Injury claims, not collision repairs, are the biggest pressure on ICBC rates. (Black Press files)

ICBC overbilling for crash repairs not the problem, dealers say

Collision repair shops reject union claim of inflated costs

The president of B.C.’s Automotive Retailers Association has rejected suggestions by an ICBC union that the public car insurance company’s financial pressures are partly due to overbilling on collision repairs.

With ICBC undergoing an audit by the province to find savings and curb rising vehicle insurance rates, Ken McCormack said there is no evidence behind allegations by the union representing ICBC estimators that repair shops using the ICBC Express claim program are producing unnecessary costs.

“Overbilling doesn’t happen and really can’t happen with the province-wide estimating system that won’t allow an accredited shop to submit a repair estimate that doesn’t meet established criteria,” McCormack said Monday.

ICBC is facing a deficit and a rate increase of 6.4 per cent on basic coverage and 9.6 per cent on optional insurance takes effect this month. The NDP government approved the rate increase and ordered a review of ICBC operations to seek savings.

RELATED: ICBC rates going up this month

ICBC financial statements show increasing costs of injury claims. From 2009 to 2016, claims costs rose 80 per cent, with the steepest increases for minor injuries and legal costs.

McCormack noted that the latest ICBC financial reports show collision repair costs are only 15 per cent of the total costs to ICBC.

“As suppliers, we are already as lean as we can be and there simply aren’t any more areas where we can lower costs and remain viable,” McCormack said. “The open door to fraud is with the bodily injury component and the government should be looking in that direction.”

Attorney General David Eby has ruled out adopting a no-fault insurance system that would assign a value to injuries by type and avoid the legal haggling that currently accompanies many bodily injury claims.

Just Posted

Nanaimo Community Hospice Society to launch mobile unit

Society holding open house on Aug. 28

High school players can get a jump on hoops season with VIU program

Vancouver Island University Mariners women’s basketball team launches training centre

Nanaimo RCMP seek information on alleged ‘breaking out’ bandit

Man alleged to have hid in north-end Nanaimo business washroom ceiling overnight, took monitors

Semi-truck crashes on Hwy. 4 between Port Alberni and Tofino-Ucluelet

Drivers heading in or out of Tofino-Ucluelet Friday afternoon should expect delays

Pipe arrives late, Northwest Bay Road closure extended

Road work to replace culvert in Nanoose Bay area will continue until Aug. 20

VIDEO: Dashcams are ‘unbiased witness’ when bad things happen to good drivers

The cameras sell for between $200 and $500, and are becoming increasingly popular

Beefs & Bouquets, Aug. 15

To submit a beef or a bouquet to the Nanaimo News Bulletin, e-mail bulletinboard@nanaimobulletin.com

Nanaimo charitable foundation targeting $60K for students in need

Nanaimo-Ladysmith Schools Foundation’s Stock the Lockers campaign goes until Sept. 3

Fatal overdoses in B.C. drop 30% during first half of year

A total of 538 people have died between January and June, BC Coroners Service reports

LETTER TO THE EDITOR: Nanaimo’s ex-CAO says she’s being targeted

Tracy Samra says release of confidential information was meant to damage her reputation

‘Easy Rider’ star Peter Fonda dies at 79

Actor and writer was nominated for an Oscar for co-writing the 1969 psychedelic road trip movie

Excavators help cute kid who copied their dig with his toys stay “safe at work”

Carson Carnegie wakes up at 7:00 am every morning to watch construction work on his street

‘Purple angels’ rally to help Qualicum Beach man who has brain cancer

Community helps keep health and beauty shop operating

Bob Lenarduzzi out as Vancouver Whitecaps president

MLS team is at the bottom of the Western Conference standings

Most Read