Insurance Corporation of British Columbia
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The Insurance Corporation of British Columbia (ICBC) is a provincial crown corporation in British Columbia created in 1973 by the NDP government of British Columbia. The original purpose of ICBC was to provide universal automobile insurance in British Columbia. Its responsibilities have expanded to include driver licensing and vehicle registration and licensing.
By law, all owners of vehicles registered in BC must purchase ICBC's basic insurance package from an independent broker. 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. At the time the Corporation was established, it held a monopoly on automobile insurance in the province, but in recent years private insurance firms have been permitted to offer optional additional coverage, such as extended liability, collision, and comprehensive plans. ICBC likewise offers optional additional coverage, in competition with these firms.
Like other insurance companies, ICBC bases its premiums on a client's claims history, type of automobile, and geographic location. Unlike most private insurers, however, ICBC is prohibited by law from setting premiums taking into account such demographic characteristics as age, sex or marital status. The Corporation's discount plan (called "Roadstar" and "Roadstar Gold") rewards safe drivers with reduced 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, and other legislation applicable to ICBC. Rates applicable to ICBC's basic automobile insurance coverage are subject to the review of, and are set by, the British Columbia Utilities Commission. Revenue collected by the Corporation goes mostly into paying insurance benefits, while some is invested in fulfilling the Corporation's mandate to promote safe driving (the "RoadSense" campaign) and pursue other loss prevention strategies. Unanticipated profits incurred by the Corporation have been applied to lower premiums.
Although it was established by a New Democratic government, successive governments of various stripes have maintained the public insurer. Occasionally movements for reform of the automobile insurance system in the province spring up, but they have thus far been unsuccessful. Poll results gauging public satisfaction with ICBC and/or support for its privatization have been mixed over the years.
[edit] Controversy
The public automobile insurance scheme has been controversial in British Columbia since its introduction over thirty years ago. The nature of the controversy can be summarized as follows:
- Critics allege that ICBC's policy of excluding demographic factors (such as age, sex or marital status) or initiatives (such as mileage based insurance) when setting premiums unfairly penalizes certain drivers by creating an actuarial subsidy. Defenders of ICBC respond that ICBC is, in fact, more fair since it bases its rates solely on an individual’s driving history, and statistics related to the correlations between accidents and type of vehicle and geographic area.
- Critics object that the public insurer unfairly competes with private enterprise by establishing a monopoly over basic insurance. Defenders claim that the absence of a profit motive keeps rates low, and that having a single insurer helps streamline costs.
- Critics claim that the true profitability of ICBC is questionable, since the means to determine whether an actual actuarial surplus occurred are not available. Defenders respond that ICBC's financial status is a matter of public record, and point to the reduction of rates in response to claims of a surplus as evidence of the insurer's good faith.
[edit] License plate decals
It is necessary to place a decal on the rear license plate as proof of current insurance in order to be permitted to drive the vehicle. Decals have been used since 1970, but they all expired on February 28 of the following year until March 1980. Then they expired at the end of the month on the decal, until 1994. Then an additional decal, with a number on it for the day it expired, was introduced. The following are the colour patterns used in years from 1980 onward:
| Year | Colour |
|---|---|
| 1980 | Black and White |
| 1981 | Red and Black |
| 1982 | Green and White |
| 1983 | Black and White |
| 1984 | Orange and White |
| 1985 | Blue and White |
| 1986 | Red and Blue |
| 1987 | Red and White |
| 1988 | Dark Blue and White |
| 1989 | Green and White |
| 1990 | Pink and White |
| 1991 | Blue and White |
| 1992 | Black and White |
| 1993 | Green and White |
| 1994 | Red and White |
| 1995 | Blue and White |
| 1996 | Black and White (Jan-Sept) |
| 1996 | Pink and White (Oct-Dec) |
| 1997 | Green and White |
| 1998 | Red and White |
| 1999 | Blue and White, thick or thin border |
| 2000 | Yellow |
| 2001 | Orange |
| 2002 | Dark Green |
| 2003 | Pink |
| 2004 | Yellow |
| 2005 | Sky-Blue |
| 2006 | Red |
| 2007 | Light Green |
| 2008 | Baby Blue |
