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ICBC c.a.r. shop program guide

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Page 1: c.a.r. shop Program Guide CSP1 · 2020-01-31 · ICBC c.a.r. shop program guide 2 benefits of the program As an accredited collision repair facility, you will receive: • the maximum

ICBC c.a.r. shopprogram guide

Page 2: c.a.r. shop Program Guide CSP1 · 2020-01-31 · ICBC c.a.r. shop program guide 2 benefits of the program As an accredited collision repair facility, you will receive: • the maximum

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table of contents ICBC c.a.r. shop program guide

ICBC c.a.r. shop collision repairs program �������������������������������������������������������������������������������������������������������1

applying for accreditation ����������������������������������������������������������������������������������������������������������������������������������1

maintaining your accreditation ��������������������������������������������������������������������������������������������������������������������������1

Compliance with ICBC terms and conditions ����������������������������������������������������������������������������������������������������1

Accreditation agreement �������������������������������������������������������������������������������������������������������������������������������������1

Loss of accreditation ���������������������������������������������������������������������������������������������������������������������������������������������1

benefits of the program �������������������������������������������������������������������������������������������������������������������������������������2

Promotion of accredited shops ���������������������������������������������������������������������������������������������������������������������������2

Priority access to ICBC courses ���������������������������������������������������������������������������������������������������������������������������2

Express Repair program ���������������������������������������������������������������������������������������������������������������������������������������2

Eligibility for c�a�r� shop charge-out rates �����������������������������������������������������������������������������������������������������������2

use of promotional and advertising materials��������������������������������������������������������������������������������������������������2

Approval of advertising ����������������������������������������������������������������������������������������������������������������������������������������3

Logo usage guidelines �����������������������������������������������������������������������������������������������������������������������������������������3

facility requirements �������������������������������������������������������������������������������������������������������������������������������������������8

Technology requirements ������������������������������������������������������������������������������������������������������������������������������������8

equipment requirements — onsite for each facility �����������������������������������������������������������������������������������������8

Technical reference materials ������������������������������������������������������������������������������������������������������������������������������8

Simultaneous 3D measuring equipment ������������������������������������������������������������������������������������������������������������9

Hydraulic multiple pull structural repair equipment �����������������������������������������������������������������������������������������9

Tools and equipment ��������������������������������������������������������������������������������������������������������������������������������������������9

accreditation requirements ������������������������������������������������������������������������������������������������������������������������������10

Compliance with ICBC terms and conditions ��������������������������������������������������������������������������������������������������10

Claim centre sponsorship�����������������������������������������������������������������������������������������������������������������������������������10

c�a�r� shop applicants ������������������������������������������������������������������������������������������������������������������������������������������10

Existing c�a�r� shop participants opening new locations ���������������������������������������������������������������������������������11

Repaired vehicle inspections �����������������������������������������������������������������������������������������������������������������������������11

Guarantee ������������������������������������������������������������������������������������������������������������������������������������������������������������12

Hours of business ������������������������������������������������������������������������������������������������������������������������������������������������12

Certification of technicians ���������������������������������������������������������������������������������������������������������������������������������12

Vehicle storage ����������������������������������������������������������������������������������������������������������������������������������������������������12

training requirements ���������������������������������������������������������������������������������������������������������������������������������������13

Prerequisite training ��������������������������������������������������������������������������������������������������������������������������������������������13

Apprentices ���������������������������������������������������������������������������������������������������������������������������������������������������������13

Technical training ������������������������������������������������������������������������������������������������������������������������������������������������14

appendix A ��������������������������������������������������������������������������������������������������������������������������������������������������������15

c�a�r� shop program Special Compensation Fund �������������������������������������������������������������������������������������������15

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ICBC c.a.r. shop collision repairs programThe ICBC c.a.r. shop program accredits collision repair facilities that achieve and maintain the highest standards for customer service and quality repairs. The purpose of this program is to ensure that our mutual customers receive efficient, cost-effective repairs that meet the highest industry standards for safety and quality.

Accredited collision repair facilities and ICBC work cooperatively to establish an effective and efficient business relationship that benefits our mutual customers.

The program is voluntary and open to ICBC collision repair suppliers in the province that meet the requirements outlined in this guide. Accreditation requirements are in addition to the existing ICBC supplier requirements.

This guide describes the program, benefits and requirements you must meet and maintain, how to apply for accreditation and what happens if you lose your accreditation.

applying for accreditationAn ICBC collision repair facility that meets the current ICBC supplier requirements outlined in the Claims Procedures and the accreditation requirements outlined in this Guide, may apply for accreditation.

For more information, contact the manager, estimating services at your local claim centre.

Note: At ICBC’s request you may be required to provide personal credit references for all officers, owners and shareholders. ICBC may check credit references at their discretion.

maintaining your accreditationCompliance with ICBC terms and conditionsYou are required to comply with all of the terms and conditions outlined in this program guide, the ICBC Claims Procedures and the Accreditation Agreement.

