Difference between revisions of "ICBC and Basic Coverage (12:III)"

The Enhanced Care system also includes a recreation benefit for those who are permanently impaired as a result of their injuries. This benefit provides support for the insured to participate in certain recreational activities following their injury. Note that this benefit is only available to those with a “catastrophic injury” or those, “with a permanent impairment rating of 20% or more as determined in accordance with the Permanent Impairment Regulation” (''EABR'', s 36(2)). The dollar amount awarded for this benefit correlates to the percentage degree to which the insured is deemed to be permanently impaired (''EABR'', s 36(7)).

Basic vehicle damage coverage is also a part of ICBC’s mandatory basic coverage (''IVA'', s 173), and provides indemnification for certain vehicle repairs and other losses resulting from vehicle damage that occur as a result of an accident in British Columbia involving, “at least two vehicles” (''IVA'', s 174(2)), in specified circumstances.  

Indemnification is also provided for, “reasonable expenses incurred by the insured for loss of use in relation to the eligible vehicle in respect of the following: (a) hiring passenger directed vehicles; (b) using public transportation; (c) renting a substitute vehicle that is similar to the eligible vehicle, with the corporation's approval; [and] (d) using other alternative transportation with the corporation's approval” (''BVDCR'', s 18(2)), though this indemnification for passenger directed vehicles and public transportation does not apply if these expenses, “exceed expenses that would have been indemnified for renting a substitute vehicle that is similar to the eligible vehicle” (''BVDCR'', s 18(3)).

The basic theoretical principle behind third party liability insurance is that it is meant to indemnify the insured for claims that may be brought against them by someone else. Under the no-fault system, care for injuries is provided directly by the insurer to the injured party, as outlined above. However, there are still certain instances where an insured party may find themselves facing a claim from another party in an accident, such as when the insured causes non-vehicle property damage, or is driving outside BC in a jurisdiction where the other party is entitled to sue.

This third party liability coverage, included as part of basic mandatory vehicle coverage, provides indemnity for this sort of property damage, as well as for injury or death that occurs in other jurisdictions in Canada or the United States, with certain specified exceptions (''IVR'', s 64). This indemnity for basic third party liability is capped at $200,000 for most vehicles, with higher limits for buses, taxis and limousines (''IVR'', Schedule 3, s 1(1.1)).

This portion of basic coverage covers ''non-vehicle property damage'' caused to the insured’s property by an uninsured (identified) motorist, in British Columbia (''IVA'', s 20). This insurance is capped at $200,000 (''IVR'', Schedule 3, s 9(1)).

The process for claiming under this section remains the same as under the old ICBC system, and involves the insured claimant applying to ICBC. Once this claim is sent, ICBC has the ability to settle in favour of the claimant or to require the claimant to take legal action (''IVA'', s 20(5)). See [[ICBC and Compulsory Coverage (12:X)|Part II, Section IX.D.i:]] of this manual (Uninsured Motorists or Unidentified Motorist Cases) for technical information on ICBC’s rights and obligations in this process.

This portion of basic coverage covers ''non-vehicle property damage'' caused to the insured’s property by an unidentified motorist (i.e. a hit and run case) in British Columbia. This coverage allows the insured party to bring a legal action against ICBC as a nominal defendant in order to obtain damages (''IVA'', s 24).

Finally, to proceed with the claim against ICBC as a nominal defendant, the claimant must give written notice to ICBC “as soon as reasonably practicable” and within six months of the accident (''IVA'', s 24(2)).

Inverse liability protection provides for compensation for vehicle loss or damage in situations where an insured is travelling in another jurisdiction in Canada or the United States whose laws do not otherwise allow the insured to sue for such compensation. The amount of compensation is, “an amount equal to the amount of damages the insured would have recovered if the insured had had a right of action” (''IVR'', s 147(2)). In practice, this would mean that the amount that can be recovered under inverse liability would be limited if the insured is found to be partially or fully at fault.

Compensation under this section is limited to, “the least of the following: (a) the cost of repairing the vehicle; (b) the declared value of the vehicle; (c) the actual cash value of the vehicle” (''IVR'', s 147(3)).

Section 148 of the ''IVA'' specifies coverage in situations where, “death or injury of an insured arises out of the operation on a highway in Nunavut, the Yukon Territory, the Northwest Territories or the United States of America of an unidentified or uninsured vehicle, other than an uninsured vehicle owned by or registered in the name of the insured or a member of the same household as the insured.”