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Difference between revisions of "Claims Involving Out-of-province Insurers or Accidents (12:XIII)"

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Claims Involving Out-of-province Insurers or Accidents (12:XIII) (view source)

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:'''NOTE:''' Failure by an out-of-province insurer to disclose that it has signed a PAU cannot be grounds for claims of bad faith or negligence ([http://www.canlii.org/en/bc/bcca/doc/2009/2009bcca78/2009bcca78.html?autocompleteStr=pearlman%20v%20amer&autocompletePos=1 ''Pearlman v American Commerce Insurance Co''], 2009 BCCA 78).
:'''NOTE:''' Failure by an out-of-province insurer to disclose that it has signed a PAU cannot be grounds for claims of bad faith or negligence ([http://www.canlii.org/en/bc/bcca/doc/2009/2009bcca78/2009bcca78.html?autocompleteStr=pearlman%20v%20amer&autocompletePos=1 ''Pearlman v American Commerce Insurance Co''], 2009 BCCA 78).


=== 2. No Fault Benefits and Underinsured Motorist Protection (UMP) Entitlements ===
=== 2. Underinsured Motorist Protection (UMP) Entitlements ===


Section 83(2) of IVA provides that a person who has a claim for damages and who receives or is entitled to receive benefits respecting the loss on which the claim is based, is deemed to have released the claim to the extent of the benefits. Thus, the section provides a defence, limiting the extent of liability to a defendant where the plaintiff is entitled to benefits under the IVA or another vehicle insurance scheme. This  defence is also available for out-of-province insurers who eligible to provide insurance in BC. The defendant bears the burden of proving the amount of any entitlement (irrespective of actual payment).  
Underinsured Motorist Protection is mandatory first-party coverage provided by ICBC to compensate an insured in the case of injury or death caused by an at-fault motorist.  Generally, most residents of B.C. will have <span class="noglossary">access</span> to UMP coverage as the definition of an “insured” set out at s 148.1 of the ''IVA'' includes:
*(a) an occupant of a motor vehicle described in the owner's certificate,
*(b) a person who is
**(i) named as the owner or renter in the owner's certificate where that person is an individual,
**(i.1) an assigned corporate driver, or
**(ii) a member of the household of a person described in subparagraph (i) or (i.1),
*(b.1) a person who is
**(i) an insured as defined in section 42 and who is not in default of premium payable under section 45, or
**(ii) a member of the household of an insured described in subparagraph (i), or
*(c) a person who, in the jurisdiction in which the accident occurred, is entitled to maintain an action against the underinsured motorist for damages because of the death of a person described in paragraphs (a), (b) or (b.1), and, for the purpose of the payment of compensation under this Division, includes the personal representative of a deceased insured.


An out-of-province insurer may also be liable to provide UMP coverage notwithstanding that its policy does not include such coverage.   
If a claimant is injured in an accident caused by an individual with limited or no insurance, the ''IVA'' still provides for compensation.  However, UMP coverage is coverage of last resort, and ICBC often requires a claimant to exhaust all other avenues before accessing UMP, including litigating against an at-fault motorist with limited coverage.
 
Under UMP, the basic coverage received is $1 million.  However, excess UMP coverage to $2 million can be purchased by paying a premium on ICBC insurance. 
 
From the UMP coverage, ICBC is entitled to make various deductions under s 148.1 of the ''IVR'' (under the definition of “deductible amount”).  The deduction of a plaintiff’s other insurance entitlements can have a significant impact on the value of a legitimate claim.


=== 3. Optional Insurance Contracts and Excess Coverage ===
=== 3. Optional Insurance Contracts and Excess Coverage ===
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