Accreditation agreementICBC c.a.r. shop participants may be offered an Accreditation Agreement in accordance with the applicable period. In conjunction with the Accreditation Agreement there is an annual membership fee and contribution to a Special Compensation Fund which is due at the start of your Accreditation Agreement term.

Sponsorship is reviewed prior to Accreditation Agreement offering.

Loss of accreditationIf you lose your accreditation status, please refer to your Accreditation Agreement.

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benefits of the programAs an accredited collision repair facility, you will receive:

• the maximum allowable charge-out rates for c.a.r. shop facilities as set out in the ICBC Claims Procedures.

• priority access to ICBC training courses

• eligibility to apply for the Express Repair program

Promotion of accredited shopsICBC promotes the use of accredited collision repair facilities to our customers:

• Program information and accredited collision repair facilities’ names are listed on icbc.com.

• We provide information on accredited collision repair facilities to customers at all claim centres.

Priority access to ICBC coursesAccredited collision repair facilities have priority access to training courses, including estimator training courses, offered by the ICBC Collision Repair Learning Centre. You also receive reduced tuition fees to ICBC training courses, as well as information about upcoming ICBC programs, products and services.

Note: Accredited collision repair facilities are responsible for all travel and accommodation expenses.

Express Repair programAccredited collision repair facilities who meet the requirements of the Express Repair program are eligible to apply. To apply, please contact the manager, estimating services at your local ICBC claim centre.

Eligibility for c.a.r. shop charge-out ratesAccredited collision repair facilities are eligible to receive the maximum allowable ICBC labour charge-out rates for accredited collision repair facilities as set out in the ICBC Claims Procedures, providing the facility meets the requirements:

• necessary to qualify for each such rate

– of the Accreditation Program Guide; and

– of the Accreditation Agreement.

These rates may be amended from time to time which then forms part of the ICBC Claims Procedures.

use of promotional and advertising materialsAs an accredited collision repair facility you are eligible to purchase optional promotional materials. To enquire about promotional material contact the Accreditation Programs department.

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Approval of advertisingAny accredited collision repair facility wishing to use the c.a.r. shop logo or reference the Accreditation program in media advertising of any type is required to contact the accreditation department for approval. Use of the c.a.r. shop logo must be in compliance with the Accreditation Agreement. ICBC will provide written approval on all advertising, including websites.

Logo usage guidelinesColour version

The preferred way to reproduce the logo is using the colour logo on a white field. Never reproduce this version over anything other than white.

Black version

Use this version only when colour is unavailable.

White version

This is the alternative way to reproduce the logo: reversed white out of a solid colour or photograph.

Minimum size of logo

To protect the legibility of the c.a.r. shop logos, it must never be reproduced in sizes smaller than those shown here. Small may be beautiful in some applications, but too small is a big problem.

for print

for screen

6 mm

26 pxl

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How to stage the logo

Every logo needs room to breathe. Always maintain the minimum clear space around the logo to preserve its integrity. To maintain clarity and impact, the logo must never appear to be linked to or crowded by copy, photographs or graphic elements.

c.a.r. shop logo usage

These rules apply to all c.a.r. shop logos.

X

1⁄2 X

X

Never reproduce the blue logo over anything other than white. Never substitute fonts.

Never outline or stylize the logo.

Accredited Collision Repairs

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c.a.r. shop logo usage (continued)

Never reproduce the coloured logo over coloured backgrounds — use the white logo.

Never treat the logo as an illustrative element. Never attach an unapproved element.

Never screen or ghost-back. Never rotate, distort, add a glow or drop shadow.

Collision Repairs

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Never use an unapproved colour.

Never use the initials and road element in isolation.

Never reproduce the logo without the ICBC cube.

c.a.r. shop logo usage (continued)

Generic Collision Repairs

Collision Repairs

Generic Collision Repairs

Collision Repairs

Never stack the logo.

Never repeat the logo as a pattern.

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c.a.r. shop logo usage (continued)

For black and white reproduction over a background lighter than 25% black, use the black logo. For black and white reproduction over a background darker than 25% black, use the white logo.

Never reproduce the colour logo over photos — use the white logo.

Never place any logo over a pattern.

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Other logo usage considerations

If you have any questions about these guidelines and the use of the ICBC c.a.r. shop logo, please refer to your Accreditation Agreement or talk to an ICBC Accreditation program representative.

Permitted uses of the ICBC c.a.r. shop logo

As an authorized licencee under the c.a.r. shop Trademark Licence Agreement, you are permitted to use the ICBC c.a.r. shop logo on your business’s:

• Print and online marketing materials promoting the c.a.r. shop program on brochures, leaflets, posters, newspaper and magazine advertising, and your website;

• Exterior signage such as sandwich boards, awnings, and window displays;

• Stationery such as letterhead paper, notepads and business cards; and

• Branded apparel and merchandise such as t-shirts, coffee mugs, notepads, pens, etc.

