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

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Introduction to ICBC Automobile Insurance (12:I) (view source)

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=== 1. Indemnification ===
=== 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, here ICBC, “indemnifies” the insured.2.Subrogation 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). 3.Premiums 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 20 percent on optional 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. 4.Waiver 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.
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.
 
=== 2. Subrogation ===
 
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).  
 
=== 3. Premiums ===
 
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 20 percent on optional 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.  
 
=== 4. Waiver ===
 
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.
 
== D. Application of the Current Legislation, and Transitional Provisions ==
 
Transitional provisions in Parts 1, 4, and 5 of the IVA dictate which regime, old or new, will apply to a particular claim (ss 1.2, 58, and 74 respectively).
 
For the sake of brevity, it is generally safe to say that the IVA and the IVR, taken as a whole, apply to:
*'''Insurance policies''' under the universal compulsory vehicle insurance plan set out by the Act (the “plan”) that take effect on or after June 1, 2007; 
*Optional '''insurance contracts''' that take effect on or after June 1, 2007;
*Any '''claims''' that arise under these insurance plans or contracts; and
*'''Insured persons''', and '''insurers''', and '''ICBC''' in relation to these insurance plans or contracts.
 
'''NOTE:''' The critical time to look at is the date on which the individual insurance policy or contract came into effect, or was renewed. 
 
Claims and parties to the claims in relation to an insurance policy that came into effect before June 1, 2007 will continue to be governed by  the old IMVA and IMVAR. It is entirely possible for a single accident to trigger the operation of both the old and new Acts simultaneously,  (albeit in relation to different aspects of the resultant legal issues). The situation is more nuanced than described here, therefore students are advised to refer directly to the Act to assess individual cases.
 
Although the IVA and IVR cover both ICBC and private insurer plans, some parts of the Act and Regulation apply only to one or the other. Specifically, the parts of the Act and Regulation that govern ICBC are Parts 1, 2, 3, 5, and 6 of the Act and Parts 1, 2, 3, 4, 5, 6, 7, 8,  10, 11, 12, and 14 of the Regulation. The parts of the Act and the Regulation that govern the private insurers are Parts 4, 5, and 6 of the Act and Parts 13 and 14 of the Regulation.
 
Furthermore, the IVA and IVR apply to both universal mandatory coverage and optional coverage. Part 1 of the IVA applies to ICBC’ s mandatory coverage only. Part 4 of the IVA applies to optional coverage. Parts 5 and 6 of the IVA apply to both mandatory coverage and optional coverage.
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