ICBC losses

Many years ago, I worked for a private insurance company in Alberta. Already, back then the company required mandatory visual inspections on all vehicles 10 years old, or older. Other than brand new vehicles, all that wanted glass insurance, had to have a quick visual as well. 

Any physical damage to the vehicle, or the glass was noted at the time of insuring, any previous damage would be deducted from any future claims. Glass damage had to be repaired and re-inspected, in order to get glass insurance. Body damage if repaired, also had to be re-inspected so as not to be deducted from any future claims. 

ICBC does not have any vehicle visually inspected, other than those from out of province, prior to issuing physical coverage on vehicles. Let's say you just bought an older vehicle that has a cracked windshield and maybe a dented fender or two. You just take your bill of sale in, with the signed registration from the owner and presto, you can buy full coverage on that vehicle. Up the road, you can get yourself a new windshield by paying your deductible, or if you're in an accident that happens to receive damage to the same area that was previously damaged, you get it completely fixed. That's if they don't write the vehicle off. Also, during these visual inspections, important simple safety features were inspected, such as signal lights, tail and brake lights etc.

I would imagine that millions of dollars per year are spent by ICBC on glass and physical damage claims. How many of those involved previous damage? How much money was spent replacing previously damaged glass, or repairing preexisting damage?

It just seems like a very simple solution to part of the problem. A quick, visual inspection, before issuing physical insurance. Alberta has been doing this for years! I realize it's only a very small part of the problem, but isn't it a no brainer?

Laura Sali

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