Optional ICBC Insurance (12:XI)

A. Introduction to OICs

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 Under the current legislation, it has been replaced by Part 4 of the IVA (Optional Insurance Contracts) and Part 13 of the IVR (Optional Insurance Contracts).

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, limit nevertheless limit the extended coverage as follows:

• by prohibiting a specified person or class of persons from using or operating the vehicle;
• 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.

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:

• the loss of the vehicle;
• damage to the vehicle; or
• 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:

• 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.

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 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)).

B. Types of OICs

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 Section II.B.10: Forfeiture of Claims and Relief from Forfeiture and Section II.B.11: Breach of Conditions and Consequences, above.

2.Own Damage Coverage Own Damage protection is provided by Collision, Comprehensive, or Specified Perils coverage. It covers loss or damage sustained to the vehicle named in the owner’ s certificate. a)Types of Own Damage Coverage (1)Collision This insurance covers loss or damage to the insured vehicle resulting from upset or collision with another object, including the ground or highway, or impact with an object on or in the ground. This type of insurance is available with a wide choice of deductibles (IVR, s 150). (2)Comprehensive This insurance covers loss or damage from any cause other than collision or upset. In addition to the Specified Perils listed below, this includes vandalism, malicious mischief, falling or flying objects, missiles, and impact with an animal. Comprehensive coverage is subject to various deductibles (IVR, s 150). (3)Specified Perils 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). b)Limit on Liability The limit on the amount of indemnity payable is determined, by whichever of the following is lesser (IVR, s 169 & Schedule 10 s 5):