Refuse-to-issue

An alarming number of initiatives are being contemplated that involve ICBC being ordered to refuse to issue (RTI) vehicle licensing and insurance. In practical terms this would mean that Autoplan brokers would have to collect debts and fines owing before the insurance transaction could proceed, or would see screens that would indicate the broker would be limited to only selling a two-week temporary operating permit or storage policy, or the broker would have to direct the customer to contact another agency to arrange payment of an outstanding debt before the insurance transaction could continue.

The Vancouver City Council, as part of its Project Civil City, is recommending that provincial legislation be amended to order the Insurance Corporation of B.C. to collect municipal fines. Vancouver is seeking support for this proposal from its neighbouring municipalities.

IBABC has taken the position that insurance brokers are not collection officers or enforcement officers. We are professional advisors whose training, licensing requirements and role in the insurance transaction is to put the interests of the customer first; having to deny coverage for non-motor-vehicle-related offenses is counter to that role.

Requiring insurance brokers to collect municipal fines puts an unfair burden on insurance brokerages, most of which are small businesses. It also has the potential to put licensees’ personal safety at risk. In addition, many of the municipal offenses that would be subject to a refuse-to-issue (RTI) order are minor (walking a dog off-leash, jaywalking), but the consequences of being denied a driver’s license or insurance are anything but minor. More people may drive without insurance as a result of a municipal RTI, creating other downstream hardships and costs for consumers and governments.

The City of Vancouver has other options for collecting fines. Richmond, Chilliwack and Abbotsford have implemented municipal traffic courts. Surrey uses a collection agency. They all report that their collection success has increased as a result.