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

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

Revision as of 17:48, 17 June 2016

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→‎B. Legislation
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''Insurance (Motor Vehicle) Act'' - Revised Regulations (1984), BC Reg 447/83 [IMVAR].  
''Insurance (Motor Vehicle) Act'' - Revised Regulations (1984), BC Reg 447/83 [IMVAR].  


Insurance (Vehicle) Act, RSBC 1996, c 231 [IVA].Insurance (Vehicle) Regulation, BC Reg 447/83 [IVR]. Motor Vehicle Act, RSBC 1996, c 318 [MVA].Motor Vehicle Act Regulations, BC Reg 26/58 [MVA Regulations]. Insurance Corporation Act, RSBC 1996, c 228. Limitation Act, RSBC 1996, c 266, s 3(2). NOTE: The Insurance (Motor Vehicle) Act [IMVA] and the Insurance (Motor Vehicle) Act   - Revised Regulations (1984) [IMVA Regulations] were amended and renamed the Insurance (Vehicle) Act [IVA] and Insurance (Vehicle) Regulation [IVR] respectively. The IVA  and IVR came into force and effect on July 1, 2007. Note that there are transitional provisions governing whether the provisions of the old Act, new Act, or both Acts apply to an individual claim. C.General The automobile insurance system in BC is comprised of “no fault” benefit claims and indemnification for claims in tort law. No fault benefits  are included as part of the basic (compulsory) insurance coverage offered by the Insurance Corporation of British Columbia (ICBC or “the  Corporation”) exclusively. As the name implies, payment of the no fault coverage is given regardless of whether or notany element of fault is attributed to the insured. Optional coverage above and beyond the basic coverage may be purchased from either ICBC or a private insurer under an optional insurance contract (“OIC”).  Claims for damages brought under tort law however do require the presence of a fault element  on the part of the defendant to be successful. The victim of the accident (e.g. a personal injury claimant) may
''Insurance (Vehicle) Act'', RSBC 1996, c 231 [IVA].
 
''Insurance (Vehicle) Regulation'', BC Reg 447/83 [IVR].  
 
''Motor Vehicle Act'', RSBC 1996, c 318 [MVA].
 
''Motor Vehicle Act Regulations'', BC Reg 26/58 [MVA Regulations].  
 
''Insurance Corporation Act'', RSBC 1996, c 228.  
 
''Limitation Act'', RSBC 1996, c 266, s 3(2).  
 
'''NOTE:''' The ''Insurance (Motor Vehicle) Act'' [IMVA] and the ''Insurance (Motor Vehicle) Act - Revised Regulations'' (1984) [IMVA Regulations] were amended and renamed the ''Insurance (Vehicle) Act'' [IVA] and ''Insurance (Vehicle) Regulation'' [IVR] respectively. The IVA  and IVR came into force and effect on July 1, 2007. Note that there are transitional provisions governing whether the provisions of the old Act, new Act, or both Acts apply to an individual claim.  
 
== C. General ==
 
The automobile insurance system in BC is comprised of “no fault” benefit claims and indemnification for claims in tort law. No fault benefits  are included as part of the basic (compulsory) insurance coverage offered by the Insurance Corporation of British Columbia (ICBC or “the  Corporation”) exclusively. As the name implies, payment of the no fault coverage is given regardless of whether or notany element of fault is attributed to the insured. Optional coverage above and beyond the basic coverage may be purchased from either ICBC or a private insurer under an optional insurance contract (“OIC”).   
 
Claims for damages brought under tort law however do require the presence of a fault element  on the part of the defendant to be successful. The victim of the accident (e.g. a personal injury claimant) may sue the other driver(s), the owner(s) of the insured car, manufacturer(s), automobile shop(s), municipal, insurer(s), or any other parties liable for the injury. Legislatively, there is no limitation on the maximumamount of damages that a court could award to a victim. However, case law and statute in the province may effectively cap certain heads  of damage, such as non-pecuniary damages. Where the necessary conditions are met, ICBC may indemnify the insured for all or part of the assessed liability. This means that where damages are awarded to a victim in an accident, ICBC will pay those damages instead of the party (i.e. the insured) who is at fault.
 
For  cases  involving a BC  resident  who  has  been  involved  in  an  out-of-province  accident,  private international  law  rules  apply.  Generally,  for  the  substantive  issues,  the  law  of  the  jurisdiction  where the accident took place will apply. For procedural matters, the rules of the trial court will apply.  It is important to determine whether the action is one that can be commenced in BC and whether the law of BC  applies.A  summary  of  out-of-province  insurer  qualifications,  service  procedures,  and jurisdictional considerations is listed in Section V, below. The Insurance  (Vehicle)  Act  [IVA]  and  the Insurance  (Vehicle)  Regulation  [IVR] form  a  code  governing most  aspects  of  auto  insurance  in BC  The  IVR  alone  runs  102  pages,  and  it  is  impossible  to give  a complete  summary  in  a  manual  such  as  this.  This  chapter is  only  a  guide  to  help  people  locate  the relevant sections of the IVA and IVR that they are likely to encounter.A few preliminary concepts, which will be of use in understanding this chapter, are discussed immediately below. 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.
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