Difference between revisions of "Insurance Benefits for Accident Victims"

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{{REVIEWEDPLS | reviewer = Janet Mackinnon and Krista Prockiw of ICBC |date= February 2019}} {{Dial-A-Law TOC|expanded = cars}}  
{{REVIEWEDPLS | reviewer = [https://www.icbc.com/ Krista Prockiw], ICBC|date= February 2024}} {{Dial-A-Law TOC|expanded = cars}}  
Being involved in a motor vehicle accident can have a serious impact on your health, as well as your wallet. '''Accident benefits''' and '''damages''' can help ease the financial burden.
Being involved in a motor vehicle accident can have a serious impact on your health, as well as your wallet. '''Insurance benefits''' can help ease the financial burden.


{| class="wikitable"
==Common questions==
|align="left"|'''Alert!'''
===What are “no fault” insurance benefits?===
On May 1, 2021 a law came into effect that changed how ICBC insurance works. A motor vehicle accident that occurs in BC after that date is covered by a new insurance model, called '''enhanced care'''. We're currently updating this content to reflect the changes. In the meantime, [https://www.icbc.com/insurance/products-coverage/Pages/basic-insurance.aspx visit ICBC's website for details].
'''“No fault” insurance benefits''' refers to support that’s available to all parties involved in an accident in British Columbia, regardless of who was responsible (“at fault”). The Insurance Corporation of British Columbia (ICBC), which provides universal auto insurance to British Columbians, uses a no fault insurance model, called “enhanced care.” Enhanced care is included in basic Autoplan insurance coverage. Everyone who owns a motor vehicle in BC must have this basic coverage from ICBC.
|}
 
==What you should know==
 
===Basic vehicle insurance is mandatory in BC===
Everyone who owns a motor vehicle in BC must have basic vehicle insurance from the Insurance Corporation of British Columbia (ICBC), called '''Basic Autoplan'''. You can choose to buy additional insurance coverage — from ICBC or a private insurance company.
 
====Autoplan includes basic third party liability coverage====
If you injure someone or damage their vehicle in an accident, your '''third party liability''' insurance will pay their claim up to the limit of your insurance. The minimum third party liability coverage you must have is $200,000. This insurance will also pay for most of the legal and investigative costs arising from an accident.
 
====Underinsured motorist protection====
'''Underinsured motorist protection''' means you don’t have to rely on other drivers having enough insurance coverage. Basic Autoplan insurance includes underinsured motorist protection up to $1 million.
 
Here’s how this type of coverage works. Say you are hurt in an accident that is the other driver’s fault, and that driver has only the basic $200,000 third party liability insurance. But your claim is worth $800,000. What happens? ICBC will pay your full $800,000 claim through your underinsured motorist protection.
 
====Protection against hit-and-run accidents====
All BC residents — even if they do not own a vehicle — are insured up to $200,000 by Autoplan if a hit-and-run driver kills or injures them.
 
===You can buy more than the basic insurance===
In motor vehicle accident cases, courts often award much more money (also called '''compensation''' or '''damages''') than $200,000. Sometimes they award $1 million or more — especially if the victim was seriously injured. You can choose to buy much more third party liability insurance than $200,000 — up to several million dollars. And most people do.
 
[https://www.icbc.com/autoplan/optional/Pages/Default.aspx You can buy this extra insurance from ICBC] or from a private insurance company. Buying more than the basic insurance is even more important if you drive to the United States. The costs of an accident (especially medical costs) can be much higher there.
 
Similarly, you can choose to increase the underinsured motorist protection from the $1 million in the Basic Autoplan coverage. ICBC offers optional coverage up to $2 million, $3 million, $4 million or $5 million.


===You can lose your insurance coverage if you break the law===
===What type of benefits are available through basic Autoplan coverage?===
You can lose your insurance coverage by:
There are a range of accident benefits available through ICBC’s '''basic Autoplan coverage'''. Included are enhanced accident benefits, which can help you with the cost of medical care and rehabilitation if you’re injured in an accident. You may also be entitled to wage loss benefits, if you’re unable to work due to an injury from a crash.


* driving while you’re prohibited from driving
Other benefits available to those hurt in an accident include:
* driving while your licence is suspended
* committing a crime while driving


Any of these acts may breach your third party liability insurance, and you may have to pay for any damage or injury you cause in an accident.
* financial support if you’re an unpaid caregiver
* personal care assistance if you can’t care for yourself
* a lump sum payment if you sustain a permanent impairment


===If you’re hurt in a motor vehicle accident===
For a closer look, see [https://www.peopleslawschool.ca/insurance-benefits-for-accident-victims/ the People's Law School page on insurance benefits for accident victims].
If you’re injured in a motor vehicle accident, there are two sources of compensation:


#no-fault accident benefits, and
===My car was totalled in a crash and the other driver was found to be 100% at fault. Can I sue them?===
#damages for losses if another person was at fault.
Generally, no. Under ICBC’s no fault insurance model, accident victims cannot sue the at fault driver for compensation. Instead, your own insurance will cover you. ICBC’s basic Autoplan insurance includes up to $200,000 of basic vehicle damage coverage. This covers repairs to your vehicle when the other driver is found to be at fault.  