Use of the logo must comply with the following requirements in addition to the restrictions set out in the Accreditation Agreement:

• The ICBC c.a.r. shop logo is only to be used in materials which are co-branded with your business name, logo, trademark or other mark.

• The ICBC c.a.r. shop logo must appear less prominent than the business name when used.

facility requirementsCollision repair facilities vary in their level of customer amenities. The customer reception area must be separate from the repair areas and have its own direct entrance. You are required to comply with all applicable building codes, regional district and/or municipal by-laws, environmental regulations and WorkSafeBC occupational health and safety requirements.

Technology requirements• Each participant is required to have computer equipment with software capable of accessing

the internet.

• In order to communicate with ICBC, each participant must also have an email account with an internet service provider.

equipment requirements — onsite for each facilityYour facility is required to have the following equipment onsite to repair or replace any vehicle components to accepted industry standards and pre-accident condition.

Technical reference materials• Access to upper and lower vehicle dimensional data for domestic, foreign and light trucks including

current and previous six model years.

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• Collision Repair Estimating System (complete set of current model/year manuals or current model/year automated system).

Note: Online data is permitted with Site licenses or Enterprise licenses. (Copy of written contract is required.)

Simultaneous 3D measuring equipment• Equipment capable of establishing a datum plane and making simultaneous three dimensional

measurements on symmetrical and asymmetrical unibody and full frame vehicles.

Hydraulic multiple pull structural repair equipmentFrame and structural repair equipment: hydraulic, independently controlled, multiple pulling equipment consisting of towers or a complete vector system or combination as follows:

• two (2) power posts/towers OR

• two (2) 10-ton hydraulic rams with a complete floor or bench system capable of performing vector pulls OR

• one (1) power post/tower and one (1) 10-ton hydraulic ram with a complete floor or bench system capable of performing vector pulls

• anchoring system for full frame vehicles

• four point anchoring system for unibody vehicles

Tools and equipment• battery charger

• jack stands (minimum of four)

• floor jack

• MIG welder (200 amps @ 35% duty cycle required)

• oxygen acetylene welding equipment

• headlight alignment system

– plastic repair system (two systems required)

– adhesive/chemical bond AND

– airless welder OR

– hot air welder.

• paint refinish system that meets OEM standards

• spray booth

• spray gun as specified by paint product manufacturer or approved equivalent (if applicable)

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accreditation requirementsCompliance with ICBC terms and conditionsYou are required to comply with all of the terms and conditions outlined in this program guide and the ICBC Claims Procedures.

Claim centre sponsorshipSponsorship is reviewed on an ongoing basis in conjunction with the Accreditation Agreement term.

All sponsorship issues must be documented and communicated in writing, to the applicant/participant by the manager, estimating services.

The local ICBC claims centre estimating manager, or designate, will evaluate the applicant. Consideration for program sponsorship is based on the following criteria:

• applicant being able to demonstrate there is a level of trust between ICBC and the applicant that would support the sponsorship. Such trust can be determined to exist if there is no (within the previous 12 months) documented history of non-compliance with ICBC MD Policy and Procedures.

• has been an ICBC supplier for a minimum of 12 months immediately prior to the application: or

• has submitted 100 claims for payment: or

• demonstrated successful management of a c.a.r. shop facility for a period of at least one year.

• the accredited collision repair shop is solvent, and meeting its financial obligations to third parties as they become due,

• there is no outstanding tax demand, garnishing order or court order against the applicant.

• a proceeding for the relief of creditors or any petition under the Bankruptcy Act of Canada has not been filed by or against the accredited collision repair shop, and is not discharged.

• applicant/participant has no justified documented customer service complaints over a six-month period.

• no evidence of documented previous poor repair quality within the past 12 months.

• There has not been an unauthorized use of ICBC’s proprietary marks.

• Applicant is in compliance with Accreditation programs’ requirements at the time of application and ongoing compliance once accepted into the program.

c.a.r. shop applicantsICBC c.a.r shop applicants must be able to demonstrate the ability to repair vehicles to industry standards. Applicants must be proficient in the use of all shop equipment. Applicants will be required to demonstrate proficiency through 12 quality repaired vehicle inspections over a three-month period (in the case of lower volume facility, this may be extended). Quality repaired vehicle inspections that have been completed within the previous 12 months of application, may be considered.

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Existing c.a.r. shop participants opening new locationsExisting c.a.r. shop participants in good standing that open new facilities may apply for accreditation once the facility is open for business. To qualify, existing c.a.r. shop participants must meet the following:

• All pre-existing locations are c.a.r. shop participants in good standing.

• Technicians and front-end staff are from an existing c.a.r. shop facility.

• Six quality repaired vehicle inspections will be completed within a one month period (in the case of a lower volume facility, this may be extended). One inspection will be performed on a vehicle that has had moderate structural damage as specified in the “Repair Vehicle Inspections” section in this guide.

• c.a.r. shop status will be granted after the six quality repaired vehicle inspections are completed and approved.

• Sponsorship is facilitated between the applicant and Accreditation programs.

