ICBC announced Friday that it’s going to send out a second COVID-19 rebate, saying there have been lower claims costs due to fewer crashes during the COVID-19 pandemic.
"We've been clear that any pandemic-related savings against ICBC's bottom line will benefit customers," said Mike Farnworth, minister of public safety and solicitor general, in a statement. "The good news is that ICBC is in a strong financial position to issue a second COVID-19 rebate to customers, putting more money back in the pockets of B.C. drivers."
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 follows 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.
ICBC says it 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, a news release said.
“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,” reads a statement. “Roughly 70% of customers will get a rebate between $60 and $200.”
