B13 - Wednesday, December 3, 1980 - North Shore News ’ 8 1 WHAI’S EA.LR.IN 1981? 1980 saw the implementation of Phase | of the Fundamental Auto Insurance Rating program. The whole idea behind FA_LR is ulumately to remove any form of discrimination in automobile in- surance rates for reasons of age, sex, marital status or where a person lives in the province. It seeks to link Autoplan rates solely to an individual's driving record, habits and attitudes. And that's fair. Phase I] of the five-year FA.L.R. program will take effect on January 1, 1981. Here are the highlights: 1. REMOVAL OF AGE AS A RATING FACTOR This step completes the removal of age, sex and marital status as factors in determining how much you pay for your Autoplan insurance. From now on, no individual or group will! be penalized or favoured solely on the basis of age. 2. INTRODUCTION OF A DRIVER ACCIDENT PREMIUM In order to place financial responsibility squarely where it belongs ~ on the individual behind the wheel - a Driver Accident Premium will be introduced on January 1, 1981 It will apply to drivers of vehicles rated for pleasure or dnve-to-work use. It means that drivers of such vehicles who are responsible for an accident which results in property damage or bodily injury to others will pay an additional premium of $390 for each accident This premium may be paid in one lump sum or in three equal instalments - the first payable at the ume hability is determined, and the second and thud on the next two anniversanes of the accident. ; If the total claim 1s $100 or less, this Dnver Acadent Premium will not be charged If the hability is divided, each dnver whose share of the claim ts more than $100 will be charged the tull Dinver Accident Premium If the claim 1s less than $390, the dnver who 1s at fault may choose to make a single payment equal two the amount of the claim, rather than pay the Dnver Acadent Premium This premium 1s charged to the driver of the vehicle, whether or not he or she us che owner Failure to pay a Dnver Acadent Premium after nouce trom the Corporation will result in denial of Own | amage coverage for a subsequent claim tor a vehicle owned by that dnver There are two excepuons to this new Dnver Acadent Premium (a) tt does not apply to dinvem of vehicles rated tor commercial or business use Since the Cost of insurance is a business expense its unfair that anocm ployee diver should pay the Dnver Accident Premium when responsible tor pe ey an accident while dinving an emplover’s vehicle However accidents wall sall mean higher POsupapee COStS bor owners of such vetucdes bee aiise re business and commercial vehicles will continue to be rated under the existing Safe Driving Vehicle Discount system in 1981. (b} The Drnver Accident Premium will also not apply to drivers of motorcycles or trailers. This is because the cost of the accident premium could exceed the total cost of Autoplan insurance for these low-premium vehicles. However, motorcycles and trailers will sull be rated according to the Safe Driving Vehicle Discount system in 1981. 3. CONTINUATION OF THE SAFE DRIVING VEHICLE DISCOUNT The Safe Driving Vehicle Discount system will continue to be applied throughout 1981. For instance, if your vehicle was involved in an accident at any tme in the three years prior to December 31, 1980, you will lose, or already have lost, part of your Safe Driving Vehicle Discount. Despite any changes in the FA.LR. program, you will stall have to ‘earn back’ the full 3-year discount with the required one, two or three years of accident- tree dnving. An accident occunng after December 31, 1980, on which a Third Party claim 1s paid, will result in assessment of a Driver Accident Premium. 4. REVISIONS TO THE PENALTY POINTS PREMIUM PROGRAM In addition to the new Dnver Accident Premium tor people who cause accidents, 1981 will see a revision of the Penalty Points Premium program as a deterrent to irresponsible dnvers who acquire penalty points for traffic nolauons € munimum number of points a dnver can acquire without financial penalty is now 4 instead of 5 The maximum number 1s now 25 instead of 20 The dollar amount of the addiuona! Penalty Points Premium is calculated by squanng the number of points, equating that figure to dollars and adding 30%. 5. ADJUSTMENT OF TERRITORIAL RATES Further changes will be made in the FA.LR pro. gram towards eluminanng differences in terntonal rates in 1981, these differences will be adjusted to a maximum spread of 20% between termtones WHAD’S NEW IN 19817 Several insurance Opuons will be available to you im tYK) when you renew your Autoplan insurance Please take Gme to check chem out before you renew They are part of IC BCs Continuing program to provide a broader range of Coverage to meet your specific needs 1. UNDERINSURED MOTORIST PROTECTION Chis opoon provides extended protection to thie victims of accidents where the insurance canned by the ctriver at tale rf} is Hot subticrent - . Mag WO “| a al iti) eWWt aN Beer (gy op Sar n- my & b %, oe? 1 yen id arr), 4 \ ip to pay claims for bodily injury and death. It prondes for the victim's own Third Party Liability coverage to be applied to bnng the total payment to the higher amount of coverage. For example, ina situation where a driver at fault carries $100,009 Third Party Liability coverage but the victim carries $500,000, the higher amount can be appled to the claim. 2. INCOME REPLACEMENT If you consider that the standard No-Fault benefits would be inadequate to cover your lost eamings in the event of an injury resulung from an accident, you may wish to consider this endorsement. It pro- vides limited additonal lost income protecuon and death benefits. 3. LOSS OF VEHICLE USE You can purchase this endorsement in con- yuncoon with an Own Damage policy It provides for reunbursement on a fixed scale to cover the ex- penses of a rental vehicle when you make a valid claim for Own Damage coverage You can choose reumbursement to start 24, 48 or 72 hours after the accident 1s reported to ICBC or the pohce. It will end with compleuon of repairs, replacement of your vehicle, or the date on which ICBC tenders settlement for the loss of your vehicle 4. AUTOPLAN RATES FOR 1981 Unavoidably, Autoplan rates will increase in 1981 Why’? Quite simply because the number of acci- dents 1s going up; the severity of personal injunes 1s increasing; the cost of settling claims - both col- lision and personal rnjury - is skyrocketing. We can’t control these factors. The costs we can control, hke the administranon of Autoplan, are among the lowest for any corporatnon in the auto in surance industry in North Amenca: 16 cents of the premium dollar versus an industry average of 30 cents Inflanon plays a large part in the ns cost of settling insurance claims, but so does the uncreas- ing complexity and sophisucatuon of today’s automobiles Dual headlights, uniuzed bodies, hght weight matenals, catalyuc converters these are just some of the advances in safety, environmental protecuon, fuel economy and styling that make every accident that much more costly Settlements for injunes are also increasing cach year So, here are the rate increases scheduled tor 1981 An average increase of 31% tor compulsory Third Party Laability coverage An average increase of 48% for extended Third Party Liability and © ollision COVOET ARES Further details on all aspects of Autoplan may be tound ain the 19s] Moatornst Kat available trom your local Autoplan Age mt and trom Matar Licence Otfiees ' | ag Insurance © orporation of Brith © ohumbaa A" abate hed e Dt Ard oaacnqanneonend By es ee || y