ORDER NUMBER
G-335-19
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
the Insurance Corporation Act, RSBC 1996, Chapter 228, as amended
and
Insurance Corporation of British Columbia
December 2019 Basic Insurance Rate Design Update Tariff Amendments Application
BEFORE:
B. A. Magnan, Commissioner
on December 19, 2019
ORDER
WHEREAS:
A. On December 9, 2019, the Lieutenant Governor in Council approved Order in Council No. (OIC) 635/19 directing the Insurance Corporation of British Columbia (ICBC) to apply to the British Columbia Utilities Commission (BCUC) by December 17, 2019, for approval of rate design amendments as set out in OIC 635/19 to be effective January 1, 2020 (November 2019 Rate Design Directive);
B. On December 9, 2019, the Lieutenant Governor in Council approved OIC 636/19, amending Special Direction IC2 to the British Columbia Utilities Commission, B.C. Reg. 307/2004 (Special Direction IC2) such that, within 10 days of ICBC applying for changes to its rate design in accordance with the November 2019 Rate Design Directive, the BCUC must approve and set the changes to rates;
C. On December 9, 2019, in accordance with OIC 635/19, ICBC filed its December 2019 Basic Insurance Rate Design Update Tariff Amendments Application (Application) to the BCUC;
D. ICBC seeks approval of the amended Tariff page in the November 2019 Rate Design Directive, as provided in Appendix A of the Application, to be effective January 1, 2020. These Tariff amendments relate to matters arising since the ICBC 2018 Basic Insurance Rate Design Application, 2019 Basic Insurance Rate Design Update Tariff Amendments Application and August 2019 Basic Insurance Rate Design Update Tariff Amendments Application, reviewed and approved in accordance with OICs 458/18, 459/18, 222/19, 226/19, 467/19 and 468/19 by BCUC Orders G-188-18, G-244-18, G-109-19 and G-203-19;
E. In the Application, ICBC explains that these Tariff amendments remove the date from which at-fault crashes that occur in a fleet vehicle will begin to affect the personal claim payment record of the drivers of fleet vehicles;
F. Order G-188-18 directed ICBC, among other things, to file on an annual basis a report on the results and impact of the new rate design starting December 31, 2021; and
G. The BCUC reviewed and considered the Application in accordance with OICs 635/19 and 636/19 and considers that approval is required as directed. The BCUC has not reviewed the Application for its regulatory justification.
NOW THEREFORE the BCUC orders as follows:
1. The Tariff page attached in the November 2019 Rate Design Directive is approved as filed, effective January 1, 2020.
2. ICBC is directed to incorporate the results and impact of the rate design amendments set out in this Application within the scope of its annual reporting to be BCUC, as established by Order G-188-18.
DATED at the City of Vancouver, in the Province of British Columbia, this 19th day of December 2019.
BY ORDER
Original signed by:
B. A. Magnan
Commissioner