====No-fault accident benefits are paid no matter who caused the accident====
ICBC also offers optional '''new vehicle protection coverage'''. With this coverage, if your vehicle isn’t repairable you’ll have the choice of:
'''No-fault accident benefits''' are available to almost everybody in BC who is injured in a motor vehicle accident — no matter who caused the accident.


Anyone who is in a vehicle licensed and insured in BC is eligible for accident benefits. So is a pedestrian or cyclist hit by a vehicle, if they or a member of their household has a BC driver’s licence or an Autoplan policy. The accident could occur in BC, elsewhere in Canada, or in the United States.
* replacing it with a new model
 
* replacing it with a different vehicle of equal value
You must meet the conditions of the insurance to get accident benefits. For example, if you were injured while driving without a valid driver’s licence, or while racing your car, ICBC will not pay you any accident benefits.
* taking a cash payout
 
====Accident benefits are limited====
'''Accident benefits''' help with medical care and wage loss. They include rehabilitation and medical expenses, as well as disability benefits for workers and homemakers. We explain these more fully shortly.
 
Accident benefits only provide limited coverage. They’re not designed to pay you for all the losses you may suffer from an accident, especially if you were seriously injured. You may also be entitled to additional damages for losses caused by the negligence of others, explained in the next section.
 
===Damages for losses if another person was at fault===
If another person was legally at fault for (or caused) the accident, you can also be paid '''damages''' for your losses. There are several types of damages. For example, you could be fully paid for the loss of your future earnings if you can’t work because of the accident. Or you may be paid for the pain and suffering the accident caused you; these are called '''non-pecuniary damages'''. (Note as of April 2019, [https://www.canlii.org/en/bc/laws/stat/rsbc-1996-c-231/latest/rsbc-1996-c-231.html#sec103_smooth the law in BC] limits the amount that can be awarded for pain and suffering for “minor injuries.”)
 
For more details, see our information on [https://dialalaw.peopleslawschool.ca/personal-injury-claim/ making a personal injury claim].
 
====You cannot collect twice for the same accident====
You cannot collect twice for the same loss. Accordingly, ICBC will subtract the accident benefits and other insurance benefits paid to you from any damages (or compensation) you receive arising from someone’s negligence.
 
==Common questions==


===Should I buy extra insurance coverage?===
===I bought car insurance from a private company. What do I do if I’m involved in a crash?===
With Basic Autoplan insurance, if you injure someone in an accident, your third party liability coverage will pay their claim up to $200,000. If someone you injure is awarded more than that amount, you may have to pay the rest out of your own pocket. That can lead to financial ruin. It’s a good idea to buy more insurance — for both third party liability and underinsured motorist protection.
If only your vehicle was damaged in the accident, report it to your private insurer. You’ll have to report it to ICBC as well if:


===What is covered by no-fault accident benefits?===
* there was an injury
No-fault accident benefits help with medical care and wage loss if you are injured in a motor vehicle accident, regardless of who is at fault. [https://www.icbc.com/brochures/Pages/injured-in-crash.aspx See the ICBC website for updated information on benefit amounts].
* another vehicle was involved
* there was damage to someone else’s property


====Rehabilitation and medical expenses====
An ICBC claims agent may need to negotiate with an agent from the private insurer, so it could take a bit longer than usual to settle the claim.
Accident benefits cover reasonable expenses for medical and rehabilitation services, up to $300,000. This can include chiropractic and physiotherapy treatments and nursing attendant care.


====Disability benefits for workers====
===I want to use my car to drive for a ride-hailing service. Do I need a special type of insurance?===
If you were working before the accident but were disabled in it and can no longer work, you can receive weekly disability benefits. Your benefits are based on 75% of your average gross weekly earnings (up to a maximum amount).
No. ICBC sells a blanket insurance certificate directly to the ride-hailing company, not individual drivers. This blanket insurance provides basic coverage to drivers, and is mandatory for ride-hailing companies. You and your passengers will be covered when:


{| class="wikitable"
* you have accepted a trip using the app
|align="left"|'''Tip'''
* you are en route to pick up a passenger
[https://dialalaw.peopleslawschool.ca/employment-insurance-benefits/ If you are eligible for employment insurance benefits], you should apply for them. ICBC will include these benefits to calculate the disability benefits owing to you — even if you do not collect your EI benefits.
* you are transporting a passenger
|}
====Disability benefits for homemakers====
If before the accident you looked after your family and home, and your injury makes you unable to perform most of your household tasks, you can get weekly homemaker benefits. These benefits continue for as long as your disability lasts or until you turn 65, whichever comes first.