Repaired vehicle inspectionsA minimum of one inspection will be performed on a vehicle that has had moderate structural damage that requires the use of pulling and aligning structural components while using the applicant’s anchoring, pulling and measuring equipment.

The repairs will be inspected in three separate stages as follows:

1. Vehicle is stripped in preparation for pulling. Vehicle is set up with four-point anchoring, simultaneous three-dimensional measuring system and pulling equipment capable of multiple pulls at any angle. Shop must demonstrate knowledge of their equipment and discuss the repair plan.

2. All structural repairs have been completed including the replacement of weld-on components. At this time body filler may be applied but seam-sealer cannot. All welded and/or repaired areas must be visible for an inspection. The ICBC inspection will examine the welds, amount of body filler applied, stressed relieved areas, etc. The applicant’s measuring system must be utilized on the above vehicle to demonstrate proficiencies in set-up and diagnostic procedures. This procedure will include documenting that the repaired vehicle’s dimensions are within the manufacturer’s tolerances.

3. Final inspection: the vehicle is assembled and at the state where it would be returned to the customer. The ICBC representative will inspect the repairs to ensure the operations were performed in accordance with the estimate and to industry standards.

Note: Photos must be completed for the three above mentioned stages of repair.

Inspections are documented on c.a.r. shop Quality Inspection Reports (CSP46A). An ICBC representative will take photos of the repairs and document the repairs done to the vehicle. The vehicle owners will be asked to provide details on the level of quality service provided by the collision repair facility applicant.

Repaired vehicle inspections will not commence until a completed accreditation application has been submitted and reviewed by the Accreditation program's department.

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GuaranteeICBC c.a.r. shops will provide a written lifetime guarantee to vehicle owners for ICBC repairs. This lifetime guarantee certifies repairs are handled according to the highest quality and safety standards. The guarantee must contain your facility’s name, customer and vehicle information and the ICBC c.a.r. shop logo.

ICBC c.a.r. shops must be given an opportunity to correct sub-standard repairs; sub-standard repairs must be corrected promptly under your facility’s guarantee. ICBC will work with you to satisfy the customer if a dispute arises.

In situations with extenuating circumstances and with the customer's authorization, the participant can arrange to have repairs corrected at a secondary c.a.r. shop. A written agreement with the original c.a.r. shop on the provision of guarantee is required.

If a workmanship issue arises involving a sublet repairer (someone contracted by you), you are responsible for resolving the issue with the repairer on behalf of the customer.

If there is a warranty request by a customer where the accredited c.a.r. shop ceases to carry on business operations (closed or insolvent), ICBC will determine if the warranty request is related to the original repairs performed by the closed accredited c.a.r. shop. The manager of ICBC Accreditation program may access the Special Compensation Fund to cover the costs of the repair.

Note: For further details on the Special Compensation Fund, refer to Appendix A.

Hours of businessTo reduce possible delays for our mutual customers, please advise the manager, estimating services, or designate, at your local ICBC claim centre of any closures due to unforeseen circumstances.

Certification of techniciansAll technical employees must hold a British Columbia recognized trade qualification or trade qualifications from other Canadian jurisdictions. Additional technical employees may be registered into an apprenticeship agreement (between the employee and sponsoring c.a.r. shop) for the following trades:

• automotive collision repair service technician

• automotive paint and refinishing technician

• automotive refinishing prep technician

Vehicle storageYou are required to provide secured storage for all customer vehicles.

Facilities are required to have adequate storage capacity to meet their volume or provide off-site secure storage. Addresses of off-site storage facilities must be included on the facility’s garage and commercial general liability policies.

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training requirementsAll technical personnel must complete trade specific training. Technicians are required to obtain the predetermined number of hours within the facility’s applicable accreditation training period.

In addition, your facility must comply with Waste Management Act, Ozone Depleting Substances and other Halocarbons Regulations. For facilities within a municipality that is a member of Metro Vancouver, you must comply with the Greater Vancouver Regional District Air Quality Management Bylaw No. 1082, 2008.

All technical training courses must be approved by the ICBC Collision Repair Learning Centre.

Approved training is valid for one year from the date of course completion.

Note: Upgrade training means the training course taken by a technician must not be duplicate training. Duplicate training will not qualify for credited training hours.

Prerequisite trainingThe applicant’s technical personnel are required to complete prerequisite training prior to acceptance of their application. This training must be completed within a maximum of 12 months prior to the Accreditation program's receipt of the applicant’s accreditation application.

ApprenticesApprentices are exempt from the c.a.r. shop training requirements for the duration of their apprenticeship. Upon completion of their apprenticeship, they will receive a one year exemption from the technical training requirements. Apprentices that complete additional technical training while a registered apprentice may carry forward 8.0 hours of trade specific technical training and apply this to their first year of technical upgrade training to meet program requirements.

