WHEREAS thousands of vehicle accident victims each year in BC require auto extrications and specialized services, including fire suppression by municipal fire departments, which receive no compensation for these specialized life-saving services; AND WHEREAS insurance companies in BC collect fire department charges on sales of optional vehicle own damage coverage but do not turn those fees over to the municipalities that fund BCs fire departments: THEREFORE BE IT RESOLVED that the Union of BC Municipalities request the provincial government to amend the Insurance Motor Vehicle Act to administer fire department charges through the mandatory Basic Autoplan coverage, to ensure that municipalities are compensated for providing specialized services similar to fees for services being paid to cover medical expenses, vehicle recovery and liability damages.
MINISTRY OF PUBLIC SAFETY SOLICITOR GENERAL ICBC collects premiums for expected claims based on what our customers are legally liable to pay should they be responsible for a crash. To the extent that the premium for Optional insurance considers fire department charges, the premium is charged for situations in which our customers are travelling in jurisdictions where there is a legal obligation to pay for fire department charges. As there is no legal obligation on motorists in BC to pay for fire department charges within BC, ICBC does not collect premiums, either through Basic or Optional insurance, to cover these charges. If the legislation were changed to make BC motorists responsible for fire department charges under Basic insurance, ICBC may require a rate increase. Any change in Basic insurance rates requires British Columbia Utilities Commission approval. ICBC contributes to municipalities and municipal services through annual grants in lieu of taxes and thirty-one local governments received approximately 4.2 million in 2008. ICBC also supports communities through its road safety and auto crime programs including partnerships involving local road improvements. In 2008, ICBC invested approximately 37 million in road safety.
ICBC ICBC is committed to being an important part of British Columbia communities. We contribute to municipalities and municipal services through our annual grants in lieu of taxes. In 2008, we paid out approximately 4.2 million to 31 cities, districts and municipalities. In addition, we partner with communities through our road safety programs, spending approximately 37 million across British Columbia in 2008. The costs of fire department response and the costs associated with using the jaws of life at crashes within British Columbia are not reflected in the amounts charged to motorists for Basic insurance. Changing the laws as the resolutions suggest would likely increase the cost of claims, and we may then have to seek an increase in Basic insurance rates. Any change to Basic rates requires approval by the British Columbia Utilities Commission.