cation. The EA.LR. program pat ose phased i in
ive year period starting in 1980.

evel eles inresponseto __-
Automobile Insurance
Non-Discrimination Act. .
introduced by the: Government of the
Province of British Columbia.
The aim of the FA.LR program is to
eliminate discrimiriation from auto:
urance rates~discrimination by. reason of
:”sex, Marital status and geo

auto insurance industry has tendedto
ups based on the probability of their being

invo oad i in ar‘ accident. But drivers in the:same group don’t

necessarily have the same
included people whohave

ears of age.
p by about 30%.

This dror in premiums will provide greater
benefits for single male vehicle owners

or principal operators under 25 than the Safe
Driving Incentive Grant, so the Grant will
be discontinued.

; C. ADJUSTMENT OF TERRITORIAL RATES.

The elimination of rate differences between
territories will take five years. The biggest
intitial impact will be in Victoria where the aver-
age premium will increase by $19-less in

sul ent years. Changes in other territories -
up or down -will be only a few dollars a

year~ between $2 and $10.

Nove that the Safe Driving Vehicle Discount will still be in
effect in 1980

habits ani | attitudes; soeach group
di ideni

. bring to a total of 270,000. ches humber of
0}

people whose average premium will drop by
about 25%.

for reasons of age, sex and marital status. .
At this point, the only factor in determining
premiums for Third Party Liability cover-

age will be the use of the vehicle for pleasure, -

for business, or drive-to-work. For deter-

the premium for Collision coverage,
the only factors will be the use of the vehicle
and its value.

B. NEW ACCIDENT PREMIUM

_ FOR DRIVERS

This accident premium will be introduced in
198]. It recognizes that the person behind
the wheel is responsible for the safe operation
of a vehicle, whether or not he or she is
the owner.

The amount of this premium will be $100
a year for three years for each accident
in which the driveris at fault in causing property
damage or bodily injury to another person.
The premium will be payable at the time the
fault is determined, and on the next
two anniversary dates of the accident. This
premium will notbe charged for any claim
of $100 or less.

C. ADJUSTMENT OF TERRITORIAL RATES.

In 1981 the differences between territorial rates
will be adjusted to a maximum spread of 20%.

Note that the Sufe Driving Vehicle Discount wifl sal] be in
eect m I98l

This step marks arvend to discrimination |

stand Nance et nan?

those who haven’ 1. One glaring inequity of fthis system is chat a young
man who is accident-free pays up to 34 times more for his
insurance than an older driver who has caused an accident. It simply

_ isn’t fair.

We could have eliminated discrimination by reducing rates for
young drivers and adding the amount to the premiums of all
other drivers: But that wouldn't have béen fair either.

WHAT’S DIFFERENTABOUT FAIR?

; The basice difference.in'the FA-LR. program is that it is concerned with

vidual l performance—with abilities, not probabilities. This -
ind program is based on the concept thatall vehicle owners- young.

_ andold, male and female, married and single—should pay a

base premium that is the lowest possible premium for their coverage.
And this should apply whetherthey live in Prince George, Victoria

or Oscyoos.

This will be achieved-by placing everyone's premium at the
approximate level of the present three-year accident-free rate, regard-
less of claims record: Then-and here's the big difference
premiums will be based‘ on} teal losses rather robable losses.
Accident premiums will be introduced and-charged only to

those who are responsib accidents which result inclaims. And

laced to roughly
the same level as
the present : threes free premium.
The amount will be about the same as the
premium paid by an owner who es for
the present 324% Safe Driving Vehicle
Discount. we . :

a SAFE DRIVING VEHICLE. DISCOUNT
ISCONTINUED

With everyone enjoying the same base rate,
this discount system is no longer necessary.
Instead of charging higher premiums for every-
one and then giving a discount for those

who are accident-free, ICBC is now applying
the lower base rate for everyone but

charging an additional premium for those who
are responsible for an accident. In effect,
everyone is considered innocent until proven
guilty, everyone is rated as accident-free

until they are responsible for an accident.

In 1985 there will be no differences between
territorial rates. Geographical location

will have been removed entirely as a discrimi-
nating factor in determining rates.

The FALR.
C. NEW ACCIDENT PREMIUM will now be fully in place.
FOR VEHICLE OWNERS ; In BC. the use of a
1982 will also see the introduction of an vehicle willbe the only factor
accident premium to vehicle owners
who make claima on their Collision tues for Thin Party Liab-
coverage. This is in addition to the accident and ‘alue of a vehicle will
premium for drivers, who may or may not be be the only factors
the vehicle owner The amount will be inde y ine rates for
$20 a year for three years and will be payable termining

for each claim. This amount will be pay-
able 3 at insurance renewal time, in 1982 it will

d for any claim made in the pre-
pea frargeee years.

D ADJUSTMENT OF TERRITORIAL RATES

Territorial rate differences
*., will be adjusted to

. amaximum spread
) of 159%.

Clan