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Technical training

prerequisite (c.a.r. shop applicants)

Year 1 (existing c.a.r. shops)

16 hours trade specific technical upgrade training 8 hours trade specific technical upgrade training

Year 2 8 hours trade specific technical upgrade training

Year 3 8 hours trade specific technical upgrade training

Year 4 8 hours trade specific technical upgrade training

Year 5 8 hours trade specific technical upgrade training

Year 6 Note: c.a.r. shop member’s technicians that have completed technical upgrade training and can document a minimum of five (5) consecutive years of approved technical training, can apply and may be granted a training exemption for the sixth year of accreditation. All training documentation must be in order before the request will be reviewed OR 8 hours trade specific technical upgrade training

Year 7 Minimum 4 hours trade specific technical upgrade training is required every second year.(for example, training required on 7, 9, 11th year, etc.)

Technician’s previous documented technical upgrade training may be considered for prerequisite or annual training qualifications.

All paint, refinish and prep technicians must follow the above training chart until they have depleted their “product line specific” training and product specific plastic repair training, if applicable, and any/all legislated training.

c.a.r. shops with new technical employees have a 90 day probationary period before commencing training, and must have their technical training completed on or before the facility’s next annual training date. If a technician is hired within 90 days of the facility’s annual training date a new hire exemption may be granted.

Note: Typically only 8 hours of technical training may be used per year, but consideration may be made to employees that have received multiple days of approved technical training in the c.a.r. shop member’s training year.

c.a.r. shops will be required to submit a Training Report (CSP366T). The Training Report must be completed in full listing all technical employees including apprentices. Copies of the employees’ technical training certificates must also be submitted.

Failure to complete and submit your training report may result in termination from the c.a.r. shop program.

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appendix Ac.a.r. shop program Special Compensation Fund

A. Introduction and Background

The Insurance Corporation of British Columbia (“ICBC”) wishes to develop and administer a Special Compensation Fund (the “Fund”) in connection with ICBC’s current c.a.r. shop Program (the “c.a.r. shop Program”). Pursuant to the c.a.r. shop Program, ICBC accredits certain collision repair facilities which have applied for and have received a supplier number from ICBC, and which achieve and maintain the high standard for customer service and quality repairs established by ICBC (collectively, the “Accredited Repair Shops”, and each an “Accredited Repair Shop”).

In order to participate in the c.a.r. shop Program, each Accredited Repair Shop is required to enter into a form of Accreditation Agreement with ICBC (the “Accreditation Agreement”), which Accreditation Agreement sets out: (a) the terms and conditions under which each Accredited Repair Shop operates and functions under the c.a.r. shop Program, (b) the qualifications, benefits, responsibilities and obligations of each Accredited Repair Shop under the c.a.r. shop Program, and (c) the standards established by ICBC which each Accredited Repair Shop must meet or exceed as an accredited repair facility under the c.a.r. shop Program.

Pursuant to the terms of the Accreditation Agreement, every Accredited Repair Shop participating in the c.a.r. shop Program is obligated to provide all mutual customers of ICBC and the Accredited Repair Shop (the “Customers” and each a “Customer”) with a written lifetime guarantee, acceptable to and approved by ICBC, with respect to repairs made by the Accredited Repair Shop to a Customer’s vehicle (a “Lifetime Guarantee”).

B. Purpose of Special Compensation Fund

The purpose of establishing the Fund in connection with the c.a.r. shop Program (the “Fund Purpose”) is to make funds available to ICBC in order to cover repair costs incurred by ICBC where a Customer has a claim under a Lifetime Guarantee given by an Accredited Repair Shop that has become insolvent and/or has ceased to carry on business operations.

The Accredited Repair Shops and ICBC must work cooperatively in order to benefit their mutual Customers. There is a high level of trust between ICBC and Accredited Repair Shops which supports the c.a.r. shop Program and ICBC has high expectations that the Accredited Repair Shops will meet or exceed the requirements and standards set out in the form of Accreditation Agreement regarding customer service, equipment, training, guarantees and business practices. ICBC believes it is important that each Accredited Repair Shop stand behind the repair work they undertake as part of the c.a.r. shop Program by providing Lifetime Guarantees to their Customers. ICBC further believes that it is vital that the Accredited Repair Shops support the creation of the Fund to provide long-term financial strength and support for the Lifetime Guarantees provided by the Accredited Repair Shops as part of the c.a.r. shop Program.

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C. Contributions to the Special Compensation Fund

1. Amount of Contributions

It is the intention of ICBC that repair facilities will be required to make the following contributions to the Fund (collectively, the “Contributions”) in connection with the c.a.r. shop Program:

(a) a contribution in the Contribution Amount (defined below) at the time a repair facility initially applies to become, and is accepted by ICBC as, an Accredited Repair Shop participating in the c.a.r. shop Program; and

(b) a contribution in the Contribution Amount on an annual basis at the time a participating Accredited Repair Shop is accepted by ICBC for re-enrolment in the c.a.r. shop Program (the “Annual Contribution”). The Annual Contribution is in addition to the annual re-enrolment administration fee payable by an Accredited Repair Shop to ICBC at the time of its annual re-enrolment with respect to the c.a.r. shop Program.

