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| Disputes between claimants and ICBC, and the reasons for the decision must be published (''IVR'', s 148.2(1.1) and ((2.1)). | | Disputes between claimants and ICBC, and the reasons for the decision must be published (''IVR'', s 148.2(1.1) and ((2.1)). |
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| == E. First Party Coverage Under Part 10 of the IVR ==
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| === 1. Inverse Liability and Uninsured or Hit and Run Accidents Outside British Columbia: Part 10, Division 1 of the ''IVR'' ===
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| ==== a) Section 147 Claims: Inverse Liability ====
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| ===== (1) What is Inverse Liability? =====
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| Inverse liability coverage is part of the basic insurance plan, which covers costs to vehicle repairs when an insured is involved in an accident out of British Columbia. More specifically, the basic compulsory coverage will pay for loss or damage to a BC vehicle resulting from an accident occurring '''outside BC'''. but in Canada or the U.S. if the insured does '''not''' have a right of action under the law of:
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| *the place where the accident happened; or
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| *the place where the person responsible for the accident is a resident (e.g. unidentified defendant following a hit and run collision).
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| ===== (2) Who is Covered? =====
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| Section 147 of the ''IVR'' has its own definition of “insured”, which includes:
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| :(a) the person named as an owner in an owner's certificate or if deceased, their personal representative;
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| :(b) a person who can provide written proof that they are the beneficial owner of a commercial vehicle described in an owner's certificate; or
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| :(c) the renter of a vehicle described in an owner's certificate.
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| ===== (3) What is Covered? =====
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| “Loss or damage” in this section means damage to the vehicle and does not include compensation for medical or rehabilitation costs. Compensation is to the extent to which the insured would have recovered if they had a right of action. In other words, ICBC will pay to the extent that the other driver is found liable (''IVR'', s 147). However, this amount is limited to the lesser of the cost of the vehicle repair, the declared value of the vehicle, or the actual cash value of the vehicle.
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| ===== (4) Dispute Resolution =====
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| If the insured is found to be at fault or partially at fault, they will be responsible for paying for the remaining costs of repair to the vehicle, unless the insured person purchased collision coverage (see [[Optional ICBC Insurance (12:XI)#(2) Own Damage Coverage | Section XI.B.2.1: Collision]]). If a dispute between the claimant and ICBC arises under this section, it must be arbitrated. Once the arbitrator adjudicates the dispute, the reasons for the decision must be published.
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| ==== b) Section 148 Claims: Accidents in Nunavut, Yukon, Northwest Territories or the U.S.A. ====
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| This section deals with the scenario of a person having a motor vehicle accident in Nunavut, the Yukon, or Northwest Territories, or the U.S. that involves an uninsured or unidentified motorist.
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| ===== (1) Who is Covered? =====
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| A person involved in a motor vehicle accident may be entitled to compensation under section 148(2) of the ''IVR'', if that person:
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| *is a person named as an owner in the owner’s certificate, or a household member of the person named as an owner in the owner’s certificate;
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| *suffers death or injury in the Nunavut, Yukon, Northwest Territories or the U.S.; '''and'''
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| *the vehicle responsible is an unidentified or uninsured vehicle.
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| ===== (2) How Much is the Coverage? =====
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| 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)).
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| ===== (3) Exclusion or Limitation of Liability by ICBC =====
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| If a claim is made under this section, the claimant must be sure to comply with the requirements set out in s 148 of the ''IVR''. ICBC will not be liable (i.e. ICBC will not compensate the claimant) in the following situations:
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| *if the insured has a right of recovery under an unsatisfied judgment;
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| *if the insured was operating a vehicle without the consent of the vehicle’s owner;
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| *if the insured fails to comply with s 148(4)b) '''to the prejudice of ICBC''' (see immediately below); '''or'''
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| *if the insured fails to comply with s 148(5) (see immediately below).
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| ===== (4) Insured’s Obligations Under Section 148(4) and (5) of the ''IVR'' =====
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| Under section 148(4)(b) of the ''IVR'', the insured:
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| *must file a copy of the originating process with ICBC within 60 days of the action commencing; '''and'''
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| *must not settle a claim without the written consent of ICBC
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| Under s 148(5) of the ''IVR'', the insured (or their representative) must:
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| *for accidents involving an '''unidentified''' vehicle, report the accident, within 24 hours of the accident, to the police, or the administrator of any law respecting motor vehicles;
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| *file with ICBC, within 28 days of the accident, a statement under oath that:
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| ::(a) the insured has a cause of action arising out of the accident against the owner or driver of an '''unidentified or uninsured''' vehicle and
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| ::(b) setting out the facts in support of that statement; '''and'''
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| ::(c) at ICBC’s request, allow ICBC to inspect the insured’s motor vehicle that was in the accident.
