ORDER NUMBER
G-191-24
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
New Leased Vehicle Framework Tariff Amendments
BEFORE:
B. A. Magnan, Commissioner
on July 18, 2024
ORDER
WHEREAS:
A. On July 4, 2024, the Insurance Corporation of British Columbia (ICBC) filed an application with the British Columbia Utilities Commission (BCUC) for approval of New Leased Vehicle Framework Tariff Amendments (Application), in accordance with Order in Council (OIC) Nos. 272, 273, 274 and 275 approved and ordered on May 23, 2024;
B. In accordance with the OICs, the New Leased Vehicle Framework will shift the obligation to license and insure a leased vehicle from the lessor to the lessee and will come into force on January 6, 2025;
C. The BCUC’s jurisdiction with respect to the regulation of ICBC’s Basic insurance is set out by the Insurance Corporation Act and Special Direction IC2 to the BCUC, BC Regulation 307/2004 as amended. The BCUC does not regulate ICBC’s Optional insurance business; and
D. The BCUC has commenced its review of the Application and considers that establishing a regulatory timetable for the review of the Application is warranted.
NOW THEREFORE the BCUC orders as follows:
1. A regulatory timetable for the review of the Application is established as set out in Appendix A to this order.
2. ICBC is directed to provide the supplemental information as outlined in Appendix B by the date established in the regulatory timetable.
3. ICBC must provide notice of the Application and this order, electronically where possible, to parties that ICBC consulted with as part of the Application by the date established in the regulatory timetable.
DATED at the City of Vancouver, in the Province of British Columbia, this 18th day of July, 2024.
BY ORDER
Original signed by:
B. A. Magnan
Commissioner
Attachment
Insurance Corporation of British Columbia
New Leased Vehicle Framework Tariff Amendments
REGULATORY TIMETABLE
Action |
Date (2024) |
ICBC notice of Application |
Tuesday, July 23 |
ICBC confirmation of compliance with notice requirements |
Wednesday, July 24 |
ICBC supplemental information |
Thursday, August 1 |
Letters of comment deadline |
Friday, August 9 |
ICBC reply to letters of comment (if any) |
Friday, August 16 |
Insurance Corporation of British Columbia
New Leased Vehicle Framework Tariff Amendments
SUPPLEMENTAL INFORMATION TO BE PROVIDED BY ICBC
1. ICBC proposes to remove the term “leased” on page 22 in Schedule B – Vehicle Rate Classes in the Basic insurance tariff because the term “Courtesy car” has been repealed from the Insurance (Vehicle) Regulation as part of the leased vehicle framework changes.[1] Please explain how courtesy cars are currently treated and what changes are expected for courtesy cars under the new leased vehicle framework.
2. ICBC identified the use of third-party monitoring service providers as a solution to address concerns raised regarding the ability to enforce insurance requirements under lease agreements between lessors and lessees.[2] Please provide additional information about these monitoring service providers, including (i) costs for the service and who will bear these costs and (ii) any differences in service compared to other jurisdictions in light of the public automobile insurance market in BC. Explain whether other alternatives were considered to address concerns regarding insurance requirements enforcement.