ICBC and Basic Compulsory Autoplan Coverage (12:X): Difference between revisions

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{{REVIEWED LSLAP | date= August 6, 2024}}
{{LSLAP Manual TOC|expanded = ICBC}}
{{LSLAP Manual TOC|expanded = ICBC}}
{{LSLAP 12 Old System Notice}}


The IVA makes ICBC the sole provider of basic insurance for non-exempt vehicles in BC Exempt vehicles are described in ss 43 – 44 of the IVA and also in s 2 of the IVR. For most vehicles owned, leased or operated in BC, third party liability coverage up to $200,000 is only available from ICBC. Full coverage for exempt vehicles, extended coverage in excess of the basic coverage (third party liability insurance over $200,000, IVR, s 67), and collision (“own damage”) insurance may be purchased from either ICBC or from private insurers. See [[Optional ICBC Insurance (12:III) | Section III: Optional Insurance]]. Note that private insurers may have their own requirement for coverage that may be above and beyond the requirements of ICBC.
ICBC is the sole provider of basic insurance for non-exempt vehicles in BC.  Exempt vehicles are described in sections 43–44 of the ''IVA'' and also in section 2 of the ''IVR''. For most vehicles owned, leased, or operated in BC, third-party liability coverage up to $200,000 is only available from ICBC. Full coverage for exempt vehicles, extended coverage in excess of the basic coverage (third party liability insurance over $200,000, ''IVR'', s 67), and collision (“own damage”) insurance may be purchased from either ICBC or from private insurers. Private insurers may have their own requirement for coverage that may be above and beyond the requirements of ICBC


Vehicles licensed in BC are required by law to carry basic compulsory coverage, which is evidenced by a certificate of automobile insurance issued under the IVA to someone licensed under the MVA (i.e. the “insured”).
Vehicles licensed in BC must carry basic compulsory coverage, evidenced by a certificate of automobile insurance issued under the ''IVA'' to someone licensed under the ''MVA'' (i.e., the “insured”).  


'''NOTE:''' The definition of “the insured” varies somewhat from section to section in the IVA and IVR.  
'''NOTE''': The definition of “the insured” varies somewhat from section to section in the ''IVA'' and ''IVR''.


Driving while uninsured is an offence (MVA, s 24(3)(a)) which carries a maximum penalty of a fine of up to $250 and/or imprisonment of up to three months (MVA, s 24(5)(a)). Driving an uninsured vehicle is also an offence (MVA, s 24(3)(b)) which carries a fine of at least $300 and no more than $2,000 and/or imprisonment for at least seven days and no more than six months (MVA, s 24(5)(b)).
Driving while uninsured is an offence (''MVA'', s 24(3)(a)) which carries a maximum penalty of a fine of up to $250 and/or imprisonment of up to three months (''MVA'', s 24(5)(a)). Driving an uninsured vehicle is also an offence (''MVA'', s 24(3)(b)) which carries a fine of at least $300 and no more than $2,000 and/or imprisonment for at least seven days and no more than six months (''MVA'', s 24(5)(b)).


== A. Scope of Coverage ==
== A. Scope of Coverage ==


Subject to various limitations and exclusions, basic compulsory coverage is set out in the IVR and provides the insured with:  
Subject to various limitations and exclusions, basic compulsory coverage is set out in the ''IVR'' and provides the insured with:
*indemnity for third party legal liability (Part 6);  
* Indemnity for third party legal liability (Part 6);  
*accident benefits; no-fault benefits payable for death or injury (Part 7);  
* Accident benefits; no-fault benefits payable for death or injury (Part 7);  
*coverage for damages caused by uninsured or unidentified motorists (Part 8);  
* Coverage for damages caused by uninsured or unidentified motorists (Part 8);  
*first party coverage (Part 10);
* First party coverage (Part 10). This includes:
*inverse liability (Division 1 of Part 10); and  
:* Inverse liability (Division 1 of Part 10); and  
*underinsured motorist protection (UMP) (Division 2 of Part 10).  
:* Underinsured motorist protection (UMP) (Division 2 of Part 10).


== B. Third Party Legal Liability: Part 6 of the IVR ==
== B. Third Party Legal Liability: Part 6 of the IVR ==
Line 23: Line 25:
=== 1. Indemnity ===
=== 1. Indemnity ===


This insurance indemnifies the insured against liability imposed on the insured by law for the injury or death of another, and/or loss or damage to another’s property, to a total limit of $200,000 (IVR, s 67), to be shared among the victims of a motor vehicle accident (Schedule 3, s 1). The base limit of liability is $500,000 in claims made for a bus, and $300,000 in claims made for a taxi or limousine. Extended Third Party Legal Liability coverage may be purchased at the insured’s discretion. (See [[Optional ICBC Insurance (12:III) | Section III: Optional Insurance]]). '''If the insured is found legally liable, and no extended coverage has been purchased, he or she is responsible for payment of any claims in excess of the above limits'''.
This insurance indemnifies the insured against liability for the injury or death of another, and/or loss or damage to another’s property, up to $200,000 (''IVR'', s 67), to be shared among the victims of a motor vehicle accident (Schedule 3, s 1). The base limit of liability is $500,000 for buses and $300,000 for taxis or limousines. Extended Third Party Legal Liability coverage may be purchased. '''If the insured is found legally liable, and has no extended coverage, they are responsible for payment of any claims in excess of the above limits'''.
 
As of September 16, 2019, ICBC offers a new insurance category (blanket insurance certificate) for transportation network services (TNS) or ride-hailing companies. It provides coverage up to $1,000,000 third party liability when the vehicle is a) hailed by passengers through the online platform and b) is operated to transport the passengers (''IVR'', s 154). This blanket coverage is mandatory for ride-hailing companies, not for individual drivers.


=== 2. Who is Covered ===
=== 2. Who is Covered ===


The definitions of “insured” for this part of the IVR may be found in IVR, s 63. For our purposes, the most relevant definitions of “insured” are:  
The definitions of “insured” for this part of the ''IVR'' may be found in ''IVR'', s 63. For our purposes, the most relevant definitions of “insured” are:  
*a) a person named in an owner’ s certificate; or
 
*b) an individual who operates the vehicle described in the owner’s certificate with the consent of the owner; or
:(a) A person named as an owner in an owner's certificate;
*c) an individual who operates the vehicle described in the owner’s certificate while being a member of the owner’s household.  
:(b) An individual who, with the consent of the owner or while a member of the owner's household, uses or operates the vehicle described in the owner’s certificate;
:(c) Where the owner is deceased, the personal representative of the owner or a person having, with the consent of the personal representative, custody of the vehicle until the grant of letters probate or of administration to the personal representative; and
:(d) Where the owner is not an individual:
::(i) An officer, employee, or partner of the owner for whose regular use the vehicle described in the owner's certificate is provided; or
::(ii) A member of the household of an officer, employee, or partner of the owner, who, with the consent of the owner, uses or operates the vehicle described in the owner's certificate.


=== 3. Extension of Indemnity ===
=== 3. Extension of Indemnity ===


According to IVR, s 65, indemnity is extended to an insured who operates a motor vehicle not described in an owner’s certificate issued to the insured (i.e. someone else’s car). For the purposes of s 65 only, “insured” includes the following:  
According to ''IVR'', s 65, indemnity is extended to an insured who operates a motor vehicle not described in an owner’s certificate issued to the insured (i.e., someone else’s car). For the purposes of s 65 only, “insured” includes the following:
*a) a person named as an owner in an owner’s certificate;  
*b) a member of the owner’s household;
:(a) A person named as an owner in an owner’s certificate;
*c) an employee or partner of the owner, where their regular use of the vehicle described in the owner’s certificate is provided for; and  
:(b) A member of the owner’s household;
*d) the spouse of an employee or partner described in paragraph (c) where the spouse resides with the employee or partner.  
:(c) An employee or partner of the owner for whose, regular use the vehicle described in the owner’s certificate is provided; and
:(d) The spouse of an employee or partner described in paragraph (c) where the spouse resides with the employee or partner.
 
As of September 1, 2019, ICBC requires drivers to list out all the household members who may drive their vehicles, regardless of the number of times they may drive it, and non-household members who may drive the insured’s vehicle more than 12 times a year. The additional drivers are factored into the premium calculation.
 
See [https://www.icbc.com/insurance/costs/drivers-experience-crash-history ICBC's webpage on who should be listed as a driver] for more information.


Note that, absent this expanded definition, “insured” would not otherwise cover a member of the insured’s household operating a vehicle not described in an owner’s certificate issued to the insured.  
If an unlisted driver is in an accident, ICBC can impose a financial penalty on the principal’s policy and a higher premium rate when the principal renews the policy in the future.