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| :'''NOTE:''' Payments made under s 148 will be deducted from the amount aninsured is entitled to under Parts 6 or 7 of the ''IVR'' (s 148(6) and (7)). Also, ICBC will not be liable to pay any benefit, indemnity, or compensation payable from another source, including: Workers Compensation, Employment Insurance, and any government bodies (s 106(1)).
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| ===== (5) Dispute Resolution =====
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| Any dispute between the claimant and ICBC under this section must be arbitrated. The arbitrator who adjudicates the dispute must publish the reasons for the decision (''IVR'', s 148(8)).
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| === 2. Underinsured Motorist Protection (UMP): Part 10, Division 2 of the ''IVR'' ===
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| ==== a) What is UMP Coverage? ====
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| $1 million of UMP coverage is part of the basic compulsory coverage motorists have with ICBC. It provides compensation against bodily injury or death for the victim of an accident caused by a motorist who does not carry sufficient insurance to pay for the claims. The maximum coverage under UMP is $2,000,000 (which an insured must pay an extra premium to purchase) for each insured person (Schedule 3, s 13 of the ''IVR''). This limit includes claims for prejudgment and post-judgment interest and costs. See section 148.1(5).
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| ==== b) Prerequisites for UMP Coverage ====
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| Generally, UMP coverage is available where an insured’s death or injury is caused by the operation of a vehicle operated by an underinsured motorist, and occurs in Canada or the U.S.
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| If an insured is making a claim for UMP coverage in the relation to a '''hit and run''' accident, there are additional requirements that need to be met. Under section 148.1(4), the following criteria must also be met:
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| *the accident must occur on a highway; and
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| *the accident must have '''physical''' contact between the insured vehicle and the unidentified vehicle, '''if''' it occurred in Nunavut, the Yukon Territory, the Northwest Territories, or the United States.
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| ==== c) Who Is Covered? ====
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| Section 148.1 of the ''IVR'' has its own definition of “insured”. Note that the insured need not be in their car to be eligible for compensation. Under this section, “insured” includes, but is not limited to:
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| *a person named in the owner’s certificate and members of their household;
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| *any person who is an occupant of the insured vehicle;
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| *any person with a valid BC “driver’s certificate” (i.e., driver’s license) and members of their household; and
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| *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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| ==== d) Who is Not Covered? ====
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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:
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| *the insured’s vehicle was in fact not licensed and the insured had no reasonable grounds to believe it was; or
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| *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).
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| ==== e) UMP Coverage and Accidents Outside B.C. ====
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| For accidents occurring outside BC, the '''law of the place where the accident occurred determines the legal liability of an underinsured motorist''', whereas the '''amount''' of the UMP claim is determined by BC law. See section 148.2(6) of the ''IVR''.
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| UMP protection does not apply in a jurisdiction where the right to sue for injuries caused by a vehicle accident is barred by law (''IVR'', s 148.2(4)). UMP coverage does not apply to vehicles used as buses, taxis, or limousines (s 148.4).
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| ==== f) Forfeiture and Breach of Conditions ====
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| Under section 148.2(5) of the ''IVR'', the same provisions that apply to those outlined under Third Party Legal Liability also apply here (see [[{{PAGENAME}}#10. Forfeiture of Claims and Relief from Forfeiture | Section X.B.10: Forfeiture of Claims and Relief from Forfeiture]] and [[{{PAGENAME}}#11. Breach of Conditions and Consequences | Section X.B.11: Breach of Conditions and Consequences]], above.). An award otherwise available under UMP will be reduced by any amount forfeited by a breach outlined in s 55.
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| ==== g) Dispute Resolution ====
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| Any dispute between the claimant and ICBC must be arbitrated. An arbitrator who adjudicates a dispute under this section must publish the reasons for the decision (''IVR'', s 148.2(1.1) and ((2.1)).
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| {{LSLAP Manual Navbox|type=chapters8-14}} | | {{LSLAP Manual Navbox|type=chapters8-14}} |