===As a pedestrian, I was hurt when a car hit me. Can I qualify for accident benefits?===
This basic insurance includes coverage for enhanced accident benefits and third party liability of up to $1,000,000. See [https://www.icbc.com/insurance/commercial/ride-hailing ICBC’s website] for details.
Yes. If you are injured as a pedestrian or cyclist in an accident with a vehicle, you can get accident benefits if you:


* are named in an Autoplan insurance policy, or
===When does my insurance expire? Do I have until the end of the day to renew?===
* have a valid BC driver’s licence, or
You have until midnight on the expiry date to renew your insurance.
* are a member of the household of a person who is named in an Autoplan policy or has a valid BC driver’s licence.


===ICBC denied my claim. Can I appeal?===
==Explore further==
Yes. If you don't agree with an assessment or decision ICBC has made about your claim, you have options for disputing it. See the ICBC website for details.
{{PLSTipsbox
| text = '''Deeper coverage of insurance benefits'''<br>
For more, see [https://www.peopleslawschool.ca/insurance-benefits-for-accident-victims/ the People's Law School coverage of insurance benefits for accident victims].
}}


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Latest revision as of 22:55, 7 March 2024

This information applies to British Columbia, Canada. Last reviewed for legal accuracy by Krista Prockiw, ICBC in February 2024.
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Being involved in a motor vehicle accident can have a serious impact on your health, as well as your wallet. Insurance benefits can help ease the financial burden.

Common questions

What are “no fault” insurance benefits?

“No fault” insurance benefits refers to support that’s available to all parties involved in an accident in British Columbia, regardless of who was responsible (“at fault”). The Insurance Corporation of British Columbia (ICBC), which provides universal auto insurance to British Columbians, uses a no fault insurance model, called “enhanced care.” Enhanced care is included in basic Autoplan insurance coverage. Everyone who owns a motor vehicle in BC must have this basic coverage from ICBC.

What type of benefits are available through basic Autoplan coverage?

There are a range of accident benefits available through ICBC’s basic Autoplan coverage. Included are enhanced accident benefits, which can help you with the cost of medical care and rehabilitation if you’re injured in an accident. You may also be entitled to wage loss benefits, if you’re unable to work due to an injury from a crash.

Other benefits available to those hurt in an accident include:

  • financial support if you’re an unpaid caregiver
  • personal care assistance if you can’t care for yourself
  • a lump sum payment if you sustain a permanent impairment

For a closer look, see the People's Law School page on insurance benefits for accident victims.

My car was totalled in a crash and the other driver was found to be 100% at fault. Can I sue them?

Generally, no. Under ICBC’s no fault insurance model, accident victims cannot sue the at fault driver for compensation. Instead, your own insurance will cover you. ICBC’s basic Autoplan insurance includes up to $200,000 of basic vehicle damage coverage. This covers repairs to your vehicle when the other driver is found to be at fault.

ICBC also offers optional new vehicle protection coverage. With this coverage, if your vehicle isn’t repairable you’ll have the choice of:

  • replacing it with a new model
  • replacing it with a different vehicle of equal value
  • taking a cash payout

I bought car insurance from a private company. What do I do if I’m involved in a crash?

If only your vehicle was damaged in the accident, report it to your private insurer. You’ll have to report it to ICBC as well if:

  • there was an injury
  • another vehicle was involved
  • there was damage to someone else’s property

An ICBC claims agent may need to negotiate with an agent from the private insurer, so it could take a bit longer than usual to settle the claim.

I want to use my car to drive for a ride-hailing service. Do I need a special type of insurance?

No. ICBC sells a blanket insurance certificate directly to the ride-hailing company, not individual drivers. This blanket insurance provides basic coverage to drivers, and is mandatory for ride-hailing companies. You and your passengers will be covered when:

  • you have accepted a trip using the app
  • you are en route to pick up a passenger
  • you are transporting a passenger

This basic insurance includes coverage for enhanced accident benefits and third party liability of up to $1,000,000. See ICBC’s website for details.

When does my insurance expire? Do I have until the end of the day to renew?

You have until midnight on the expiry date to renew your insurance.

Explore further

Tip v3.jpg
Deeper coverage of insurance benefits
For more, see the People's Law School coverage of insurance benefits for accident victims.
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