2. Prescribed Amount

Initially, the amount of each of the Contributions payable by new applicants to the c.a.r. shop Program and payable annually by participating Accredited Repair Shops (the “Contribution Amount”) will be set at $300.00 in order to establish the Fund. The Contributions will remain at this prescribed amount until such time as the net capital value of the Fund reaches an optimal amount (the “Prescribed Amount”) as set out below or subsequently amended by the Fund Committee (defined and described below) from time to time depending on circumstances. The entire amount of the Contributions will be paid into the Fund.

3. Amendments to Prescribed Amount and Contributions

Initially, the Prescribed Amount for the Fund shall be $300,000.00. When the Fund reaches the Prescribed Amount, the Contribution Amount may be amended from time to time, at the sole discretion of the Fund Committee, in order to maintain the Fund at the Prescribed Amount through a combination of investment returns and regular payment of Contributions.

Advance written notice will be provided to all Accredited Repair Shop participating in the c.a.r. shop Program should any changes or amendments be made by the Fund Committee with respect to the Contribution Amount payable into the Fund or with respect to the Prescribed Amount.

D. Description of Special Compensation Fund

The Fund will be structured so that it is not owned by or the property of ICBC. ICBC’s intent is to ensure that money paid into the Fund, or received by ICBC for the Fund, is not subject to any process of seizure, garnishment, attachment or execution under any legal process by any creditor of ICBC.

Any and all amounts paid into the Fund will be used and dealt with by ICBC and the Fund Committee only for the Fund Purpose and not for ancillary purposes. The Fund will consist of:

(a) payments of Contributions made to the Fund;

(b) any interest or other income of the Fund; and

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(c) any additional source of revenue which may be determined from time to time by the Fund Committee.

E. Administration of Special Compensation Fund

1. Rules Governing Administration and Operation of Special Compensation Fund

ICBC’s Corporate Controller (the “Controller”) will have the power and authority to make any and all rules with respect to the administration and operation of the Fund, including but not limited to rules to do any of the following:

(a) establish a special compensation fund committee (the “Fund Committee”) and delegate certain authority and responsibility with respect to the Fund, other than rule-making authority, to the Fund Committee as a whole, or to any member of the Fund Committee;

(b) establish conditions, qualifications and limitations with respect to making payments from the Fund;

(c) establish policies and procedures to be followed with respect to making payments from the Fund;

(d) provide for the administration and investment of the Fund;

(e) determine, from time to time, the Contribution Amount in respect of the Contributions and the Prescribed Amount;

(f) establish procedures for reviewing, considering, approving and documenting Repair Requests (defined and described below) made by Customers in relation to Lifetime Guarantees;

(g) establish reporting requirements with respect to the Fund; and

(h) place general limitations on the amounts that may be paid out of the Fund (if applicable).

2. Special Compensation Fund Committee

(a) Composition of Fund Committee

The Controller will establish the Fund Committee and will act as the Chair of the Fund Committee. The Fund Committee will be comprised of five (5) members, of whom:

i. three (3) members of the Fund Committee will be nominated by and be representatives of ICBC, and such three (3) members shall include:

(A) the Controller;

(B) ICBC’s Manager, Accreditation Programs (the “Accreditation Manager”); and

(C) an individual nominated by ICBC;

ii. one (1) member of the Fund Committee will be the Chair of the Collision Repair Division of the Automotive Retailers Association who will be nominated by and be the representative of the Automotive Retailers Association; and

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iii. one (1) member of the Fund Committee will be an individual owner of an Accredited Repair Shop or an individual who has an ownership interest in an Entity1 which owns an Accredited Repair Shop, who will be nominated by and be the representative of the New Car Dealers Association of B.C.

If a member of the Fund Committee resigns or ceases to be a member of the Fund Committee for any reason (the “Retiring Member”), the entity which nominated the Retiring Member will nominate an individual to fill the vacancy created and as soon as reasonably possible following that nomination, the Controller will fill the vacancy by appointing that nominee as a member of the Fund Committee.

(b) Delegation of Power to Accreditation Manager and Fund Committee

The Accreditation Manager will have the authority, power and responsibility to deal with and handle all matters in connection with, as well as make all decisions with respect to, reviewing, approving and documenting Repair Requests (defined below) as well as approving and implementing payments from the Fund (each a “Fund Payment”). The Accreditation Manager will ensure that Repair Requests are reviewed, approved, documented and processed, and all payments are made from the Fund in accordance with certain practices and procedures established and developed by the Controller and ICBC (the “ICBC Procedures”). A copy of the ICBC Procedures will be provided to the Fund Committee.

The Fund Committee will have the authority, power and responsibility to:

(i) determine, from time to time, the Contribution Amount and the Prescribed Amount in relation to the Fund; and

(ii) report on the Fund and certain Fund activities (to all Accredited Repair Shops participating in the c.a.r. shop Program, the Automotive Retailers Association and the New Car Dealers Association of B.C.) on a bi-annual basis by producing Reports (as defined below) in the form discussed in Part G below.