=== 4. Restrictions on Indemnity ===
=== 4. Restrictions on Indemnity ===


Section 65(2) of the IVR states that if an insured is operating a motor vehicle that is not described in an owner’s certificate issued to him  or her, indemnity is not extended to the insured if:  
Section 65(2) of the ''IVR'' states that if an insured is operating a motor vehicle that is not described in an owner’s certificate issued to them, indemnity is not extended to the insured if:
*the insured is operating the motor vehicle in connection with the business of a garage service operator;  
* The vehicle is operated in connection with the business of a garage service operator;
*the motor vehicle is owned or regularly operated by the insured;  
* The motor vehicle is owned or regularly operated by the insured;
*the motor vehicle is used for carrying passengers for compensation or hire or for commercial use;
* The motor vehicle is for commercial use.
*the motor vehicle is in fact not licensed under the MVA (or similar legislation) and the insured does not have reasonable grounds to believe the motor vehicle is licensed; or 
*the insured is operating the vehicle without the consent of the owner and does not have reasonable grounds to believe that he has the consent of the owner.


Section 77 provides, in part, that an owner seeking to rely on the coverage provided for a vehicle not named in the owner's certificate cannot do so if he or she also owns (or leases) the non-described vehicle that has been involved in the accident (i.e. you cannot just insure one vehicle and expect this to cover all of the other vehicles in your fleet).
For a TNS-only vehicle operated under a transportation network services authorization, the corporation's exemption applies only if injury or death of another, or loss or damage to property of another, arises out of the operation of the TNS-only vehicle when:
:(a) The vehicle has been hailed by or for passengers through the use of the online platform to which the transportation network services authorization relates; and
:(b) The insured is operating the vehicle for the purposes of picking up, transporting or dropping off those passengers;
:(c) The motor vehicle is in fact not licensed under the MVA (or similar legislation) and the insured does not have reasonable grounds to believe the motor vehicle is licensed; or
:(d) The insured is operating the vehicle without the consent of the owner and does not have reasonable grounds to believe that they have the consent of the owner.  


Neither garage service operators nor their employees are covered by the owner’s certificate issued for customers’ vehicles while the vehicle is in the care, custody, or control of the garage service operator or his or her employee for a purpose relating to the business. “Garage service operator” is defined in Part 1 of the IVR as “the operator of a motor vehicle service facility and includes a dealer, service station operator, motor vehicle repairman, auto body shop repairman, wrecker operator, and the operator of a vehicle parking or storage facility” (s 57). To offset the effect of s 57, the garage service operator must obtain special coverage pursuant to s 150.  
Section 77 provides that an owner seeking to rely on the coverage provided for a vehicle not named in the owner’s certificate cannot do so if they also own (or lease) the non-described vehicle that has been involved in the accident (i.e. you cannot just insure one vehicle and expect this to cover all of the other vehicles in your fleet).
 
Garage service operators and their employees are '''not''' covered by the owner’s certificate issued for customers’ vehicles while the vehicle is in their care, custody, or control. “Garage service operator” is defined in Part 1 of the ''IVR'' as “the operator of a motor vehicle service facility and includes a dealer, service station operator, motor vehicle repairman, auto body shop repairman, wrecker operator, and the operator of a vehicle parking or storage facility” (s 57). To offset the effect of s 57, the garage service operator must obtain special coverage pursuant to s 150.


=== 5. What is Covered ===
=== 5. What is Covered ===


In addition to the legal liability coverage (i.e. s 65 indemnification) outlined above, IVR ss 67 and 69 states that ICBC may also pay for:  
In addition to the legal liability coverage outlined above, ''IVR'' s 67 and 69 states that ICBC may also pay for:
*a) “reasonable” emergency medical aid, so long as reimbursement is not provided to the insured by another insurer or under another Part;  
:(a) Reimbursement an insured for reasonable payments for emergency medical aid necessary to a person injured as the result of an accident for which indemnity is payable under this Part, if reimbursement is not provided to the insured under another Part or by another insurer;
*b) emergency equipment or supplies provided to the insured (i.e. fire extinguishers, jacks or other necessary emergency equipment or supplies);
:(b) Costs incurred for fire extinguishers, jacks or other necessary emergency equipment or supplies provided to the insured;
*c) all or some (depending upon the circumstances) of the costs taxed against the insured in an action, in accordance with the British  Columbia Supreme Court Rules, BC Reg 221/90 for aggregated general and specific damages; and
:(c) Pay that proportion of the costs taxed against an insured in an action respecting a claim under this Part that,
*d) the pre-judgment interest under the ''Court Order Interest Act'', RSBC 1996, c 79 or analogous legislation of another jurisdiction on that part of the judgment, and pay post-judgment interest under the ''Interest Act'', RSC 1985, c I-15 or analogous legislation of another jurisdiction on that part of the judgment, both within the limits set out in s 1 of Schedule 3 (IVR).
::(1) The amount offered by the corporation as its total liability for indemnity to the insured under this Part in an offer to settle served in accordance with the Supreme Court Civil Rules bears to
::(2) The aggregate of all special and general damages awarded in respect of the occurrence for which the claim is made;
:(d) Pay
::(1) Prejudgment interest under the Court Order Interest Act or similar legislation of another jurisdiction; and
::(2) Post-judgment interest under the Interest Act (Canada) or similar legislation of another jurisdiction on that part of the judgment that is within the applicable limit set out in section 1 of Schedule 3; and
:(e) If indemnity is provided to the insured under this Part and by one or more optional insurance contracts provided by an insurer other than the corporation, contribute to the payment of expenses, costs and reimbursements for which provision is made under section 172 in accordance with that other insurer's and the corporation's respective liabilities for,
::(1) Damages awarded against the insured; or
::(2) The amount payable under a settlement made on behalf of the insured.


=== 6. What is Not Covered ===
=== 6. What is Not Covered ===


ICBC will not indemnify an insured for certain types of damage, including:  
ICBC will ''not'' indemnify an insured for:
*loss or damage to property carried in or on a vehicle owned, rented or in the care, custody or control of an insured (s 72.1); or  
* Loss or damage to property carried in or on a vehicle owned, rented or in the care, custody or control of an insured (s 72.1); or
*liability directly or indirectly arising out of the operation of attached equipment i.e. machinery or equipment that is mounted on or attached to the vehicle, and which is not required for the safe operation of that vehicle) at a site where such equipment is operated, unless the attached equipment is used in accordance with the IVR (s 72(2)); or  
* Liability arising out of the operation of attached equipment (which is not required for the safe operation of that vehicle) at a site where such equipment is operated, unless the attached equipment is used in accordance with the ''IVR'' (s 72(2)); or
*under Part 4, 6, 7, or 10 in respect of injury, death, loss or damage arising out of radioactive, toxic, explosive or other hazardous properties of prescribed substances under the ''Atomic Entergy Contract Act'' (IVR, s 56(1)(a)); or
* Under Part 4, 6, 7, or 10 in respect of injury, death, loss or damage arising, directly or indirectly, out of radioactive, toxic, explosive or other hazardous properties of nuclear substances within the meaning of the ''Nuclear Safety and Control Act'' (Canada), s 56(1)(a)); or  
*under IVA, s 20 (uninsured vehicles), s 24 (hit and run accidents), s 49.3 (default of premiums), Part 7 or Part 10 in respect of any injury, death, loss or damage arising, directly or indirectly out of a declared or undeclared war or insurrection, rebellion or revolution (IVR, s 56(1)(b))  
* Under sections 20 or 24 of the Act or section 49.3, Part 7 or Part 10 of the ''IVR'' in respect of any injury, death, loss or damage arising, directly or indirectly out of a declared or undeclared war or insurrection, rebellion or revolution (''IVR'', s 56(1)(b)); or
*under IVA, s 20, s 24, s 49, s 49.3(1)(b), Part 6 or Part 10 in respect of punitive or exemplary damages or other similar non-compensatory damages (IVR, s 56(1)(c)).
* Under ''IVA'', ss 20 or s 24, under ''IVR'', ss 49 or 49.3(1)(b), Part 6 or Part 10 in respect of punitive or exemplary damages or other similar non-compensatory damages (''IVR'', s 56(1)(c)); or
*a general or special assessment, penalty or premium, payable under the ''Workers’ Compensation Act'' or similar Act (IVR, s 72.1(1)(a)).  
* Assessments, penalties or premiums, payable under the ''Workers’ Compensation Act'' (British Columbia) or similar Act (''IVR'', s 72.1(1)(a)).


