ICBC and Basic Coverage (12:III)

This information applies to British Columbia, Canada. Last reviewed for legal accuracy by the Law Students' Legal Advice Program on July 18, 2021.

NOTE: The following portion of this chapter is meant to serve as a basic primer covering some of the key principles of the new ICBC system, which applies to claims for accidents occurring on or after May 1, 2021. Given that this no-fault system is new as of May 1, 2021, there are still certain portions of it that are being clarified, or that may adapt with implementation.

Basic coverage is mandatory for all BC vehicles. Driving while uninsured is an offence (MVA, s 24(3)(a)) which carries a maximum penalty of a fine of up to $250 and/or imprisonment of up to three months (MVA, s 24(5)(a)). Driving an uninsured vehicle is also an offence (MVA, s 24(3)(b)) which carries a fine of at least $300 and no more than $2,000 and/or imprisonment for at least seven days and no more than six months (MVA, s 24(5)(b)).

The following is included as part of Basic Coverage. Note that this is meant to be a high-level explanation, and insured individuals should refer to their policy for more detail and up-to-date information.

A. Enhanced Accident Benefits: Overview

Enhanced Accident Benefits are provided as part of basic coverage, and are outlined under Part 10 of the Insurance (Vehicle) Act [IVA]. These benefits apply to accidents on or after May 1, 2021, “in which there is bodily injury caused by a vehicle” (IVA ss 113 and 114(1)). These benefits are awarded on a no-fault basis, which means that they are paid directly by the insurer to the insured, irrespective of the fault of the insured (IVA, s 117). This also means that, under the new system, there is no longer a right of action (an ability to bring a lawsuit for damages against the other party) for injury arising from a vehicle accident (IVA, s 115). There are a few limited exceptions to this bar on actions for injury from a vehicle accident, which are outlined in Section VII: When You Can Still Sue.

1. Entitlement to Enhanced Benefits for BC Residents versus Non-Residents:

BC residents are covered by Enhanced Accident Benefits for accidents in BC, and for accidents in other jurisdictions in Canada and the United States.

For non-residents involved in an accident within BC, or one outside of BC but involving a BC-registered vehicle, particular considerations may apply to determine eligibility. See s 119 of the IVA for more detail on entitlement to benefits in these circumstances.

2. Claim deadlines and Requirement to report promptly:

As a general rule, the insured has two years from the date of the accident within which to make a claim for Enhanced Accident Benefits (Enhanced Accident Benefits Regulation, BC Reg 59/2021, s 55(1), [EABR]). However, there are certain circumstances in which the deadline for making a claim may be measured differently. S 55 (1) of the Enhanced Accident Benefits Regulation sets out claim deadlines in specified circumstances. Please do not rely on this manual chapter as an authority for claim deadlines, and be sure to consult the regulation closely or speak with ICBC directly to confirm your deadline by which to make a claim, as it may change or may be case-specific.

Note that in order to access Enhanced Accident Benefits, the insured also has a duty to, “promptly notify the corporation of the accident” when an accident occurs (EABR, s 56(1)). If an insured fails to do so, “without reasonable excuse and to the prejudice of the corporation”, then benefits may be refused (EABR, s 56(2)). For this reason, it is important to not delay in reporting an accident to ICBC, as this may affect your ability to make a claim later.

Note that there may be other deadlines related to your Enhanced Accident Benefit claim not noted here.

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