View source for Introduction to ICBC's Autoplan Insurance System (Prior System) (12:VIII)

{{REVIEWED LSLAP | date= August 6, 2024}}
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'''This section applies only to claims for accidents that occurred on or before April 30, 2021.'''

For accidents that occurred on or before April 30, 2021, the two-year limitation date, within which an action could be started, has now passed. This means that '''new claims cannot be started for accidents that occurred after that date'''. However, the following information is applicable to ongoing actions for accidents that occurred prior to April 30, 2021.

== A. General ==

The automobile insurance system in BC is comprised of “no-fault” benefits and indemnification for claims in tort law.  

No-fault benefits are included as part of the compulsory basic insurance coverage offered exclusively by ICBC and are paid to the insured regardless of fault. Extended coverage may be purchased from either ICBC or a private insurer under an optional insurance contract (“OIC”). 

Claims for damages (under tort law) through the court system, 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 various parties liable for the injury. There is no legislative limitation on the amount of damages that a court could award; however, case law and statute may limit certain heads of damage. 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.
 
Determining whether a case can be commenced in BC and if the law of BC applies is crucial. For cases involving a BC resident who has been involved in an out-of-province accident, private international law rules will govern the action. Generally, for substantive issues, the laws of the jurisdiction where the accident took place apply. For procedural matters, the rules of the trial court apply.

The ''IVA'' and the ''IVR'' form a code governing most aspects of auto insurance in BC. This chapter is not meant to be a comprehensive summary of the ''IVA'' or ''IVR'' but rather is 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.

=== 1. Indemnification ===

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, “indemnifies” the insured.

=== 2. Subrogation ===

Subrogation 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 themselves (''IVA'', s 83).

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