ICBC - Affordable Auto Insurance Flashcards
What is ICBC (Insurance Corporation of British Columbia)?
A provincial Crown corporation, owned and operated by the province).
What is ICBC’s role regarding mandatory basic auto insurance in BC?
It is the SOLE provider of mandatory basic auto insurance called BASIC AUTOPLAN.
- provides 5 coverages: TPL, UM, AB, hitandrun, inverse liability
How is the additional auto coverage available in BC?
- by ICBC’s package called AUTOPLAN OPTIONAL
- by the private market
Identify challenges and target outcomes to BC auto insurance. (5)
- increasing FREQUENCY of accidents -> change high-risk driving behaviours
- CLAIMS-PER-ACCIDENT is increasing -> change claimant behaviour by product redesign
- SEVERITY of minor injuries is increasing -> change focus from cash to prompt medical care
- PROPORTION of costs due to minor injuries is increasing -> cap pain and suffering, reduce legal costs
- PREMIUMS don’t cover claim costs -> sustainable and affordable premiums
Identify opportunities to address failing in BC auto insurance.
- increase road safety (by changing high-risk driving habits)
- redesign auto product
- interim measures by ICBC
Identify special initiatives to increase road safety. (2)
- camera at intersections
- automated speed enforcement
Identify specific items to address in BC auto product redesign. (3)
- CAP pain and suffering for minor injuries
- increase AB (no fault compensation) for wages and medical payments -> lower lawyer costs
- increase PROPORTION of premiums paid out in benefits (currently on 58%)
Identify specific initiatives regarding interim measures in BC auto insurance. (3)
- claims management improvements
- non-insurance investments
- change risk-rating model
What are the key streams in implementing BC’s auto insurance reform? (4)
- policy and legislative framework development
- road safety
- product redesign
- interim measures
What are the guiding principles of an effective auto insurance system for BC? (5)
Fair Affordable Sustainable Efficient Simple
Describe the auto insurance coverage ‘inverse liability’.
Coverage in jurisdiction where local laws DON’t ALLOW CLAIMS against the person who caused the crash.