Although the Accreditation Manager and the Fund Committee will be delegated the above-noted authority, power and responsibilities with respect to the Fund, such authority, power and responsibilities will be exercised by the Accreditation Manager and the Fund Committee, respectively, at the discretion of, and under the ongoing supervisory oversight and scrutiny of the Controller. The Controller will also have the ability to review and alter any decision made by the Accreditation Manager and/or the Fund Committee with respect to the Fund.

(c) Quorum and Decisions of Fund Committee

The quorum for meetings of the Fund Committee will be attendance by 100% of the members comprising the Fund Committee (either in person, by conference telephone or by such other means of holding a meeting as the Chair of the Fund Committee permits). If at any time during a meeting of the Fund Committee, the quorum ceases to exist, then the Fund Committee will stop transacting business until such time as it either regains a quorum or until another meeting of the Fund Committee is called.

Questions arising at any meeting of the Fund Committee must be decided by a majority of votes. In the case of an equality of votes, the Chair of the Fund Committee will have the casting vote. A resolution of the Fund Committee may be passed without a meeting if each of the members of the Fund Committee

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1 "Entity" means a corporation, partnership, trust, joint venture, unincorporated organization or other legal entity.

consents to such resolution in writing and such consent resolution in writing will be considered valid in the same manner as if the resolution was duly passed at a meeting of the Fund Committee.

F. Payments from Special Compensation Fund

1. Circumstances Giving Rise to Fund Payments

A Customer will advise ICBC that their insured vehicle requires repairs (“Repair Request”) with respect to either defective or sub-standard workmanship performed, or defective or sub-standard parts which were used, in the course of the insured vehicle being originally repaired by an Accredited Repair Shop for repairs that were then covered by insurance (the “original repairs”).

If the Accreditation Manager determines that the original repairs were completed by an Accredited Repair Shop which has become insolvent and/or which has ceased to operate or carry on business, the Accreditation Manager will consider the circumstances of each case and will determine, on a case by case basis and in accordance with any applicable ICBC Procedures, whether or not ICBC will pay and cover any or all costs associated with ensuring the repair of the Customer’s vehicle in connection with honouring the Lifetime Guarantee provided by the defunct Accredited Repair Shop with respect to the original repairs (collectively, “Repair Costs”).

2. Conditions for Fund Payments from Special Compensation Fund

The Accreditation Manager may pay Repair Costs detailed in an Estimate (as defined below) out of the Fund by way of a Fund Payment only if the Accreditation Manager is satisfied that:

(a) an insured vehicle was originally repaired by an Accredited Repair Shop for the original repairs in favour of the owner of the insured vehicle (the “original owner”);

(b) the Accredited Repair Shop that performed the original repairs has since the time of the original repairs, ceased to operate or carry on business, and the original owner still owns the insured vehicle; and

(c) the repairs required with respect to the original owner’s insured vehicle in order to repair or remedy any defective or sub-standard workmanship performed or any defective or sub-standard parts that were used in the course of the original repairs fall within the scope of the Lifetime Guarantee provided by the defunct Accredited Repair Shop with respect to such original repairs.

3. Limitations Regarding Fund Payments from Special Compensation Fund

The Accreditation Manager must not pay the Repair Costs to an Accredited Repair Shop out of the Fund by way of a Fund Payment in respect of a Repair Request:

(a) that is made by someone other than the original owner of the vehicle subject to the Repair Request;

(b) that relates to a vehicle, the original owner of which is an individual or relative of an individual who owned, or who had any ownership interest in the Entity which owned, the now defunct Accredited Repair Shop which performed the original repairs; or

(c) that relates to a vehicle which is no longer insured.

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4. Procedures Related to Fund Payments

(a) Review of Repair Request and Producing Estimate

If the Accreditation Manager reviews a Repair Request taking into consideration any conditions and limitations listed above, decides to approve such Repair Request (in whole or in part) and therefore determines that the Fund will pay any or all Repair Costs with respect to a Customer’s vehicle covered by a Lifetime Guarantee, the Accreditation Manager will ensure that an estimate and/or invoice (each an “Estimate”) is produced with respect to such Repair Request in compliance with the ICBC Procedures.

(b) Repairs and Discretion of Accreditation Manager Regarding Fund Payments

The Accreditation Manager will then arrange to have the repairs to the Customer’s vehicle completed by a qualified Accredited Repair Shop either selected by the Customer or retained by ICBC on behalf of the Customer (as applicable). Subject to the conditions and limitations set out in paragraphs F(2) and F(3) above, the Accreditation Manager has the complete discretion, with respect to making a Fund Payment to the applicable Accredited Repair Shop in respect of covering Repair Costs in respect of a Repair Request, to:

(i) make full or partial payment from the Fund, subject to the terms he/she considers appropriate; or

(ii) make no payment from the Fund.