=== 7. Duties of the Insured ===
=== 7. Duties of the Insured ===


An insured has a duty to report to ICBC mid-term changes, as required by s 9 of the IVR. These changes may result in an increase or decrease in the premiums paid to ICBC. The insured named in the owner’s certificate is obligated to report to an ICBC agent the following:
An insured has a duty to report to ICBC mid-term changes, as required by s 9 of the ''IVR''. These changes may result in an increase or decrease in the premiums paid to ICBC. The insured named in the owner’s certificate is obligated to report to an ICBC agent the following:  
*a) any change in the insured’s address within 10 days '''after''' the change;
 
*b) any acquisition of a substitute vehicle for the vehicle described in the certificate within 10 days '''after''' the acquisition;
:'''9'''
*c) any anticipated change in the use of the vehicle described in the certificate to a use to which a different insurance rate applies '''before''' such a change; 
::(1) In this section, "the territory in which the vehicle is primarily located when not in use" means the territory in which the place where the vehicle is kept when not being driven is located.
*d) any anticipated change in the territory in which the vehicle described in the certificate is principally used '''before''' such a change; and/or
::(2) The insured named on an owner's certificate must,
*e) any change in the location of where the insured vehicle is primarily located when not in use, within 30 days of the change, '''if''' the premium for the vehicle is established on the basis of this location, '''unless''' the vehicle is used for vacation purposes.
:::(a) within 10 days after
::::(i) the insured's address is changed from the address set out in the certificate, or
::::(ii) the insured acquires a substitute vehicle for the vehicle described in the certificate, or
:::(b) before
::::(i) the use of the vehicle described in the certificate is changed to a use to which a different vehicle rate class applies than the vehicle rate class applicable to the use set out in the certificate, or
::::(ii) a vehicle in respect of which the premium is established on the basis of the territory in which a vehicle of that vehicle rate class is used or principally used, as the case may be, is used or principally used in a different territory than that set out in the certificate,
:::report the change of address, vehicle, use or territory to a person referred to in section 3, and pay or be refunded the resulting difference in premium.
::(3) If the premium for a vehicle is established on the basis of the territory in which the vehicle is primarily located when not in use and that territory as set out in the owner's certificate is changed, the insured named on the certificate must, unless the vehicle is being used by the insured for vacation purposes, report the change to a person referred to in section 3 within 30 days of the change, and pay or be refunded the resulting difference in premium.
 
Furthermore, ICBC is not liable to indemnify an insured who, to the prejudice of ICBC, fails to comply with duties outlined in s 73 of the ''IVR'':


Furthermore, ICBC is not liable to indemnify an insured who, to the prejudice of ICBC, fails to comply with duties outlined in s 73 of the IVR. This section states that an insured:  
:'''73'''
*a) must promptly give ICBC written notice of any claim made for the accident, including any other insurance held by him or her providing coverage for the accident;
::(1) An insured must
*b) must help secure evidence and information and the attendance of any witnesses;
:::(a) promptly give the corporation written notice, with all available particulars, of
*c) must cooperate with ICBC in the defence of any action or proceeding, or appeal, taken by ICBC on behalf of the insured;
::::(i) any accident involving death, injury, damage or loss in which the insured or a vehicle owned or operated by the insured has been involved,
*d) must allow ICBC to inspect an insured vehicle at any reasonable time; 
::::(ii) any claim made in respect of the accident, and
*e) must, on receipt of a claim, legal document or correspondence relating to a claim, immediately send a copy to ICBC;
::::(iii) any other insurance held by the insured providing coverage for the accident,
*f) must not voluntarily assume liability or settle any claim except at his or her own cost; and
:::(b) on receipt of a claim, legal document or correspondence relating to a claim, immediately send the corporation a copy of the claim, document or correspondence,
*g) must not fail to cooperate with ICBC in the investigation, settlement or defence of a claim or action.  
:::(c) cooperate with the corporation in the investigation, settlement or defence of a claim or action,
:::(d) except at the insured's own cost, assume no liability and settle no claim, and
:::(e) allow the corporation to inspect an insured vehicle or its equipment or both at any reasonable time.
::(2) The corporation is not liable to an insured who, to the prejudice of the corporation, fails to comply with this section.


=== 8. Duties of the Corporation ===
=== 8. Duties of the Corporation ===


On receipt of a notice of a claim under Part 6 of the IVR, ICBC must, at its expense, assist the insured by investigating and negotiating a settlement where in its opinion such assistance is necessary, and defend the insured against any action for damages (s 74).
On receipt of a notice of a claim under Part 6 of the ''IVR'', ICBC must, at its expense, assist the insured by investigating and negotiating a settlement where, in their opinion, such assistance is necessary, and defend the insured against any action for damages (s 74).


=== 9. Rights of the Corporation ===
=== 9. Rights of the Corporation ===


Upon assuming the defence of an action for damages brought against an insured, ICBC has the right, subject to section 79 of the Act, to the exclusive conduct and control of the defence. This right includes, but is not limited to, the right to appoint and instruct counsel, to admit liability, to negotiate, and/or settle out of court (IVR, s 74.1).  
Upon assuming the defence of an action for damages brought against an insured, ICBC has the right, subject to section 79 of the Act, to the exclusive conduct and control of the defence. This right includes, but is not limited to, the right to appoint and instruct counsel, to admit liability, to negotiate, and/or settle out of court (''IVR'', s 74.1).


=== 10. Forfeiture of Claims and Relief from Forfeiture ===
=== 10. Forfeiture of Claims and Relief from Forfeiture ===


Certain conduct by the insured or applicant can result in “forfeiture”, whereby the insured is deemed to have given up his or her right to be indemnified by ICBC. In this situation, the claim for indemnification becomes invalid. Apart from exclusions, a claim may be forfeited under s 75 of the IVA if:  
Certain conduct by the insured or applicant can result in “forfeiture”, voiding their right to be indemnified by ICBC. In this situation, the claim for indemnification becomes invalid. A claim may be forfeited under s 75 of the ''IVA'' if:
*a) an applicant for coverage falsely describes the vehicle for which the application is made to the prejudice of the insurer (s 75(a)(i));  
:(a) An applicant falsely describes the vehicle in respect of which the application is made to the prejudice of the insurer (s 75(a)(i));
*b) an applicant for coverage knowingly misrepresents or fails to disclose a fact that was required to be stated in the application (s 75(a)(ii));
:(b) An applicant for coverage knowingly misrepresents or fails to disclose a fact required to be stated (s 75(a)(ii));
*c) an insured violates a term or condition of or commits a fraud in relation to the plan or the OIC (s 75(b); see [[{{PAGENAME}}#11. Breach of Conditions and Consequences | Section II.B.11. Breaches of Conditions and Consequences]];
:(c) An insured violates a term or condition of or commits a fraud in relation to the plan or the OIC (s 75(b), or makes a "willingly false statement regarding the claim (s 75(c)); see [[{{PAGENAME}}#11. Breach of Conditions and Consequences | Section X.B.11: Breach of Conditions and Consequences]].
*d) an insured makes a “wilfully false statement” with respect to a claim under a plan of insurance (s 75(c)).  


'''NOTE:''' According to ''Brooks v ICBC'' (1994), 89 BCL.R. (2d) 215 (S.C), per Bouck J, the purpose of s 19(1)(e) (now IVA, s 75(c)) is to prevent intentionally deceitful misstatements for the purpose of defrauding the insurer; “exaggerated guesses” by an insured as to the value of a lost motor vehicle, or figures inserted for the purpose of goading an insurer into action, are insufficient to deny coverage unless a fraudulent purpose on the part of the insured is shown.  
'''NOTE''': According to [https://www.canlii.org/en/bc/bcsc/doc/1994/1994canlii3304/1994canlii3304.html?autocompleteStr=brooks%20v%20insurance&autocompletePos=3 Brooks v Insurance Corporation of British Columbia], 1994 CanLII 3304 (BC SC), the purpose of s 19(1)(e) (now ''IVA'', s 75(c)) is to prevent intentionally deceitful misstatements for the purpose of defrauding the insurer. “Exaggerated guesses” by an insured as to the value of a lost motor vehicle, or figures meant to prompt an insurer into action, are insufficient to deny coverage without demonstrated fraudulent purpose.


However, ICBC may relieve the insured from forfeiture under s 75 if said forfeiture would be “inequitable”. Furthermore, ICBC must relieve an insured from forfeiture if: a) it is equitable to do so, and b) the insured dies or suffers a loss of mind or bodily function that renders the insured permanently incapable of engaging in any occupation for wages or profit (IVA, s 19(3)).  
However, ICBC may relieve the insured from forfeiture under s 75 if it would be “inequitable”. Furthermore, ICBC '''must''' relieve an insured from forfeiture if: a) it is equitable to do so, and b) the insured dies or suffers a loss of mind or bodily function that renders the insured permanently incapable of engaging in any occupation for wages or profit (''IVA'', s 19(3)).


