WHEREAS it is desirable for motorists to bear the full cost of travel, including the cost of damage to private and public property caused by collisions through insurance premiums; AND WHEREAS the Insurance Corporation of British Columbia is required by law to compensate private property owners for hit and run damage to private property, but not local governments for hit and run damage to public infrastructure: THEREFORE BE IT RESOLVED that the regulations to the Motor Vehicle Act, and specifically Section 1072b of B.C. Regulation 44783, be amended so that hit and run damage costs incurred by local governments are recoverable from ICBC.
Ministry of Public Safety and Solicitor General ICBCs basic insurance premiums are calculated on the basis that certain types of claims are exempt. Including claims for public infrastructure that are currently exempt would result in new costs to ICBC. These new costs would eventually result in increases to basic insurance premiums for all BC motorists. Municipalities obtain most of their funding from property taxes and use these monies to pay for common services for the community, including maintaining municipal property. Recovering hit and run damage costs incurred by local governments through ICBC insurance premiums would effectively transfer costs from one rate payer group to another. Ultimately, this proposal would be less efficient and result in a greater increase in total insurance premiums than a corresponding reduction in municipal taxes.
ICBC The UBCM membership has previously endorsed resolutions requesting that local governments be able to recover costs from the Insurance Corporation of British Columbia ICBC for hit and run damage to public infrastructure 2007-B9; 2006-B15; 2001-B51. ICBC has explained that home and business owners protect their assets through insurance available in the competitive marketplace; ICBC only pays the uninsured portion of a hit and run claim. Municipalities generally self-insure their property. Extending hit and run coverage to municipal property would provide a higher level of coverage than afforded to the general public. Coverage for hit and run claims is paid for through ICBCs Basic insurance premiums. Premiums collected are calculated on the basis that certain types of claims are exempt. If ICBC were to take new costs, Basic Insurance premiums would need to reflect that new cost. This would require ICBC to seek approval for an equivalent rate increase form the British Columbia Utilities Commission BCUC and would only serve to transfer costs from one rate payer group to another. ICBC is very committed to local communities and values its current and ongoing partnerships. In 2008, ICBC paid over 4.2 million in grants in lieu of taxes to 31 British Columbia cities, districts, and municipalities. In addition, ICBC spends approximately 50 millin on road safety programs and loss management services in British Columbia every year.