Insurance corporation issues refunds

Cheques are in the mail for customers overcharged by the province’s public car insurance provider.

The Insurance Corporation of BC (ICBC) discovered a multimillion-dollar billing error last April and announced it would reimburse customers for the mix-up.

ICBC identified that for the past six years some of its optional insurance customers had been charged for coverage using an incorrect vehicle description which led to errors in how much they paid.  

In some cases customers paid more than they had to and in other cases they did not pay enough.

An ICBC spokesperson said the insurance corporation has sent out 441,000 letters with refunds to customers for those who overpaid. Drivers who underpaid are not being asked to reimburse the difference.

According to a media release from the insurance corporation, the average refund is approximately $18 per year.

It is estimated the refunds will cost the corporation as much as $71 million to correct the problem, about double from initial estimates in the spring.

A new computer system will prevent future premium errors by using manufacturer vehicle identification numbers to identify and update vehicle descriptions in the system.