICBC was to provide universal and affordable compulsory public auto insurance in British Columbia by operating on a non-profit basis. [Trio] [Four] However, in March 2010, Christy Clark’s BC Liberal government announced that it would require ICBC to pay the province dividends totalling some $778 million over three years, thus signalling the end of ICBC’s operation as a non-profit Crown corporation, and also making it the only for-profit public auto insurance provider in Canada. [Five] [6] These dividends eventually totalled $1.Two billion. [7] Since ICBC’s creation, its responsibilities have expanded to include driver licensing, vehicle registration, and various road safety initiatives. [8]
By law, any vehicle registered and driven or parked on public streets in British Columbia must be covered by ICBC’s basic insurance package, which can be purchased from independent brokers across the province. This basic coverage, called "Autoplan," includes protection from third party legal liability, under-insured motorist protection, accident benefits, hit-and-run protection, and inverse liability.
When ICBC was established, it originally held a monopoly on all automobile insurance in the province, but in one thousand nine hundred seventy seven its enabling legislation was amended to permit private insurers to rival with it in the market for optional (extra) insurance (including coverages such as extended liability, collision, and comprehensive plans). [9] [Ten] ICBC proceeds to both hold a monopoly on basic insurance and suggest optional extra coverage.
Like other insurance companies, ICBC bases its premiums on a client’s claims history, type of automobile, and geographic location. The Corporation’s discount plan (called "Roadstar" and "Roadstar Gold") prizes safe drivers with diminished premiums based on the number of years the driver has been free of successful claims against him or her.
ICBC is governed by a board of directors appointed according to the provisions of the Insurance Corporation Act, ICBC’s enabling statute. The board of directors, the CEO, and ICBC management govern ICBC in accordance with corporate governance best practices, and in accordance with the provisions of the enabling legislation, the Motor Vehicle Act, other legislation applicable to ICBC, and directives from the provincial Cabinet Committee. Proof of insurance is demonstrated, in part, by the application of a decal to the licence plate.
Rates applicable to ICBC’s basic automobile insurance coverage are subject to the review of, and are set by, the British Columbia Utilities Commission. In practice, however, the Cabinet of the provincial government controls ICBC’s rate setting through its power to set target financial outcomes (such as capital reserve ratios and profits), and through its capability to issue Special Directives to the BCUC. [11]
Revenue collected by the Corporation goes mostly towards paying insurance benefits and operational costs. The remainder is dedicated to fulfilling ICBC’s mandate to promote safe driving (the "RoadSense" campaign), as well as various other loss prevention strategies.
On November 23, two thousand sixteen the provincial government announced that ‘luxury’ cars (those worth over $150,000) will no longer be insured by ICBC. [12] In two thousand sixteen there were approximately three thousand cars in this class insured by ICBC; the government claimed that this switch would save approximately $Two.Trio million per year. High-end car dealers have criticized this switch, arguing that it would be better to adjust the rates that these car owners pay rather than overlook an entire segment of vehicles on the road. [13]
Insurance Corporation of British Columbia
Insurance Corporation of British Columbia
The Insurance Corporation of British Columbia (ICBC) is a provincial crown corporation in British Columbia created in one thousand nine hundred seventy three by the NDP government of Premier Dave Barrett. The original purpose of ICBC was to provide universal and affordable compulsory public auto insurance in British Columbia by operating on a non-profit basis. [Trio] [Four] However, in March 2010, Christy Clark’s BC Liberal government announced that it would require ICBC to pay the province dividends totalling some $778 million over three years, thus signalling the end of ICBC’s operation as a non-profit Crown corporation, and also making it the only for-profit public auto insurance provider in Canada. [Five] [6] These dividends eventually totalled $1.Two billion. [7] Since ICBC’s creation, its responsibilities have expanded to include driver licensing, vehicle registration, and various road safety initiatives. [8]
By law, any vehicle registered and driven or parked on public streets in British Columbia must be covered by ICBC’s basic insurance package, which can be purchased from independent brokers across the province. This basic coverage, called "Autoplan," includes protection from third party legal liability, under-insured motorist protection, accident benefits, hit-and-run protection, and inverse liability.
When ICBC was established, it originally held a monopoly on all automobile insurance in the province, but in one thousand nine hundred seventy seven its enabling legislation was amended to permit private insurers to contest with it in the market for optional (extra) insurance (including coverages such as extended liability, collision, and comprehensive plans). [9] [Ten] ICBC resumes to both hold a monopoly on basic insurance and suggest optional extra coverage.
Like other insurance companies, ICBC bases its premiums on a client’s claims history, type of automobile, and geographic location. The Corporation’s discount plan (called "Roadstar" and "Roadstar Gold") prizes safe drivers with diminished premiums based on the number of years the driver has been free of successful claims against him or her.
ICBC is governed by a board of directors appointed according to the provisions of the Insurance Corporation Act, ICBC’s enabling statute. The board of directors, the CEO, and ICBC management govern ICBC in accordance with corporate governance best practices, and in accordance with the provisions of the enabling legislation, the Motor Vehicle Act, other legislation applicable to ICBC, and directives from the provincial Cabinet Committee. Proof of insurance is demonstrated, in part, by the application of a decal to the licence plate.
Rates applicable to ICBC’s basic automobile insurance coverage are subject to the review of, and are set by, the British Columbia Utilities Commission. In practice, however, the Cabinet of the provincial government controls ICBC’s rate setting through its power to set target financial outcomes (such as capital reserve ratios and profits), and through its capability to issue Special Directives to the BCUC. [11]
Revenue collected by the Corporation goes mostly towards paying insurance benefits and operational costs. The remainder is faithful to fulfilling ICBC’s mandate to promote safe driving (the "RoadSense" campaign), as well as various other loss prevention strategies.
On November 23, two thousand sixteen the provincial government announced that ‘luxury’ cars (those worth over $150,000) will no longer be insured by ICBC. [12] In two thousand sixteen there were approximately three thousand cars in this class insured by ICBC; the government claimed that this switch would save approximately $Two.Trio million per year. High-end car dealers have criticized this switch, arguing that it would be better to adjust the rates that these car owners pay rather than overlook an entire segment of vehicles on the road. [13]