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Difference between revisions of "ICBC and Optional Autoplan Insurance (12:XI)"
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ICBC and Optional Autoplan Insurance (12:XI) (view source)
Revision as of 02:43, 6 August 2017
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Optional Insurance Contracts (“OICs”) are optional coverage that any person can purchase at his or her discretion. The following are '''some''' of the '''types''' of coverage, over and above the Basic Compulsory Coverage, that may be purchased at the owner’s option from a private insurance company. The term OIC includes, but is not limited to policies providing coverage for excess third party liability, excess own vehicle damage, excess UMP coverage, and excess no-fault income replacement. | Optional Insurance Contracts (“OICs”) are optional coverage that any person can purchase at his or her discretion. The following are '''some''' of the '''types''' of coverage, over and above the Basic Compulsory Coverage, that may be purchased at the owner’s option from a private insurance company. The term OIC includes, but is not limited to policies providing coverage for excess third party liability, excess own vehicle damage, excess UMP coverage, and excess no-fault income replacement. | ||
:'''NOTE:''' Formerly, Part 9 of the IMVA Regulations (Extension Insurance) covered material under this part. Under the current legislation, it has been replaced by Part 4 of the IVA (Optional Insurance Contracts) and Part 13 of the IVR (Optional Insurance Contracts). | :'''NOTE:''' Formerly, Part 9 of the ''IMVA Regulations'' (Extension Insurance) covered material under this part. Under the current legislation, it has been replaced by Part 4 of the ''IVA'' (Optional Insurance Contracts) and Part 13 of the ''IVR'' (Optional Insurance Contracts). | ||
=== 1. Limiting and Excluding Coverage Under an OIC === | === 1. Limiting and Excluding Coverage Under an OIC === | ||
Section 61(1.1) of the IVA provides that an OIC that extends coverage in an existing certificate or policy may nevertheless '''limit''' the extended coverage as follows: | Section 61(1.1) of the ''IVA'' provides that an OIC that extends coverage in an existing certificate or policy may nevertheless '''limit''' the extended coverage as follows: | ||
*by prohibiting a specified person or class of persons from using or operating the vehicle; | *by prohibiting a specified person or class of persons from using or operating the vehicle; | ||
*by excluding coverage for a specified risk; or | *by excluding coverage for a specified risk; or | ||
*by providing different limits of coverage for different persons or risks or classes of persons or risks. | *by providing different limits of coverage for different persons or risks or classes of persons or risks. | ||
:'''NOTE:''' The above prohibition, exclusion, and limit are not binding on the insured unless the policy has printed on it in a prominent place and in conspicuous lettering the words “This policy contains prohibitions relating to persons or classes or persons, exclusions or risks or limits of coverage that are not in the insurance it extends” (IVA, s 61(2)). | :'''NOTE:''' The above prohibition, exclusion, and limit are not binding on the insured unless the policy has printed on it in a prominent place and in conspicuous lettering the words “This policy contains prohibitions relating to persons or classes or persons, exclusions or risks or limits of coverage that are not in the insurance it extends” (''IVA'', s 61(2)). | ||
In an OIC, an insurer may provide for further exclusions and limits to coverage for losses in respect of: | In an OIC, an insurer may provide for further exclusions and limits to coverage for losses in respect of: | ||
| Line 21: | Line 21: | ||
*the loss of use of the vehicle. | *the loss of use of the vehicle. | ||
Section 61(1.2) of the IVR provides that an OIC may '''not''', in respect of third party liability insurance coverage: | Section 61(1.2) of the ''IVR'' provides that an OIC may '''not''', in respect of third party liability insurance coverage: | ||
*prohibit a person who is living with and as a member of the family of the owner of the vehicle from using or operating the vehicle; or | *prohibit a person who is living with and as a member of the family of the owner of the vehicle from using or operating the vehicle; or | ||
*exclude or provide different limits of coverage for that person. | *exclude or provide different limits of coverage for that person. | ||
Despite any provision of the IVA or IVR, an insurer is not liable to an insured under an OIC for loss or damage in circumstances specified in the owner’s policy if: | Despite any provision of the ''IVA'' or ''IVR'', an insurer is not liable to an insured under an OIC for loss or damage in circumstances specified in the owner’s policy if: | ||
*the OIC relates to a vehicle that is not required under the ''Motor Vehicle Act'' to be licensed and insured (IVA, s 61(7)(a)); and | *the OIC relates to a vehicle that is not required under the ''Motor Vehicle Act'' to be licensed and insured (''IVA'', s 61(7)(a)); and | ||
*the owner’s policy is endorsed with a statement that the insurer is not liable to the insured for loss or damage in those circumstances (61(7)(b)). | *the owner’s policy is endorsed with a statement that the insurer is not liable to the insured for loss or damage in those circumstances (s 61(7)(b)). | ||
== B. Types of OICs == | == B. Types of OICs == | ||