Because there are various definitions of “insured” in the IMVAR (and IVR), the only reasonable interpretation of s 19 (the relief of forfeiture provision discussed above) is that it is to be read broadly to include all of the definitions: see ''Khatkar v ICBC'' (1993), 25 CCL.I. (2d) 243 (BC Prov. Ct.), per Stansfield Prov. Ct. J.  
Due to the various definitions of “insured” in the ''IMVAR'' and ''IVR'', the only reasonable interpretation of s 19 (the relief of forfeiture provision discussed above) is that it is to be read broadly to include all of the definitions (''Khatkar v Insurance Corporation of British Columbia'' (1993), 25 CCLI (2d) 243 (BC Prov. Ct.), per Stansfield Prov. Ct. J).


=== 11. Breach of Conditions and Consequences ===
=== 11. Breach of Conditions and Consequences ===


Insured persons must be careful to abide by the terms and conditions of their plans and OICs. Coverage may be lost if an insured breaches certain conditions, including, but not limited to:  
Insured persons must abide by the terms and conditions of their plans and OICs. Coverage may be lost if an insured breaches certain conditions, including, but not limited to:
*a) failing to comply with s 73 of the IVR, to the prejudice of ICBC (See [[{{PAGENAME}}#7. Duties of the Insured | Section II.B.7. Duty of Insured]]);
*b) operating a vehicle when not authorized and/or not qualified to do so (IVR, s 55(3)(a));
**'''NOTE:''' “Occasionally” using a vehicle to go to and from work when a vehicle is insured only for pleasure use is permissible under s 55(2) of the IVR. But, ICBC has ways to determine whether or not the insured has more than occasionally breached such a condition. If a change of use is  contemplated, additional coverage should be bought.
*c) using the vehicle in illicit trades, racing, or avoiding arrest or other police action (IVR,s 55(3)(b), (c) and (d));
*d) towing an unregistered and/or unlicensed trailer (IVR, s 55(4));
*e) using the vehicle for a different purpose than the one declared by the insured in his or her application for insurance, except as “occasionally” permitted (IVR, s 55(2(a)); or
*f) naming in the owner’s certificate someone as the principal operator of the insured vehicle who is not actually the principle operator (IVR, s 75).
'''NOTE:''' When the court determines who the principle driver is, it will consider the entire period covered by the insurance plan: see ''Dehm v ICBC'' (1982), 32 BCL.R. 23.
 
Despite any breach of condition by an insured, insurance money is still payable to '''third parties''' by ICBC in cases where the insured person was:
*a) incapable of properly controlling the vehicle because of the influence of alcohol or drugs;
*b) convicted under any one of the following sections of the ''Criminal Code'', RSC 1985, c C-46 (see also MVA Regulations, s 28.02 Table 4):
**s 220 (criminal negligence causing death); s 221 (criminal negligence causing bodily harm); s 236 (manslaughter); s 249 (dangerous operation  of a motor vehicle); s 252 (failure to stop at an accident), s 253 (driving while impaired or with a blood-alcohol level exceeding 80 milligrams per 100 millilitres); s 254(5) (refusal or failure to give a breath sample); s 255 (impaired driving causing bodily harm or death);  s 259 (4): driving while disqualified; or a conviction under the ''Youth Criminal Justice Act'' (Canada) for any of the above offences; or “similar result” or conviction of these offences in a jurisdiction in the U.S.;
**conviction under ss 95 or 102 of the MVA or similar convictions under another Canadian or American jurisdiction (both concern driving while prohibited); or
*c) permitting another person to use the insured vehicle in way that results in a conviction for any of the offences outlined above (IMVA Regulations, s 55).
 
=== 12. Making a Claim Under Part 6: Procedural Steps and Considerations ===
 
==== a) Limitation Period ====
 
Section 76 of the IVR provides that any action started to enforce third-party liability for bodily injury and/or property damage (i.e. claims made under Part 6 of the IVR) must comply with the ''Limitation Act''. Section 3(2)(a) of the ''Limitation Act'' provides a two-year limitation  period for actions for damages related to injuries to a person and/or property, including negligence claims against the driver and/or the owner of the vehicle driven.
 
Minors are not subject to a limitation period (''Limitation Act'', s 7). After the minor has reached age 19, s 3(2)(a) begins to apply and the  two year limitation period commences. However, if the minor’s guardian/etc receives a Notice to Proceed, the limitation period is initiated notwithstanding the minor status (''Limitation Act'', s 7(6)). The Notice to Proceed must meet the requirements of the ''Limitation Act'' ss 7(7)(a-g).
 
==== b) Duties Outlined in Section 73 of the IVR ====
 
An insured must comply with s 73 of the IVR. Failure to do so may result in a claim being denied. See [[{{PAGENAME}}#7. Duties of the Insured | Section II.B.7. Duties of the Insured]].
 
==== c) Service on ICBC ====
 
A claimant who starts an action for damages caused by a motor vehicle or trailer must also serve ICBC with a copy of the Notice of Civil Claim the same way the defendant is served and must also file proof of service in the court in which the action is started. No further step in the action can be taken until eight days after filing of the service in court (IVA, s 22).
 
==== d) Information and Evidence ====
 
ICBC has a broad right to compel the insured and others to provide information set out in the IVA. Specific types of information that ICBC can demand are noted in s 11 (combined forms and information); s 27 (accident report); s 28 (medical reports); s 29 (employers’ reports); and s 30 (superintendent’s records).
 
According to ''McKnight v General Casualty Insurance'', [1931] 2 W.W.R. 315 (BCCA.), an insured need not provide information or evidence to an  insurance company respecting a breach if the company is contemplating using such a breach to deny coverage to the insured. This is not considered to be refusing to cooperate with the insurer in the defence of the action. However, the insured may  still have to provide information regarding the accident itself.
 
== C. Accident (“No Fault”) Benefits: Part 7 of the IVR ==
 
=== 1. What are “No Fault” Benefits? ===
 
Regardless of who is at fault in an accident, ICBC pays benefits for injuries to the occupants of a licensed vehicle and pedestrians and cyclists injured by a vehicle described in any owner’s certificate. The accident benefits, commonly called “no fault” benefits, are payable to an insured for death or injury caused by an accident arising out of the owner’s ownership, use, or operation of a vehicle in Canada or, with some restrictions, in the U.S. (IVR, s 79(1)).
 
In ''Amos v ICBC'', [1995] 3 S.CR. 405, the Supreme Court of Canada laid out a two-part test for determining if death or injury falls within the scope of s 79(1). The following must be met:
*a) the accident must result from the ordinary and well-known activities to which automobiles are put; and
*b) there must be some nexus or causal relationship (not necessarily a direct or proximate causal relationship) between the plaintiff’s injuries  and the owner’s ownership, use, or operation of his or her vehicle. That is, the connection between the injuries and the ownership, use, or operation of the vehicle must not be merely incidental or fortuitous.
 
''Amos'' reversed the BC Court of Appeal judgment and held that the plaintiff’s injuries were causally connected to the ownership and use of his vehicle. The plaintiff was shot while driving away from a gang who was trying to gain entry into his motor vehicle. However, Major J. noted that if the gunshots had been truly random and not causally connected to the plaintiff’s ownership of the vehicle then his injuries would not have been covered under s 79(1).


=== 2. Who is Covered? ===
:(a) Failing to comply with s 73 of the ''IVR'', to the prejudice of ICBC;
:(b) Operating a vehicle when not authorized and/or not qualified to do so by law (''IVR'', s 55(3)(a));
:(c) Using the vehicle in illicit trades, racing, or to escape or avoid arrest or other similar police action (''IVR'', s 55(3)(b), (c) and (d));
:(d) Towing an unregistered and/or unlicensed trailer (''IVR'', s 55(4));
:(e) Using the vehicle for a different purpose than the one declared by the insured in their application for insurance, except as “occasionally” permitted (''IVR'', s 55(2(a)); or
:(f) Naming in the owner’s certificate someone as the principal operator of the insured vehicle who is not actually the principal operator (''IVR'', s 75).


