Difference between revisions of "Introduction to ICBC Automobile Insurance (12:I)"

The automobile insurance system in BC is comprised of “no fault” benefit claims and indemnification for claims in tort law. No fault benefits  are included as part of the basic (compulsory) insurance coverage offered by the Insurance Corporation of British Columbia (ICBC or “the  Corporation”) exclusively. As the name implies, payment of the no fault coverage is given regardless of whether or notany element of fault is attributed to the insured. Optional coverage above and beyond the basic coverage may be purchased from either ICBC or a private insurer under an optional insurance contract (“OIC”).   

Claims for damages brought under tort law however do require the presence of a fault element on the part of the defendant to be successful. The victim of the accident (e.g. a personal injury claimant) may sue the other driver(s), the owner(s) of the insured car, manufacturer(s), automobile shop(s), municipal, insurer(s), or any other parties liable for the injury. Legislatively, there is no limitation on the maximum amount of damages that a court could award to a victim. However, case law and statute in the province may effectively cap certain heads of damage, such as non-pecuniary damages. Where the necessary conditions are met, ICBC may indemnify the insured for all or part of the assessed liability. This means that where damages are awarded to a victim in an accident, ICBC will pay those damages instead of the party (i.e. the insured) who is at fault.  

For cases involving a BC resident who has been involved in an out-of-province accident, private international law rules apply. Generally, for the substantive issues, the law of the jurisdiction where the accident took place will apply. For procedural matters, the rules of the trial court will apply. It is important to determine whether the action is one that can be commenced in BC and whether the law of BC applies. A summary of out-of-province insurer qualifications, service procedures, and jurisdictional considerations is listed in '''[[ICBC Claims and Out-of-Province Insurers or Accidents (12:VI) | Section VI]]'''.  

The ''Insurance (Vehicle) Act'' [IVA] and the ''Insurance (Vehicle) Regulation'' [IVR] form a code governing most aspects of auto insurance in BC. The IVR alone runs 102 pages, and it is impossible to give a complete summary in a manual such as this. This chapter is only a guide to help people locate the relevant sections of the IVA and IVR that they are likely to encounter. A few preliminary concepts, which will be of use in understanding this chapter, are discussed immediately below.  

Drivers purchase car insurance to protect themselves in the event that they are found liable for damages. If the necessary preconditions are met, ICBC assumes liability for payment of benefits or damages to the claimant or victim of a car accident. Instead of the insured paying the damages claimed, the insurance company, here ICBC, “indemnifies” the insured.

This is a common feature of insurance contracts. When ICBC assumes liability for payment of benefits or damages of any kind on behalf of the insured, ICBC is ‘subrogated’ to the right of recovery that the insured had against any other person (IVA, s 84), i.e., ICBC has all remedies available to it that the insured person might have exercised by him or herself (IVA, s 83).  

Premiums are regular payments made by the insured to ICBC Premiums are based on: where the insured lives, how the vehicle is used, the type of vehicle, and the insured driver’s claim record. Customers can vary their premiums by increasing or decreasing their deductibles, as well as the extent of their optional coverage. Experienced drivers may receive discounts up to 43 percent on insurance plans. There is an informal discount review body created by corporate policy to ensure that discounts are appropriately awarded, but this body was not created for the purposes of hearing formal appeals.  

The point penalty system is authorized by ss 210 and 211 of the MVA. Section 28.02 of the MVA Regulations outlines the various breaches and/or offences of the MVA and the corresponding point penalties recorded. The number of points, beyond the set  limits, that accumulated during the first year is taken into account when fixing premiums.  

Section 85 of the ''IVA'' allows ICBC to either generally, or for a particular case, waive a term or condition of an insurance contract (also known as “the plan”). However, in order for a term or condition to be waived, the waiver must be in writing '''and''' signed by an ICBC officer.