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

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”).  

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. ([[Optional ICBC Insurance (12:XI)|See Section XI: Optional Insurance,]] below). '''If the insured is found legally liable, and no extended coverage has been purchased, they are responsible for payment of any claims in excess of the above limits.'''

As of September 16, 2019, ICBC introduced a new insurance category (blanket insurance certificate) for transportation network services (TNS) or ride-hailing companies such as Uber and Lyft. The blanket basic coverage 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 not for individual drivers and it is mandatory for ride-hailing companies.

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:

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.

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.

*the insured is operating the motor vehicle in connection with the business of a garage service operator;

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 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).

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 their 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.

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,

:(b) pay costs incurred for fire extinguishers, jacks or other necessary emergency equipment or supplies provided to the insured,

::(2) post-judgment interest under the Interest Act (Canada) or similar legislation of another jurisdiction

ICBC will ''not'' indemnify an insured for certain types of damage, including:

*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

*a general or special assessment, penalty or premium, payable under the ''Workers’ Compensation Act'' (British Columbia) or similar Act (''IVR'', s 72.1(1)(a)).

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:

Certain conduct by the insured or applicant can result in “forfeiture”, whereby the insured is deemed to have given up their 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:

:(a) an applicant for coverage 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 in it (s 75(a)(ii));

:(c) then 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 X.B.11: Breach of Conditions and Consequences]];

:(d) an insured makes a “wilfully false statement” with respect to the claim (s 75(c)).

:'''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), 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.

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)).

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 Insurance Corporation of British Columbia'' (1993), 25 CCLI (2d) 243 (BC Prov. Ct.), per Stansfield Prov. Ct. J.

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:

:(a) failing to comply with s 73 of the ''IVR'', to the prejudice of ICBC [[{{PAGENAME}}#7. Duties of the Insured| See Section X.B.7: Duty of Insured]]

:'''NOTE''': When the court determines who the principle driver is, it will consider the entire period covered by the insurance plan: see [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)].  

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:

:(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).