ICBC will issue a second COVID rebate as part of the plan to respond to fewer crashes during the past year and a half of the pandemic.
ICBC will start distributing rebates averaging $120 per policy in mid-July, returning approximately $350 million in additional rebates to 2.94 million customers. This builds on the first COVID-19 rebate of $600 million for a total of $950 million. Unlike the first rebate, for some this will be put back on their credit card, pending how a driver pays for their insurance.
Most drivers who had an active auto insurance policy from October 2020 to March of this year will be eligible for . Exceptions include customers with short-term, storage or distance-based policies, whose premiums already reflect lower usage.
The rebate is approximately 11 per cent of the premium customers paid for coverage during this six-month period.
In a statement Friday (June 11), Public Safety Minister Mike Farnworth said the insurance corporation is in a 鈥渟trong financial position,鈥� receiving about 20 per cent fewer crash claims than expected between October 2020 and March 2021, with an estimated impacts of about $450 million.
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This means that despite a reduction in $100 million in revenue due to drivers reducing or cancelling their insurance policies to reflect working from home and travel restrictions, savings totalled roughly $350 million.
ashley.wadhwani@bpdigital.ca
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