Section 78 of the IVR contains a definition of "insured", which includes, in part:
:'''NOTE''': When the court determines who the principle driver is, it will consider the entire period covered by the insurance plan ([https://www.canlii.org/en/bc/bcsc/doc/1981/1981canlii608/1981canlii608.html?resultIndex=1 ''Dehm v Insurance Corporation of British Columbia'', 1981 CanLII 608 (BC SC)]).  
*a person named as an owner in an owner's certificate;
*a household member of a person named in an owner's certificate;
*an occupant of a vehicle that is licensed in BC and is not exempted under section 43 of the IVA (vehicles from the federal or a provincial  government other than BC);
*any occupant of a vehicle that is not required to be licensed in BC, but is operated by a person named in a driver's certificate;
*a cyclist or pedestrian who collides with a vehicle described in an owner's certificate;
*a BC resident who is entitled to bring an action for injury or death under section 20 (uninsured vehicles) or 24 (remedy for hit and run accidents) of the IVA; or
*the personal representative of a deceased insured.


=== 3. Benefits Payable ===
Despite any breach of condition by an insured, insurance money is still payable to third parties by ICBC in cases where the insured was:
:(a) Incapable of properly controlling the vehicle because of the influence of alcohol or drugs;
:(b) Convicted under any one of the following sections of the ''Criminal Code'', RSC 1985, c C-46 (see also ''MVA Regulations'', s 28.01 Table 4): 
::*s 220 (criminal negligence causing death);
::*s 221 (criminal negligence causing bodily harm);
::*s 236 (manslaughter);
::*s 249 (dangerous operation of a motor vehicle);
::*s 252(1) (failure to stop at an accident);
::*s 253 (driving while impaired or with a blood-alcohol level exceeding 80 milligrams per 100 millilitres);
::*s 254(5) (refusal or failure to give a breath sample);
::*s 255 (impaired driving causing bodily harm or death);
::*s 259(4)(driving while disqualified);
::*a conviction under the Youth Criminal Justice Act (Canada) for any of the above offences;
::*“similar result” or conviction of these offences in a jurisdiction in the U.S.; or
::*a conviction under s 95 or 102 of the ''MVA'' or similar convictions under another Canadian or American jurisdiction (both concern driving while prohibited); or
:(c) permitting another person to use the insured vehicle in a way that results in a conviction for any of the offences outlined above (''IMVA Regulations'', s 55).


==== a) Disability Benefits for Employed Persons ====
== C. Uninsured or Unidentified Motorists (Hit and Run) Cases ==


ICBC is obligated to pay “no fault” benefits to an insured person if:
=== 1. Exclusion of ICBC Liability in Uninsured or Unidentified Motorist Cases ===
*a) within 20 days of the accident, the injury completely disables the insured; and
*b) the insured is an “employed person” (IVR, s 80). 


An “employed person” is defined in s 78 of the IVR as a person who, on the day of the accident or for any 6 months during the previous 12  months immediately preceding the accident, is employed or actively engaged in an occupation for wages or profit. Eligible insured persons who are completely unable to engage in employment can collect either 75 percent of their average gross weekly earnings or $300 per week, whichever is less, for the length of the disability or 104 weeks, whichever is shorter. See section 80 and Schedule 3 of the IVR for more details.  
There are certain situations where ICBC will not be liable to pay a claim made under section 20 and/or section 24 of the IVA. ICBC will not be liable:


'''NOTE:''' There is a waiting period of seven days before disability benefits are paid out. Also, no benefits are paid for these initial seven days (IVR, 85).  
*To a claimant, under s 24 of the ''IVA'', who fails to comply with section 107(1) of the ''IVA'' without reasonable cause;
*To a claimant, under s 20 or 24 of the ''IVA'', for loss or damage arising while the vehicle was in the claimant’s possession without the owner’s consent (i.e., stolen) (''IVR'', s 107(2)(a)).


==== b) Disability Benefits for Homemakers ====
=== 2. Forfeiture and Breach of Conditions in Uninsured and Underinsured Motorist Cases ===


Insured persons who are homemakers may also eligible for no fault benefits. If a homemaker sustains an injury from an accident, and it  substantially or continuously disables the insured from regularly performing most household tasks, ICBC will compensate the insured for the  duration of the disability or 104 consecutive weeks, whichever is shorter (IVR, s 84(1)). The insured will be compensated for reasonable expenses incurred by the insured in hiring a person to perform household tasks on the insured’s behalf, up to a maximum of $145 per week (IVR, Schedule 3, s 2). However, there is no compensation for household tasks performed by an insured’s family members (IVR, s 84(2)).  
The same provisions apply as those outlined under [[{{PAGENAME}}#10. Forfeiture of Claims and Relief from Forfeiture | Section X.B.10: Forfeiture of Claims and Relief from Forfeiture]] and [[{{PAGENAME}}#11. Breach of Conditions and Consequences | Section X.B.11: Breach of Conditions and Consequences]], above. These are contained in s 19 of the ''IVA'' and s 55 of the ''IVR''.


==== c) Disability Beyond 104 Weeks ====
=== 3. Underinsured Motorist Protection (UMP): Part 10, Division 2 of the ''IVR'' ===


If at the end of the first two years, the total disability continues, an insured receiving benefits under s 80 or 84 of the IVR can continue  to receive the payments for the duration of the disability or until the age of 65, whichever is shorter (IVR, s 86). The no fault benefits will be reduced by the amount of the Canada Pension Plan benefits if and when such benefits become payable to the insured (IVR, s 86).
==== a) What is UMP Coverage? ====


'''NOTE:''' Any benefits payable under s 80, 84, or 86 of the IVR may be reviewed every 12 months and terminated by ICBC on the advice of its medical adviser (IVR, s 87).  
UMP coverage, part of the basic compulsory coverage, provides $1,000,000 in compensation against bodily injury or death for the victim of an accident caused by a motorist who does not carry sufficient insurance. The maximum coverage under UMP is $2,000,000 (which an insured must pay an extra premium to purchase) for each insured person (Schedule 3, s 13 of the ''IVR'').  This limit includes claims for prejudgment and post-judgment interest and costs. See section 148.1(5).  


==== d) Medical or Rehabilitation Benefits ====
==== b) Prerequisites for UMP Coverage ====


In addition to the disability benefits described above, ICBC is obligated to pay all reasonable expenses incurred by the insured as a result  of the injury for necessary medical, surgical, dental, hospital, ambulance or professional nursing service, or for necessary physiotherapy,  chiropractic treatment, occupational therapy or speech therapy or for prosthesis or orthosis (IVR, s 88(1)). In appropriate cases, ICBC may also provide attendant care to the insured to perform duties normally undertaken by the insured (IVR, s 88(2)(c)). Under Schedule 3, s 3, ICBC’s liability for rehabilitation benefits is limited to $150,000. Also, ICBC is not liable for expenses payable to the insured under a  medical, surgical, dental, or hospital plan, or paid or payable by another insurer (s 88(6)).
Generally, UMP coverage is available where an insured’s death or injury is caused by the operation of a vehicle operated by an underinsured motorist, and occurs in Canada or the U.S.  


==== e) Death Benefits ====
If an insured is making a claim for UMP coverage in relation to a '''hit and run accident''', there are additional requirements that need to be met (s 148.1(4)):


In the event of the applicant’s death, ICBC will pay:
* The accident must occur on a highway; and
*a) up to $2,500 for funeral expenses (see s 91 and s 4 of Schedule 3 of the IVR);
* The accident must have '''physical''' contact between the insured vehicle and the unidentified vehicle, '''if''' it occurred in Nunavut, the Yukon Territory, the Northwest Territories, or the United States.
*b) $5,000 if the deceased was a “head of a household” (i.e. was providing the “major portion” of household income), plus a Supplemental Death  benefit of $1,000 for each survivor other than the first, plus Additional Death Benefits of $145 per week for the first survivor and $35 per  week for each additional survivor for a duration of 104 weeks (see s 92 –94 and Schedule 3 ss 5, 6 and 7 of the IVR);
*c) $2,500 if the deceased was a “spouse in household” (i.e. was supporting the household or helping to raise dependent children), plus a  Supplemental Death benefit of $1,000 for each survivor other than the first, plus Additional Death Benefits of $145 per week for the first  survivor and $35 per week for each additional survivor for a duration of 104 weeks (see s 92 - 94 and Schedule 3 ss 5, 6, 8 of the IVR); and
*d) $500 to $1,500 for the death of each dependent child, depending on the child’s age (see Schedule 3, s 5 of the IVR).


