Burnaby – ICBC will issue a second COVID-19 rebate in recognition of lower claims costs due to fewer crashes during the COVID-19 pandemic.
Mind you, it has always been your money.
ICBC will start distributing rebates averaging $120 per policy in mid-July, returning approximately $350 million in additional rebates to 2.94 million customers. This builds on the first COVID-19 rebate of $600 million for a total of $950 million.
Most customers who had an active auto insurance policy from Oct. 1, 2020, to March 31, 2021, will be eligible for the rebate. Exceptions include customers with short-term, storage or distance-based policies, whose premiums already reflect lower usage. The rebate is approximately 11% of the premium customers paid for coverage during this six-month period.
“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 received about 20% fewer crash claims than expected between Oct. 1, 2020, and March 31, 2021, but also saw a reduction in premium revenue as customers made changes to their insurance policies, held off on getting new ones or cancelled them.
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.
Rebate amounts will vary between customers, depending on whether they had a vehicle insured for the full six months and how much they paid in premiums during that time. Roughly 70% of customers will get a rebate between $60 and $200.