ICBC repair shops deny union allegations of overbilling repair costs

ICBCaccredited repair shops are denying allegations from theunion representingICBCestimators that they are overbilling customers.

In 2001, the union says a system was brought in thatallowedrepair shops to estimate the cost of damage repair. Since then, the union allegescosts have escalated because shopbillthe maximum number of hours allowed for a repair,even if it's not necessary to work that long.

"The system allows the body shop to say we think the repair costs to fix the panel,notreplace it with a new part, but fix it will be 20 hours, and the estimators who have done this work for many years say, 'whoa, hangon a second in our opinion it is a 10 or 12 hour job, even eighthours,'" saidAnnetteToth, vice president ofMoveUP. "Thebody shops, because of the nature of thesystem, are able to charge and are getting paid those extra hours."

The union says there is a backlog for reviewing estimatesdue to a lack of staff.

Costlier repairs

But auto body shops say the union'sclaims are exaggerated

"Only 7 per centon $25,000 claim, so it is a very small amount of actual dollarsspent on anything that we have judgment over. And all of those judgment times are sent in to ICBC for review," saidRickHatswell, chief operating officer of Craftsman Collision. "Often we'llget a phone call for more photos, better photos, how to understand how the repair is done, so it is not something we can just put100 hours on and hope for the best, we have to justify the time."

According to Hatswellall accredited shops use the same computer system jointly with ICBC.He says damage information is entered and photos are uploaded to the system, which thendetermines the cost for each part and the maximum hours allowed to either repair or install it.Ifthe system deems a part would take too long to fix, it tells the shop to replace it

"The whole system is set up with audit processes in place to make sure if there are errors, willingly or otherwise by shops in the estimate of repairs for vehicles, that they are addressed," saidKen McCormack, president of theAutomotive RetailersAssociation.

But McCormack questions the motivation behind the allegations he says have little supportingevidence.

"I suspect their union is motivated by ensuring their members are represented and if possible retained or increase the number of employees at ICBC," said McCormack. "We are in the best place to do a lot of the work that's currently done by some ICBCemployees."

But the union says it's not as simple as that.

"Our members take their job very seriously and they know they are responsible for public money and they know they aren't able to do the job they used to do with pride, to make sure premiums are held down," Toth said.

The B.C. Government has ordered an audit of ICBC that is expected to be completed byearly next year.