'''NOTE:''' Status with respect to “head of household”, “spouse of household” or “dependent child” is determined at the date of death resulting from a motor vehicle accident.
==== c) Who is Covered? ====


=== 4. Restrictions and Exclusion of Benefits ===
Under section 148.1 ''IVR'', “insured” includes, but is not limited to:


Students should check the IVR carefully to find what restrictions are applicable to a given claim for benefits. The following is merely a  brief summary of some very complicated provisions. Generally, ICBC is not liable to pay any of the benefits discussed above, in any of the following situations:
* A person named in the owner’s certificate and members of their household;  
*if the applicant resides outside BC and the vehicle in which he or she was riding or driving at the material time was not designated in an owner’s certificate (s 96(a));
* Any person who is an occupant of the insured vehicle;  
*if the applicant at the time of the accident was an occupant of, or was struck by, a vehicle that could not be licensed under the MVA or ''Commercial Transport Act'' (s 96(b)(i));  
* Any person with a valid BC “driver’s certificate” (i.e., driver’s license) and members of their household; and
*if the death or injury resulted from the injured person’s suicide or attempted suicide, whether “sane or insane” (s 96(c));  
* Any person entitled, in the jurisdiction in which the accident occurred, to maintain an action against the underinsured motorist for damages because of the death of one of the insured.
*if applicant was an occupant of a vehicle being used in an illicit trade at  the time of the accident (s 96(e)); or
*if the death or injury is a result of the applicant's medical condition, as distinct from an injury caused by the accident, unless the condition was itself a direct result of an accident for which benefits are provided under Part 7 of the IVR (s 96(f)).


Also, under s 90 of the IVR, ICBC may terminate an insured’s benefits if an insured refuses to undergo any:
==== d) Who is Not Covered? ====
*medical, surgical, or other similar treatment, which, in the opinion of the ICBC medical adviser and the medical practitioner attending the insured, is likely to relieve, wholly or partly, the insured’s disability; or
*retraining or educational program likely to assist in the insured’s rehabilitation. 


If ICBC intends to terminate an insured’s benefit, ICBC must first give an insured at least 60 days notice in writing, by registered mail, of  their intention to terminate benefits. Under section 90(3) of the IVR, the insured may, within that 60-day period, apply to the Supreme Court for an injunction against the termination of the benefits, on the ground that:
Section 148.1(3) of the ''IVR'' describes when ICBC will not be liable. Some limitations include:
*the treatment required of the insured is unlikely to relieve the disability; 
*the treatment may injuriously affect the balance of the insured’s health; or 
*the treatment program is not likely to assist in rehabilitation.  


=== 5. Forfeiture and Breach of Conditions ===
* The insured’s vehicle was not licensed, and the insured had no reasonable grounds to believe it was; or
* The vehicle’s operator or passenger did not have the owner’s consent to operate or be in the vehicle and ought to have known there was no consent (i.e., the operator or passenger is in a stolen vehicle).


The same provisions apply as those outlined under Third Party Legal Liability. These are contained in s 19 of the IVA and s 55 of the IVR. See [[{{PAGENAME}}#10. Forfeiture of Claims and Relief from Forfeiture | Section II.B.10: Forfeiture of Claims and Relief from Forfeiture]] and [[{{PAGENAME}}#11. Breach of Conditions and Consequences | Section II.B.11: Breach of Conditions and Consequences]], above.
==== e) UMP Coverage and Accidents Outside BC ====


=== 6. Making a Claim Under Part 7: Procedural Steps and Considerations ===
For accidents occurring outside BC, the '''law of the place where the accident occurred determines the legal liability of an underinsured motorist''', whereas the amount of the UMP claim is determined by BC law.  See section 148.2(6) of the ''IVR''.


==== a) Limitation Period ====
UMP protection does not apply in a jurisdiction where the right to sue for injuries caused by a vehicle accident is barred by law (''IVR'', s 148.2(4)) or to vehicles used as buses, taxis, or limousines (s 148.4).


Section 103 of the IVR provides that any action started to enforce no fault or accident benefits must do the following:
==== f) Forfeiture and Breach of Conditions ====
*the insured must have “substantially” complied with sections 97-100 (See Section II.C.6.b) Duties in Sections 97-100 of the IVR); and  
*the action must be started within two years after the date of the accident for which the benefits are claimed, or where benefits have been  paid, the date the insured last received a payment. This limitation period also applies to minors. In other words, the limitation date for Part 7 actions for minors do not commence at age 19 but commences on the date of the accident.


==== b) Duties in Sections 97-100 of the IVR ====
Under section 148.2(5) of the ''IVR'', the same provisions that apply to those outlined under Third Party Legal Liability also apply here (see Section XI.B.10: Forfeiture of Claims and Relief from Forfeiture and Section XI.B.11: Breach of Conditions and Consequences, above.). An award otherwise available under UMP will be reduced by any amount forfeited by a breach outlined in s 55.


An insured must meet the requirements set out in s 97-100 of the IVR. If an insured fails to do this to the prejudice of ICBC, ICBC may deny  coverage of a claim. The following is a brief summary and claimants should refer to the IVR for more detail. The insured must comply with the following:
==== g) Dispute Resolution ====


Disputes between claimants and ICBC, and the reasons for the decision must be published (''IVR'', s 148.2(1.1) and ((2.1)).




p12-13
{{LSLAP Manual Navbox|type=chapters8-14}}

Latest revision as of 17:47, 7 August 2024

This information applies to British Columbia, Canada. Last reviewed for legal accuracy by the Law Students' Legal Advice Program on August 6, 2024.
LSLAP Manual
LSLAP Manual
This page is from the
Law Students' Legal
Advice Program Manual.
See the full contents.
LSLAP Manual
Introduction
Chapters
12. Auto Insurance (ICBC)

 · II. Governing Legislation & Resources
 · III. Enhanced Care System
 · IV. Optional Insurance
 · V. Seeking Legal Counsel
 · VI. Disputes with ICBC
 · VII. When You Can Still Sue
 · VIII. ICBC's Previous Autoplan Insurance System
 · IX. Limitation on Experts

 · X. Compulsory Coverage
v • d • e



NOTE: The following portion of this chapter was written prior to April 30, 2021. Therefore, though it is written in the present tense, please be advised that it applies only to claims for accidents that occurred on or before April 30, 2021.

ICBC is the sole provider of basic insurance for non-exempt vehicles in BC. Exempt vehicles are described in sections 43–44 of the IVA and also in section 2 of the IVR. For most vehicles owned, leased, or operated in BC, third-party liability coverage up to $200,000 is only available from ICBC. Full coverage for exempt vehicles, extended coverage in excess of the basic coverage (third party liability insurance over $200,000, IVR, s 67), and collision (“own damage”) insurance may be purchased from either ICBC or from private insurers. Private insurers may have their own requirement for coverage that may be above and beyond the requirements of ICBC

Vehicles licensed in BC must carry basic compulsory coverage, evidenced by a certificate of automobile insurance issued under the IVA to someone licensed under the MVA (i.e., the “insured”).

NOTE: The definition of “the insured” varies somewhat from section to section in the IVA and IVR.

Driving while uninsured is an offence (MVA, s 24(3)(a)) which carries a maximum penalty of a fine of up to $250 and/or imprisonment of up to three months (MVA, s 24(5)(a)). Driving an uninsured vehicle is also an offence (MVA, s 24(3)(b)) which carries a fine of at least $300 and no more than $2,000 and/or imprisonment for at least seven days and no more than six months (MVA, s 24(5)(b)).

A. Scope of Coverage

Subject to various limitations and exclusions, basic compulsory coverage is set out in the IVR and provides the insured with:

  • Indemnity for third party legal liability (Part 6);
  • Accident benefits; no-fault benefits payable for death or injury (Part 7);
  • Coverage for damages caused by uninsured or unidentified motorists (Part 8);
  • First party coverage (Part 10). This includes:
  • Inverse liability (Division 1 of Part 10); and
  • Underinsured motorist protection (UMP) (Division 2 of Part 10).

B. Third Party Legal Liability: Part 6 of the IVR

1. Indemnity

This insurance indemnifies the insured against liability for the injury or death of another, and/or loss or damage to another’s property, up to $200,000 (IVR, s 67), to be shared among the victims of a motor vehicle accident (Schedule 3, s 1). The base limit of liability is $500,000 for buses and $300,000 for taxis or limousines. Extended Third Party Legal Liability coverage may be purchased. If the insured is found legally liable, and has no extended coverage, they are responsible for payment of any claims in excess of the above limits.

As of September 16, 2019, ICBC offers a new insurance category (blanket insurance certificate) for transportation network services (TNS) or ride-hailing companies. It provides coverage up to $1,000,000 third party liability when the vehicle is a) hailed by passengers through the online platform and b) is operated to transport the passengers (IVR, s 154). This blanket coverage is mandatory for ride-hailing companies, not for individual drivers.

