AP 411

Use of Personal Vehicles for Business

Background

Employees who are authorized to use their personal vehicles for school district business will be compensated for said usage. Employees may be required to extend their personal insurance coverage to business coverage.

Procedures

1. The Abbotsford School District will comply with the Insurance Corporation of British Columbia (ICBC) Guidelines which state that all employees whose job description requires them to travel must have Business Insurance.

2. Employees who use their personal vehicle for school district business should consult ICBC for guidelines regarding their required levels of insurance as it relates to the business use of their personal vehicles. It is the employee’s responsibility to ensure their insurance is upgraded as required.

3. Abbotsford School District employees are eligible to claim for the added cost of business insurance, if they travel more than six (6) days per month on school district business. Any reimbursement will be limited to the difference between what the employee would normally pay for insurance and the upgrade to business.

4. Employees who are required to have business insurance will be reimbursed a portion, or all, of the additional cost based on the following:

  • Application must be made to the Secretary-Treasurer or designate not later than 30 days after the employee secures an insurance premium based on using his/her vehicle for business use.
  • The amount of the allowance will be equivalent to the excess cost of the business insurance (difference between business rate and rate for driving to and from work).
  • The Abbotsford School District will not reimburse the premium increase if the employee wishes to increase their PL/PD to more than $1,000,000, or for secondary drivers with less than ten (10) years’ experience.
  • A maximum of $200 per annum will be paid.
  • The claim must be certified by an insurance agent, and the amount claimed must be identified separately.
  • If the employee leaves the employment of the school district during the year, costs may be recovered on a pro-rated basis.

5. Procedure application form AP 411-1 Insurance Upgrade to Business must be used to apply for reimbursement of business insurance costs.

6. All payments made under this admin procedure are considered to be taxable benefits and will be included in the employee’s annual T4, as required by the Canada Revenue Agency.

Appendix

AP 411-1 Insurance Upgrade to Business

(Last Revised: July 2017)

 

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