Full Reciprocity Plan set to change International Registration Plan effective January 1, 2015
As of January 1, 2015, the International Registration Plan (IRP) will incorporate the Full Reciprocity Plan (FRP). The IRP is a registration reciprocity agreement among US states and Canadian provinces that provides payment of apportionable fees on the basis of total distance operated in all jurisdictions (in BC, this is handled by ICBC Prorate Licensing). The purpose of the FRP is to make the IRP more efficient, equitable, and flexible for member jurisdictions and registrants by granting full reciprocity for all apportioned vehicles in all member IRP jurisdictions, and by removing any provisions related to estimated distance.
Benefits of the FRP
- Cab cards will display all 59 IRP jurisdictions; full reciprocity will be granted to IRP vehicles.
- Carriers no longer have to decide which jurisdictions they will travel in when establishing or renewing IRP fleets.
- Carriers no longer need to provide any estimated distances.
- Carriers no longer need to add jurisdictions.
- Elimination of fees over 100% due to added jurisdictions and second-year estimates.
- Carriers no longer need to purchase trip permits for temporary travel into a jurisdiction, so long as they are IRP registered and properly insured.
- Carriers no longer need to set up multiple fleets, each travelling in a different set of jurisdictions with different distances; however, multiple fleets per carrier will still be allowed under FRP.
How will the FRP work?
- New IRP fleets effective on or after January 1, 2015: will use the base jurisdiction’s average per vehicle distance (APVD)* chart for all 59 jurisdictions and pay the proportionate amount of fees for each of those jurisdictions in order to establish the IRP fleet. FRP removes the option for the carrier to provide estimated distances.
- Existing IRP fleets (with actual distances) renewing on or after January 1, 2015: will report the actual distances operated during the distance reporting period and pay fees based only upon those distances as they do today. However, the renewal cab card will reflect all 59 jurisdictions.
- Existing IRP fleets (with no actual distances) renewing on or after January 1, 2015: will be treated as a “new” IRP fleet and pay fees based on the APVD chart.
- Existing or new IRP fleets with a registration year beginning prior to January 1, 2015: will be subject to provisions of the current plan until they renew in 2015 – cab cards will only display those jurisdictions specifically requested.
For more information about the FRP, you can review the FRP Q&A document published by the IRP, or speak with your HUB International TRANSPORTATION specialist.
Source: Important Change to IRP Effective January 1, 2015 published by the Insurance Corporatation of British Columbia (August 27, 2014).
* The APVD distance for each member jurisdiction is calculated by a) determining the total actual distance travelled in the jurisdiction by all BC-based apportioned vehicles during the previous registration year, b) determining the total number of BC-based apportioned vehicles that travelled in the jurisdiction during the previous registration year, and c) dividing A by B.
Tia Chisholm, HUB International TRANSPORTATION
HUB International TRANSPORTATION specialists are based in Vancouver. Our longstanding relationships with the best providers in the business allow us to deliver the solution that serve you best. With HUB, you can run your business knowing that you are headed in the right direction.