A move by the B.C. government to eliminate a rule that makes it mandatory for industrial equipment, such as scissor lifts, small tractors and other industrial utility vehicles to be registered, licensed and insured by ICBC, as well as carry individual regular third-party liability insurance, will save equipment rental companies and some non-profit groups thousands of dollars per year, says the past president of the B.C. Local Canadian Rental Association.
Jim Clipperton said the government’s move means businesses like his—he operates NorVal Rentals, which has operations in Lake Country, Vernon and Armstrong—will save because they will not have to insure every vehicle that carries a person, a load or is used in a public place twice from now on.
“As well as being expensive, it was a huge, huge paperwork nightmare,” he said.
He said he expects the change will save him about $34,000 per year and said some larger rental outfits, such as Winn Rentals in Kelowna, where the announcement was made, as much as $100,000 per year.
Clipperton said while the double insurance rule has been in place for many years, it is only within the last four to five years that it has been actively enforced.
With a growing number of tickets being issues to companies for not complying with the double insurance rule, the rental association has been calling on the government to make the change.
Okanagan-Lake Country MLA Norm Letnick, who made the announcement Thursday on behalf of Attorney General Shirley Bond, said he and his fellow Central Okanagan MLAs Steve Thomson (Kelowna-Mission) and Ben Stewart (Westside-Kelowna) started working on getting the change made after a local businessman approached them with concerns about the rule.
Until yesterday, industrial equipment like small earth movers, scissor lifts, trailers, golf cart beverage carts used at golf courses and other mobile equipment used on job sites had to be insured for when it was kept indoors and carry ICBC insurance for when they were used on a “public road.” Clipperton said the definition of a public road, according to ICBC officials, included parking lots that are open to the public.
Letnick called the double insurance requirement “red tape,” something the Liberals government wants to route out in order to help businesses thrive in today’s tough economic times.
But he stressed there will still be a requirement that third-party liability insurance.
“We want to stress that we’re not compromising on safety with this move,” he said.
The move was applauded by Clipperton and others, including the head of the Shriners service club in B.C.
Shriners B.C. executive director Kim Harrison, who was also in Kelowna for the announcement, said he expects it will save his organization about $35,000 per year, money that can will go to help sick children instead of paying for extra insurance and licencing.
The Shriners are well-known for their participation in parades and other events across North America, often driving small scooters, motorized go-carts and other miniature vehicles. Up to now, each of those small vehicles had to be insured twice.
The Shriners raise hundreds of thousands of dollars every year for causes like sick and burned children.
awaters@kelownacapnews.com
