Auto shops are claiming that allegations that they are overbilling the Insurance Corporation of British Columbia (ICBC) and contributing to the insurer’s difficult financial situation are fallacious.
The Automotive Retailers Association (ARA) insists that the industry has very little power over prices, and that the claims are a ploy for more union jobs with the public insurer.
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MoveUP – a union representing ICBC estimators – originally made the allegation that the express repair system introduced in 2001 led to repair costs rising. The express repair system was intended to streamline the claims process, allowing auto shops to write their own estimates and send them to ICBC for approval. If the insurer did not respond within two hours, the body shop is authorized to move forward with the repairs.
Annette Toth, MoveUP vice-president, explained that although the system did make the claims process faster, it has also led to abuse, with some shops overbilling for repair times.
“The over-inflation of the bills is something estimators see frequently,” Toth told
CTV News. “It’s a real bone of irritation for them because they know the cars shouldn’t cost that much to repair. The kind of work being done isn’t that expensive.”
Toth said that for the express system to properly function, it is imperative that auto shops’ estimates be verified.
According to MoveUP, there are half as many ICBC estimators employed as there was when it was first established 16 years ago.
“The body shops can be more accountable, and one of the ways that can happen is to have more estimators available,” Toth explained.
The auto body industry refutes the claims, however, saying that they are a political strategy to push for more union jobs. Some shops also said that they have little control over the pricing.
“Canada-wide it’s the same [pricing]. It’s set from the manufacturer,” said Craftsman Collision COO Rick Hatswell. “In our experience there is no overbilling.”
The ARA added that it is difficult to believe that any of the repair shops accredited by the ICBC, such as Craftsman Collision, would risk their accreditation for a little extra cash.
“Considering the preferred status they get through their relationship with ICBC, no shop in B.C. would risk losing that status to simply bolster the odd invoice,” ARA president Ken McCormick said. “It simply wouldn’t happen.”
The NDP has requested an audit of auto body repair businesses in the province to get to the bottom of the overbilling allegations. PricewaterhouseCoopers was tapped to perform the audit.
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