ICBC asked to buck-up

Photo: Carmen Weld

A light dangles from a post after a driver crashed into it and rolled his vehicle on Hwy. 97 a few weeks ago.

Penticton council may have saved local taxpayers some money this week as a resolution was passed urging ICBC to restore full coverage for damages to City property.

The resolution to "urge the Ministry of Transportation and Infrastructure to direct ICBC to reimburse the full costs of damages caused by their insured drivers," was passed on Wednesday's session of the Union of BC Municipalities conference. 

Sometime in 2013 ICBC decided it was no longer going to cover the full cost of repairing municipal structures damaged in vehicular incidents. Now they are only paying a reduced portion of wages, materials and equipment costs.

The City apparently found out about the change when they sent in a claim in Sept. 2013.

ICBC responded Feb. 3, 2014 with the new information, noting the changes were effective immediately and sent an adjusted invoice.

The issue was brought to council Feb. 17 and the resolution was endorsed by the Southern Interior Local Government Association. Later, the UBCM Resolutions Committee recommended support for the resolution to its membership and it was passed on Wednesday morning's session.

"ICBC is increasing our spending and we're saying that's inappropriate," Mayor Garry Litke said in an interview. "Local property gets damaged, a driver takes out a light pole, lights come down and that should be covered by insurance.

"We have to pay overtime for a guy to come out in the middle of the night to fix things, and ICBC just pays what they think it's worth and it's not enough." 

Litke said the city's budget did not include extra space for ICBC to change the rules. Now, making up the shortfall is costing taxpayers extra.

"In 2013 we invoiced ICBC $26,982.26 for property damage as a result of an ICBC-insured claim," said Simone Blais, communications officer with the City of Penticton. "They only paid $20,885.98 – reducing wages by 46 per cent as well as equipment and material costs."

Claims vary year-to-year depending on the nature of the accident and how many incidents are recorded.

"A quick investigation of previous years show that damages can vary between $20,000 and $100,000 – and many happen in evenings and during weekends, when overtime naturally occurs," Blais said.

Litke said it's unclear whether Minister Todd Stone will do anything about it. 

"Last year we passed a resolution on speed cameras in school zones and within 45 minutes the Premier made a statement saying it would never happen," he said. 

"Stone has made no comment on this one yet."

ICBC spokesperson Michelle Hargrave said ICBC has not made any changes to what they pay for in a claim, including claims made by municipalities.

"Any driver who causes damage to property is legally responsible for certain costs and, as their auto insurer, we will pay for those legally-obligated costs," she said in an email. "At the same time, we are always prepared to look at any individual claim where a municipality feels they haven’t been properly paid."