Difference between revisions of "Optional ICBC Insurance (12:XI)"

{{REVIEWED LSLAP | date= August 2, 2022}}

'''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 Under the current legislation, it  has been replaced by Part 4 of the ''IVA'' (Optional Insurance Contracts) and Part 13 of the ''IVR'' (Optional Insurance Contracts).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''': 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 of persons, exclusions or risks or limits of coverage that are not in the insurance it extends” (''IVA'', s 61(2)).  

Section 61(1.2) of the ''IVR'' provides that an OIC may '''not''', in respect of third party liability insurance coverage:  

=== 1. Extended Third Party Legal Liability ===

Third Party Legal Liability insurance may be increased from the basic compulsory $200,000 (taxis and limousines require $300,000; buses  $500,000) to a greater amount. The exclusions and conditions that apply to the basic Third Party Legal Liability coverage (Part 6) also apply to this extended coverage. See [[ICBC and Compulsory Coverage (12:X)#10. Forfeiture of Claims and Relief from Forfeiture | Section X.B.10: Forfeiture of Claims and Relief from Forfeiture]] and [[ICBC and Compulsory Coverage (12:X)#11. Breach of Conditions and Consequences | Section X.B.11: Breach of Conditions and Consequences]].

This insurance is more limited than Comprehensive. It covers only loss or damage caused by fire, lightning, theft or attempted theft, windstorm, earthquake, hail, explosion, riot or civil commotion, falling or forced landing of an aircraft or part of an aircraft, rising water or the stranding, sinking, burning, derailment or collision of a conveyance in or on which a vehicle is being transported on land or water (''IVR'', s 150).

<blockquote>a) the cost of repair of the vehicle and its equipment;  

b) the actual cash value of the vehicle and its equipment; or  

c) the declared value of the vehicle and its equipment.</blockquote>

<blockquote>a) being under the influence of liquor or drugs so as to be incapable of proper control of the vehicle;  

b) being convicted for an offence under ss 249, 252, 253, 254, or 255 of the ''Criminal Code'';  

 

c) operating a vehicle when not authorized and qualified (''IVR'', s 55);  

 

d) using the vehicle in illicit trade, or to avoid arrest, or other police action (s 55);  

 

e) towing an unregistered, unlicensed trailer (s 55);  

 

f) permitting others to breach a condition (s 55);  

 

g) using a vehicle in a manner contrary to the insured person’s statement in their application for coverage, the result being a form of breach of condition. This happens most commonly in cases where coverage of a vehicle for “pleasure purposes” is applied for, and the vehicle is damaged when in fact being used to take the insured person to or from work (s 55 sets out the specifics);  

 

h) failing, without reasonable cause and to the prejudice of ICBC,

<blockquote>(i) to make a police report within 48 hours after the discovery of theft, loss, or damage;

(ii) to obtain a  police case file  number; and

(iii) to advise ICBC within seven days of making the report to the police of the circumstances of that loss or damage as well as the police case file number (s 136 (a)); and </blockquote>

i) failing, without reasonable cause and to the prejudice of ICBC, to comply with ss 67 or 68 of the ''MVA'', or similar provisions in the law of another Canadian or American  jurisdiction, relating to the duties of a driver directly or indirectly involved in an accident (''IVR'', s 136(b)). </blockquote>

<blockquote>a) the client can go through ICBC’s internal appeal procedure by asking the  adjuster to review their decision and, if there is no change, by asking the claims manager to review it. If the client is still not satisfied, the third step is to present the client’s case to an  appeal panel; or </blockquote>

<blockquote> b) the client can sue. This is commonly the most satisfactory course, particularly where the amount in issue is relatively small, as where the damage is about the same amount as the “deductible”. Such an action is not brought against ICBC under the policy, but against the driver (and owner, ''MVA'', s 86) whose negligence is said to have caused the accident. In such a case, that ICBC was not liable to pay the “deductible” to  its own insured does not relieve the negligent party from liability, assuming always that negligence can be established. </blockquote>

'''NOTE''': If ICBC denied liability to indemnify a person insured by it and that person is sued, ICBC is entitled to apply to the court to be joined as a third party (''IVA'', s 77(3)). Upon being made a third party, ICBC can then defend the action fully, despite its previous denial of  liability to indemnify the defendant (''IVA'', s 77(4)). In ''West v Cotton'' (1994), 98 BCL R (2d) 50 (SC), the third party, ICBC, conducted the defence of a defendant to whom it denied coverage and who did not participate in the  proceedings. Having succeeded in proving his claims, the plaintiff was not entitled to recover their costs, with one exception: that being against the third party. In this case, ICBC would have  suffered significant prejudice if it had been precluded from presenting its defences as third-party since the defendant did not demonstrate  any interest in maintaining the action.