The Accreditation Manager does not require prior approval from the Fund Committee in order to review, document and approve a Repair Request for Repair Costs, in order to produce an Estimate, or in order to make a Fund Payment, provided that the Accreditation Manager’s decisions and actions are made and carried out in compliance with the ICBC Procedures.

(c) Report by Accreditation Manager to Fund Committee

After repairs to a Customer’s vehicle are completed, the Accreditation Manager will periodically report to the Fund Committee with respect to Repair Requests which resulted in the payment of Repair Costs from the Fund by way of a Fund Payment.

With respect to each such Repair Request, the Accreditation Manager will provide the Fund Committee with all relevant and pertinent particulars, information, documentation and details regarding the Repair Request and the related Estimate, Repair Costs and Fund Payment in order that the Fund Committee is able to complete its duty and responsibility to produce and publish the Reports in the form described in Part G, and in order that the Fund Committee may otherwise carry out the duties, powers and responsibilities in connection with the Fund. The Accreditation Manager must also provide the Fund Committee with any other information, records, document or evidence relating to a specific Repair Request (and the related Estimate, Repair Costs or Fund Payment) which the Fund Committee may reasonably request in order to produce and publish the Reports.

(d) Report by Accreditation Manager subject to FOIPPA

The Fund Committee must be aware that ICBC is a “public body” (as such term is defined in the Freedom of Information and Protection of Privacy Act (British Columbia), as amended from time to time (“FOIPPA”)), and therefore must abide by and comply with the terms of FOIPPA, including without

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limitation, provisions regarding the collection, storage, access, use, protection and disclosure of “personal information” (as such term is defined in the FOIPPA).

As such, any information, records, documents, evidence or details provided by the Accreditation Manager and/or ICBC to the Fund Committee in order for the Fund Committee to produce and publish the Reports and to otherwise carry out the duties, powers and responsibilities in connection with the Fund, including without limitation copies of documents related to Repair Requests, copies of Estimates, copies of any receipts or other documents produced by an Accredited Repair Shop in relation to completing repairs, shall be amended accordingly by the Accreditation Manager and/or ICBC so as to not contain any “personal information” (as such term is defined in FOIPPA).

(e) Disputed Repair Request, Estimate or Fund Payment

If any member of the Fund Committee raises any questions, concerns or complaints with respect to the manner in which the Accreditation Manager and/or ICBC has reviewed, approved or documented a Repair Request, produced an Estimate, implemented a Fund Payment, or a member of the Fund Committee questions whether the Accreditation Manager and/or ICBC has made decisions and carried out actions in accordance and compliance with the ICBC Procedures, such member of the Fund Committee may raise and discuss such questions, concerns or complaints with the Controller.

The Controller will review and consider the matter in question and any related actions and/or decisions made by the Accreditation Manager and/or ICBC, and will make a determination which will be final and conclusive. Depending on the circumstances of each case, the Controller will have the ability, as part of his or her final determination, to direct ICBC to reimburse the Fund for an amount as determined by the Controller.

5. Payment of Administration Costs from Special Compensation Fund

All costs of administering the Fund (if any), including but not limited to any costs incurred in connection with the Accreditation Manager reviewing, documenting and approving Repair Requests and determining whether ICBC will pay any or all Repair Costs in connection with a Repair Request from the Fund, shall be paid from the Fund.

6. Money Recovered Belongs to Special Compensation Fund

If money is paid from the Fund by way of Fund Payments in respect of Repair Costs, ICBC must pay to the Fund any money, or the value of any other thing, received by ICBC from any other source on account of the loss that gave rise to the Fund Payments, up to the amount paid from the Fund by way of Fund Payments.

G. Reporting Requirements

It is intended that the Fund Committee will produce and publish bi-annual reports in respect of the Fund for the preceding six (6) month period (the “Reports”), and deliver such reports to all of the Accredited Repair Shops participating in the c.a.r. shop Program, the Automotive Retailers Association and the New Car Dealers Association of B.C. within 45 days after the end of each 6 month period. As stated in Part F above, the Accreditation Manager will be responsible for providing any and all relevant and pertinent particulars, information, documentation and details regarding Repair Requests and related Estimates,

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Repair Costs and Fund Payments in order that the Fund Committee is able to produce and publish the Reports. Each Report will include the following information:

(a) the amount owing to the Fund by any Accredited Repair Shop at the end of the period;

(b) the total amount of money in the Fund at the end of the period;

(c) the total amount of money received by the Fund in the period;

(d) the total amount of money paid from the Fund in the period;

(e) a statement of all Fund Payments paid in the period;

(f) a statement of changes to the capital of the Fund; and

(g) a statement of the assets and liabilities of the Fund at the end of the period.

H. Winding-Up of Special Compensation Fund

If the c.a.r. shop Program ceases to operate for any reason, or the Controller, in his or her sole discretion, determines that the Fund is no longer necessary for the Fund Purpose, the Fund Committee shall determine how the Fund will be wound-up as well as how any remaining funds comprising the Fund (if any) shall be dispersed or otherwise dealt with in connection with such wind-up.

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CSP1 (012015)

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