2. Who is Covered

The definitions of “insured” for this part of the IVR may be found in IVR, s 63. For our purposes, the most relevant definitions of “insured” are:

(a) A person named as an owner in an owner's certificate;
(b) An individual who, with the consent of the owner or while a member of the owner's household, uses or operates the vehicle described in the owner’s certificate;
(c) Where the owner is deceased, the personal representative of the owner or a person having, with the consent of the personal representative, custody of the vehicle until the grant of letters probate or of administration to the personal representative; and
(d) Where the owner is not an individual:
(i) An officer, employee, or partner of the owner for whose regular use the vehicle described in the owner's certificate is provided; or
(ii) A member of the household of an officer, employee, or partner of the owner, who, with the consent of the owner, uses or operates the vehicle described in the owner's certificate.

3. Extension of Indemnity

According to IVR, s 65, indemnity is extended to an insured who operates a motor vehicle not described in an owner’s certificate issued to the insured (i.e., someone else’s car). For the purposes of s 65 only, “insured” includes the following:

(a) A person named as an owner in an owner’s certificate;
(b) A member of the owner’s household;
(c) An employee or partner of the owner for whose, regular use the vehicle described in the owner’s certificate is provided; and
(d) The spouse of an employee or partner described in paragraph (c) where the spouse resides with the employee or partner.

As of September 1, 2019, ICBC requires drivers to list out all the household members who may drive their vehicles, regardless of the number of times they may drive it, and non-household members who may drive the insured’s vehicle more than 12 times a year. The additional drivers are factored into the premium calculation.

See ICBC's webpage on who should be listed as a driver for more information.

If an unlisted driver is in an accident, ICBC can impose a financial penalty on the principal’s policy and a higher premium rate when the principal renews the policy in the future.

4. Restrictions on Indemnity

Section 65(2) of the IVR states that if an insured is operating a motor vehicle that is not described in an owner’s certificate issued to them, indemnity is not extended to the insured if:

  • The vehicle is operated in connection with the business of a garage service operator;
  • The motor vehicle is owned or regularly operated by the insured;
  • The motor vehicle is for commercial use.

For a TNS-only vehicle operated under a transportation network services authorization, the corporation's exemption applies only if injury or death of another, or loss or damage to property of another, arises out of the operation of the TNS-only vehicle when:

(a) The vehicle has been hailed by or for passengers through the use of the online platform to which the transportation network services authorization relates; and
(b) The insured is operating the vehicle for the purposes of picking up, transporting or dropping off those passengers;
(c) The motor vehicle is in fact not licensed under the MVA (or similar legislation) and the insured does not have reasonable grounds to believe the motor vehicle is licensed; or
(d) The insured is operating the vehicle without the consent of the owner and does not have reasonable grounds to believe that they have the consent of the owner.

Section 77 provides that an owner seeking to rely on the coverage provided for a vehicle not named in the owner’s certificate cannot do so if they also own (or lease) the non-described vehicle that has been involved in the accident (i.e. you cannot just insure one vehicle and expect this to cover all of the other vehicles in your fleet).

Garage service operators and their employees are not covered by the owner’s certificate issued for customers’ vehicles while the vehicle is in their care, custody, or control. “Garage service operator” is defined in Part 1 of the IVR as “the operator of a motor vehicle service facility and includes a dealer, service station operator, motor vehicle repairman, auto body shop repairman, wrecker operator, and the operator of a vehicle parking or storage facility” (s 57). To offset the effect of s 57, the garage service operator must obtain special coverage pursuant to s 150.

5. What is Covered

In addition to the legal liability coverage outlined above, IVR s 67 and 69 states that ICBC may also pay for:

(a) Reimbursement an insured for reasonable payments for emergency medical aid necessary to a person injured as the result of an accident for which indemnity is payable under this Part, if reimbursement is not provided to the insured under another Part or by another insurer;
(b) Costs incurred for fire extinguishers, jacks or other necessary emergency equipment or supplies provided to the insured;
(c) Pay that proportion of the costs taxed against an insured in an action respecting a claim under this Part that,
(1) The amount offered by the corporation as its total liability for indemnity to the insured under this Part in an offer to settle served in accordance with the Supreme Court Civil Rules bears to
(2) The aggregate of all special and general damages awarded in respect of the occurrence for which the claim is made;
(d) Pay
(1) Prejudgment interest under the Court Order Interest Act or similar legislation of another jurisdiction; and
(2) Post-judgment interest under the Interest Act (Canada) or similar legislation of another jurisdiction on that part of the judgment that is within the applicable limit set out in section 1 of Schedule 3; and
(e) If indemnity is provided to the insured under this Part and by one or more optional insurance contracts provided by an insurer other than the corporation, contribute to the payment of expenses, costs and reimbursements for which provision is made under section 172 in accordance with that other insurer's and the corporation's respective liabilities for,
(1) Damages awarded against the insured; or
(2) The amount payable under a settlement made on behalf of the insured.

6. What is Not Covered

ICBC will not indemnify an insured for:

  • Loss or damage to property carried in or on a vehicle owned, rented or in the care, custody or control of an insured (s 72.1); or
  • Liability arising out of the operation of attached equipment (which is not required for the safe operation of that vehicle) at a site where such equipment is operated, unless the attached equipment is used in accordance with the IVR (s 72(2)); or
  • Under Part 4, 6, 7, or 10 in respect of injury, death, loss or damage arising, directly or indirectly, out of radioactive, toxic, explosive or other hazardous properties of nuclear substances within the meaning of the Nuclear Safety and Control Act (Canada), s 56(1)(a)); or
  • Under sections 20 or 24 of the Act or section 49.3, Part 7 or Part 10 of the IVR in respect of any injury, death, loss or damage arising, directly or indirectly out of a declared or undeclared war or insurrection, rebellion or revolution (IVR, s 56(1)(b)); or
  • Under IVA, ss 20 or s 24, under IVR, ss 49 or 49.3(1)(b), Part 6 or Part 10 in respect of punitive or exemplary damages or other similar non-compensatory damages (IVR, s 56(1)(c)); or
  • Assessments, penalties or premiums, payable under the Workers’ Compensation Act (British Columbia) or similar Act (IVR, s 72.1(1)(a)).

7. Duties of the Insured

An insured has a duty to report to ICBC mid-term changes, as required by s 9 of the IVR. These changes may result in an increase or decrease in the premiums paid to ICBC. The insured named in the owner’s certificate is obligated to report to an ICBC agent the following:

9
(1) In this section, "the territory in which the vehicle is primarily located when not in use" means the territory in which the place where the vehicle is kept when not being driven is located.
(2) The insured named on an owner's certificate must,
(a) within 10 days after
(i) the insured's address is changed from the address set out in the certificate, or
(ii) the insured acquires a substitute vehicle for the vehicle described in the certificate, or
(b) before
(i) the use of the vehicle described in the certificate is changed to a use to which a different vehicle rate class applies than the vehicle rate class applicable to the use set out in the certificate, or
(ii) a vehicle in respect of which the premium is established on the basis of the territory in which a vehicle of that vehicle rate class is used or principally used, as the case may be, is used or principally used in a different territory than that set out in the certificate,
report the change of address, vehicle, use or territory to a person referred to in section 3, and pay or be refunded the resulting difference in premium.
(3) If the premium for a vehicle is established on the basis of the territory in which the vehicle is primarily located when not in use and that territory as set out in the owner's certificate is changed, the insured named on the certificate must, unless the vehicle is being used by the insured for vacation purposes, report the change to a person referred to in section 3 within 30 days of the change, and pay or be refunded the resulting difference in premium.

Furthermore, ICBC is not liable to indemnify an insured who, to the prejudice of ICBC, fails to comply with duties outlined in s 73 of the IVR:

73
(1) An insured must
(a) promptly give the corporation written notice, with all available particulars, of
(i) any accident involving death, injury, damage or loss in which the insured or a vehicle owned or operated by the insured has been involved,
(ii) any claim made in respect of the accident, and
(iii) any other insurance held by the insured providing coverage for the accident,
(b) on receipt of a claim, legal document or correspondence relating to a claim, immediately send the corporation a copy of the claim, document or correspondence,
(c) cooperate with the corporation in the investigation, settlement or defence of a claim or action,
(d) except at the insured's own cost, assume no liability and settle no claim, and
(e) allow the corporation to inspect an insured vehicle or its equipment or both at any reasonable time.
(2) The corporation is not liable to an insured who, to the prejudice of the corporation, fails to comply with this section.

8. Duties of the Corporation

On receipt of a notice of a claim under Part 6 of the IVR, ICBC must, at its expense, assist the insured by investigating and negotiating a settlement where, in their opinion, such assistance is necessary, and defend the insured against any action for damages (s 74).

9. Rights of the Corporation

Upon assuming the defence of an action for damages brought against an insured, ICBC has the right, subject to section 79 of the Act, to the exclusive conduct and control of the defence. This right includes, but is not limited to, the right to appoint and instruct counsel, to admit liability, to negotiate, and/or settle out of court (IVR, s 74.1).

