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Difference between revisions of "ICBC and Compulsory Coverage (12:X)"
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ICBC and Compulsory Coverage (12:X) (view source)
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{{REVIEWED LSLAP | date= August | {{REVIEWED LSLAP | date= August 1, 2023}} | ||
{{LSLAP Manual TOC|expanded = ICBC}} | {{LSLAP Manual TOC|expanded = ICBC}} | ||
{{LSLAP 12 Old System Notice}} | {{LSLAP 12 Old System Notice}} | ||
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. See [[Optional ICBC Insurance (12:XI)|Section XI: Optional Insurance]], below. 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. See [[Optional ICBC Insurance (12:XI)|Section XI: Optional Insurance]], below. Note that 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 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”). | ||
'''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''. | ||
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:(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 | :(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, | :(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 | ::(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. | ::(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). | 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: | For the purposes of s 65 only, “insured” includes the following: | ||
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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. In addition, non-household members such as employees who may be driving the insured’s vehicle for more than 12 times a year will also be required to be listed at the time of purchasing the policy. The additional members listed will be factored into the calculation for the premium paid. | 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. In addition, non-household members such as employees who may be driving the insured’s vehicle for more than 12 times a year will also be required to be listed at the time of purchasing the policy. The additional members listed will be factored into the calculation for the premium paid. | ||
If a household member or non-household member, who was not listed on the principal’s policy, gets involved in an accident, ICBC will have the right to impose a financial penalty on the principal’s policy and the principal may also be subjected to a higher premium rate when renewing the policy in the future. | If a household member or non-household member, who was not listed on the principal’s policy, gets involved in an accident, ICBC will have the right to impose a financial penalty on the principal’s policy and the principal may also be subjected to a higher premium rate when renewing the policy in the future. | ||
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=== 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 (i.e., s 65 indemnification) outlined above, ''IVR'' ss 67 and 69 states that ICBC may also pay for: | ||
:(a) reimburse 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, | :(a) reimburse 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) pay costs incurred for fire extinguishers, jacks or other necessary emergency equipment or supplies provided to the insured, | :(b) pay costs incurred for fire extinguishers, jacks or other necessary emergency equipment or supplies provided to the insured, | ||
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ICBC will ''not'' indemnify an insured for certain types of damage, including: | ICBC will ''not'' indemnify an insured for certain types of damage, including: | ||
*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 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 | ||
*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 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 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 | ||
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:'''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. | :'''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. | ||
In addition, the ''Family Compensation Act'', RSBC 1996, c 126 [FCA], creates a statutory right for claims to be brought by the surviving spouse, parent, grandparent, or child of the deceased, in some cases appropriately as against ICBC. | In addition, the [https://www.bclaws.gov.bc.ca/civix/document/id/complete/statreg/00_96126_01 ''Family Compensation Act'', RSBC 1996, c 126 [FCA]], creates a statutory right for claims to be brought by the surviving spouse, parent, grandparent, or child of the deceased, in some cases appropriately as against ICBC. | ||
The ''FCA'' provides a statutory scheme for fatal accident compensation that abrogated the common law rule that no one has a cause of action in tort against a person who has wrongfully caused the death of a third person (see [http://www.canlii.org/en/bc/bcsc/doc/2013/2013bcsc1168/2013bcsc1168.html?autocompleteStr=mcleod%20v%20ga&autocompletePos=5 ''Gaida Estate v McLeod''], 2013 BCSC 1168 (CanLII)). | The ''FCA'' provides a statutory scheme for fatal accident compensation that abrogated the common law rule that no one has a cause of action in tort against a person who has wrongfully caused the death of a third person (see [http://www.canlii.org/en/bc/bcsc/doc/2013/2013bcsc1168/2013bcsc1168.html?autocompleteStr=mcleod%20v%20ga&autocompletePos=5 ''Gaida Estate v McLeod''], 2013 BCSC 1168 (CanLII)). | ||
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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: | 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 (see [[{{PAGENAME}}#10. | Section X.D.2.c]]): Police Report Requirements); | *to a claimant, under s 24 of the ''IVA'', who fails to comply with section 107(1) of the ''IVA'' without reasonable cause (see [[{{PAGENAME}}#10. | Section X.D.2.c]]): Police Report Requirements); | ||
*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)). | *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)). | ||
=== 4. Forfeiture and Breach of Conditions === | === 4. Forfeiture and Breach of Conditions === | ||
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===== (2) How Much is the Coverage? ===== | ===== (2) How Much is the Coverage? ===== | ||
ICBC’s liability (i.e. the payout) is limited to $200,000 (see Schedule 3, s 11 of the ''IVR''). Payments are subject to adjustment if recovery or partial recovery is made from another party (''IVR'', s 148(2)). | ICBC’s liability (i.e., the payout) is limited to $200,000 (see Schedule 3, s 11 of the ''IVR''). Payments are subject to adjustment if recovery or partial recovery is made from another party (''IVR'', s 148(2)). | ||
===== (3) Exclusion or Limitation of Liability by ICBC ===== | ===== (3) Exclusion or Limitation of Liability by ICBC ===== | ||
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*a person named in the owner’s certificate and members of their household; | *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 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 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. | *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. | ||
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There are certain people who are not entitled to UMP coverage. Section 148.1(3) of the ''IVR'' describes when ICBC will not be liable. The following are most relevant, whereby coverage is denied if: | There are certain people who are not entitled to UMP coverage. Section 148.1(3) of the ''IVR'' describes when ICBC will not be liable. The following are most relevant, whereby coverage is denied if: | ||
*the insured’s vehicle was in fact not licensed and the insured had no reasonable grounds to believe it was; or | *the insured’s vehicle was in fact 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 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 B.C. ==== | ==== e) UMP Coverage and Accidents Outside B.C. ==== | ||