10. Forfeiture of Claims and Relief from Forfeiture

Certain conduct by the insured or applicant can result in “forfeiture”, voiding their right to be indemnified by ICBC. In this situation, the claim for indemnification becomes invalid. A claim may be forfeited under s 75 of the IVA if:

(a) An applicant falsely describes the vehicle in respect of which the application is made to the prejudice of the insurer (s 75(a)(i));
(b) An applicant for coverage knowingly misrepresents or fails to disclose a fact required to be stated (s 75(a)(ii));
(c) An insured violates a term or condition of or commits a fraud in relation to the plan or the OIC (s 75(b), or makes a "willingly false statement regarding the claim (s 75(c)); see Section X.B.11: Breach of Conditions and Consequences.

NOTE: According to Brooks v Insurance Corporation of British Columbia, 1994 CanLII 3304 (BC SC), the purpose of s 19(1)(e) (now IVA, s 75(c)) is to prevent intentionally deceitful misstatements for the purpose of defrauding the insurer. “Exaggerated guesses” by an insured as to the value of a lost motor vehicle, or figures meant to prompt an insurer into action, are insufficient to deny coverage without demonstrated fraudulent purpose.

However, ICBC may relieve the insured from forfeiture under s 75 if it would be “inequitable”. Furthermore, ICBC must relieve an insured from forfeiture if: a) it is equitable to do so, and b) the insured dies or suffers a loss of mind or bodily function that renders the insured permanently incapable of engaging in any occupation for wages or profit (IVA, s 19(3)).

Due to the various definitions of “insured” in the IMVAR and IVR, the only reasonable interpretation of s 19 (the relief of forfeiture provision discussed above) is that it is to be read broadly to include all of the definitions (Khatkar v Insurance Corporation of British Columbia (1993), 25 CCLI (2d) 243 (BC Prov. Ct.), per Stansfield Prov. Ct. J).

11. Breach of Conditions and Consequences

Insured persons must abide by the terms and conditions of their plans and OICs. Coverage may be lost if an insured breaches certain conditions, including, but not limited to:

(a) Failing to comply with s 73 of the IVR, to the prejudice of ICBC;
(b) Operating a vehicle when not authorized and/or not qualified to do so by law (IVR, s 55(3)(a));
(c) Using the vehicle in illicit trades, racing, or to escape or avoid arrest or other similar police action (IVR, s 55(3)(b), (c) and (d));
(d) Towing an unregistered and/or unlicensed trailer (IVR, s 55(4));
(e) Using the vehicle for a different purpose than the one declared by the insured in their application for insurance, except as “occasionally” permitted (IVR, s 55(2(a)); or
(f) Naming in the owner’s certificate someone as the principal operator of the insured vehicle who is not actually the principal operator (IVR, s 75).
NOTE: When the court determines who the principle driver is, it will consider the entire period covered by the insurance plan (Dehm v Insurance Corporation of British Columbia, 1981 CanLII 608 (BC SC)).

Despite any breach of condition by an insured, insurance money is still payable to third parties by ICBC in cases where the insured was:

(a) Incapable of properly controlling the vehicle because of the influence of alcohol or drugs;
(b) Convicted under any one of the following sections of the Criminal Code, RSC 1985, c C-46 (see also MVA Regulations, s 28.01 Table 4):
  • s 220 (criminal negligence causing death);
  • s 221 (criminal negligence causing bodily harm);
  • s 236 (manslaughter);
  • s 249 (dangerous operation of a motor vehicle);
  • s 252(1) (failure to stop at an accident);
  • s 253 (driving while impaired or with a blood-alcohol level exceeding 80 milligrams per 100 millilitres);
  • s 254(5) (refusal or failure to give a breath sample);
  • s 255 (impaired driving causing bodily harm or death);
  • s 259(4)(driving while disqualified);
  • a conviction under the Youth Criminal Justice Act (Canada) for any of the above offences;
  • “similar result” or conviction of these offences in a jurisdiction in the U.S.; or
  • a conviction under s 95 or 102 of the MVA or similar convictions under another Canadian or American jurisdiction (both concern driving while prohibited); or
(c) permitting another person to use the insured vehicle in a way that results in a conviction for any of the offences outlined above (IMVA Regulations, s 55).

C. Uninsured or Unidentified Motorists (Hit and Run) Cases

1. Exclusion of ICBC Liability in Uninsured or Unidentified Motorist Cases

There are certain situations where ICBC will not be liable to pay a claim made under section 20 and/or section 24 of the IVA. ICBC will not be liable:

  • To a claimant, under s 24 of the IVA, who fails to comply with section 107(1) of the IVA without reasonable cause;
  • To a claimant, under s 20 or 24 of the IVA, for loss or damage arising while the vehicle was in the claimant’s possession without the owner’s consent (i.e., stolen) (IVR, s 107(2)(a)).

2. Forfeiture and Breach of Conditions in Uninsured and Underinsured Motorist Cases

The same provisions apply as those outlined under Section X.B.10: Forfeiture of Claims and Relief from Forfeiture and Section X.B.11: Breach of Conditions and Consequences, above. These are contained in s 19 of the IVA and s 55 of the IVR.

3. Underinsured Motorist Protection (UMP): Part 10, Division 2 of the IVR

a) What is UMP Coverage?

UMP coverage, part of the basic compulsory coverage, provides $1,000,000 in compensation against bodily injury or death for the victim of an accident caused by a motorist who does not carry sufficient insurance. The maximum coverage under UMP is $2,000,000 (which an insured must pay an extra premium to purchase) for each insured person (Schedule 3, s 13 of the IVR). This limit includes claims for prejudgment and post-judgment interest and costs. See section 148.1(5).

b) Prerequisites for UMP Coverage

Generally, UMP coverage is available where an insured’s death or injury is caused by the operation of a vehicle operated by an underinsured motorist, and occurs in Canada or the U.S.

If an insured is making a claim for UMP coverage in relation to a hit and run accident, there are additional requirements that need to be met (s 148.1(4)):

  • The accident must occur on a highway; and
  • The accident must have physical contact between the insured vehicle and the unidentified vehicle, if it occurred in Nunavut, the Yukon Territory, the Northwest Territories, or the United States.

c) Who is Covered?

Under section 148.1 IVR, “insured” includes, but is not limited to:

  • A person named in the owner’s certificate and members of their household;
  • Any person who is an occupant of the insured vehicle;
  • Any person with a valid BC “driver’s certificate” (i.e., driver’s license) and members of their household; and
  • Any person entitled, in the jurisdiction in which the accident occurred, to maintain an action against the underinsured motorist for damages because of the death of one of the insured.

d) Who is Not Covered?

Section 148.1(3) of the IVR describes when ICBC will not be liable. Some limitations include:

  • The insured’s vehicle was not licensed, and the insured had no reasonable grounds to believe it was; or
  • The vehicle’s operator or passenger did not have the owner’s consent to operate or be in the vehicle and ought to have known there was no consent (i.e., the operator or passenger is in a stolen vehicle).

e) UMP Coverage and Accidents Outside BC

For accidents occurring outside BC, the law of the place where the accident occurred determines the legal liability of an underinsured motorist, whereas the amount of the UMP claim is determined by BC law. See section 148.2(6) of the IVR.

UMP protection does not apply in a jurisdiction where the right to sue for injuries caused by a vehicle accident is barred by law (IVR, s 148.2(4)) or to vehicles used as buses, taxis, or limousines (s 148.4).

f) Forfeiture and Breach of Conditions

Under section 148.2(5) of the IVR, the same provisions that apply to those outlined under Third Party Legal Liability also apply here (see Section XI.B.10: Forfeiture of Claims and Relief from Forfeiture and Section XI.B.11: Breach of Conditions and Consequences, above.). An award otherwise available under UMP will be reduced by any amount forfeited by a breach outlined in s 55.

g) Dispute Resolution

Disputes between claimants and ICBC, and the reasons for the decision must be published (IVR, s 148.2(1.1) and ((2.1)).


v • d • e
 
Chapters 8-14
Employment Insurance  · Employment Law  · Creditors and Debtors  · Consumer Protection  · Auto Insurance (ICBC)  · Motor Vehicle Law  · Mental Health Law
Chapter Eight:
Employment Insurance
Chapter Nine:
Employment Law
Chapter Ten:
Creditors' Remedies and Debtors' Assistance
Chapter Eleven:
Consumer Protection
Chapter Twelve:
Auto Insurance (ICBC)
Chapter Thirteen:
Motor Vehicle Law
Chapter Fourteen:
Mental Health Law
© Copyright 2024, The Greater Vancouver Law Students' Legal Advice Society.


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