Regulations To The Motor Vehicle Act (Bc) - Part 1

Front 1

Otto Carr: I understand that if I purchase physical damage coverage for my car and it is damaged in an accident, payment will be made on the basis of its "actual cash value" immediately prior to the accident. What does that mean?

Back 1

I.M. Smart: "Actual cash value" has a variety of meanings when used in insurance policies. In some insurance policies - such as your homeowner’s policy – it can mean the actual replacement cost of the lost or damaged property less the amount of depreciation charged for wear and tear, obsolescence; etc. However, when used in automobile policies in British Columbia, it means "the average market price a purchaser would have paid for an insured vehicle or other insured property immediately before loss or damage occurs to the vehicle or other property." [Emphasis Added]
Example: Otto, you said you paid $17,000 for the one-year old truck you purchased this week from a private party. In the event of a total loss, ICBC or such other insurer would attempt to determine what they could have purchased your automobile for immediately prior to its loss. This is generally not a difficult process. While insurance companies have access to price books published for the automobile industry, they may also choose to check with 2-3 automobile dealers to establish that price. When this process has been completed, you will be offered a settlement amount that reflects the "average market price" for your vehicle.

Front 2

Iona Carr: We use our new van to travel to and from our store. Other than that, it is used exclusively for transporting our family. Would our van be considered by ICBC to be used for commercial purposes?

Back 2

I.M. Smart: No. Vehicles are considered to have a "commercial use" only when they are used "for the delivery or carriage of goods." However, if you used your van to make deliveries or to pick up stock items sold by your business, it would then be considered as being used for commercial purposes. In such case, you will be charged a higher premium than would be required for a vehicle used exclusively for private and personal use.

Front 3

Otto Carr: When I asked another insurance broker what it would cost to purchase collision and comprehensive coverage from ICBC for our three-year old motor home, she said it depended on what the "declared value" of the motor home and its equipment was. What does "declared value" mean?

Back 3

I.M. Smart: The broker you talked to was right. ICBC does not have a standard rate class for motor homes. As a result, they use the value of the motor home and its equipment to determine the premium required for collision and comprehensive insurance coverages. The value you provide to ICBC is considered to be its "declared value." This amount will be indicated on the Certificate of Insurance.

Front 4

Iona Carr: I know that the requirements for insuring leased vehicles are different than for owned vehicles. When is an automobile considered to be a "leased automobile?"

Back 4

I.M. Smart: A leased automobile is one which is "rented under a written agreement for a period of not less than one month." [Emphasis Added] As we shall see shortly, the application for an owner’s certificate for such automobiles must include additional information respecting the lessor or owner of the vehicle.

Front 5

Otto Carr: Our son, Wilde lives at home and attends university. We bought him a three-year old car that he uses to commute to classes. I own the car and drive it occasionally. I will probably trade it in for another one for Iona when he finishes university next year. Wilde has had three speeding tickets over the past year. As I own and drive the car, would I qualify as its "principal operator?" This is

Back 5

I.M. Smart: You’re right, Otto. This is an important question. The "principal operator" is defined as "the person named by the applicant in an application for a new certificate as the person who will operate the vehicle described in the application for the majority of time the vehicle is operated during the term of the certificate." [Emphasis Added]

As a part of the rating process, ICBC bases the premium it charges for Autoplan coverages on the claim payment record of the applicant and principal operator of the vehicle...ie) the person who will use the vehicle the majority of the time. When such person has a history of chargeable claim payments that is worse than that of the applicant, ICBC will charge a higher premium for Autoplan coverages.

Note: This information is considered as "material" to the application for insurance. When such information is not correctly stated in the application, insurance coverage can be denied at the time of a claim. As such, it is critical that the information respecting the "principal operator" be truthfully stated on the application.

Front 6

Ima Carr: For years, our car has been registered in my husband’s name only. Our Autoplan broker told me not to worry about this ...ie) that as Otto’s spouse, I was fully covered while driving the vehicle. My close friend, Nelly Waters has been living in a common law relationship for the last 18 months with Larry Fender who owns the local hardware store. Would she be considered to be Larry's "spouse" under the Insurance (Motor Vehicle) Act?

Back 6

I.M. Smart: The Insurance (Motor Vehicle) Act defines a "spouse" as meaning "a person who is married to another person or who is living in a marriage-like relationship with that other person for at least 2 years immediately preceding the date on which the right to claim benefits or insurance moneys arose, and for the purposes of this definition, the marriage-like relationship may be between persons of the same gender."

The coverages provided under Autoplan to the registered owner of the automobile also extend to include their spouse. As such, there is generally no need to include both names on the certificate of insurance. Based on this definition, Iona’s friend Nelly Waters is not considered to be Larry Fender’s spouse.

Front 7

Iona Carr: Does this mean that Nelly would not be insured while driving a vehicle registered in Larry’s name?

Back 7

I.M. Smart: No, it doesn’t mean that at all. The coverages provided by Autoplan also extend to include any persons using the insured’s automobile with their consent.

Front 8

Iona Carr: Do spouses, common law partners and persons of the same gender who live in a marriage-like relationship with the person named on the certificate of insurance have the same coverage overall?

Back 8

I.M. Smart: That’s pretty much true. However, under Part 7. Accident Benefits, a common law spouse or person of the same gender who has not been living with the named insured in a marriage-like relationship at least two years is not entitled to a death benefit in the event the person named on the certificate of insurance should die as the result of an automobile accident.

Front 9

Otto Carr: When I registered our new car last week, I received a printed copy of my insurance. Is this the only document I need to prove that I purchased insurance?

Back 9

I.M. Smart: Yes, it is, Otto. However, when the transaction has been done manually in our office, you will receive what is referred to as an "interim owner’s certificate." That can happen, for example, when our internet connection to ICBC is malfunctioning. As the name implies, this document serves as evidence of insurance until a final copy has been provided by ICBC.

Front 10

Iona Carr: We just purchased a new Mustang convertible that we plan to drive only from May to August. Do we need to purchase insurance for the whole year?

Back 10

I.M. Smart: No. Generally, an owner’s certificate can "be issued for a term of not less than 3 months and not more than 12 months." However, when the plates have been removed from the vehicle or have expired, it is important that you purchase separate insurance for it while it is in storage. While I have dealt with some people who believe that unlicensed vehicles are insured under their tenant, homeowners or condominium insurance policy, that simply is not true!

Front 11

Iona Carr: We will also want to increase the third party liability coverage limit and add physical damage coverage for the Mustang. Can we purchase these additional coverages for these four months only as well?

Back 11

I.M. Smart: Yes, you can. Any "extension insurance issued under Part 9 in respect of a vehicle described in an owner’s certificate expires on the same day as the owner’s certificate." The premium you will be charged for this coverage will be based on this shorter period.

Front 12

Otto Carr: We just signed a three-year lease for a delivery van that is to be used in our business. Can we register this automobile in the name of our business?

Back 12

I.M. Smart: Yes, you can. However, the business name must be registered with the registrar of companies in Victoria. Proof of such registration must be shown to us at the time of the initial registration.
The application form will also include the following information:

(a) the name of the owner, followed by the word "lessor,"

(b) the name of the lessee of the vehicle, followed by the word "lessee," and

(c) the address in the Province of either the owner or the lessee of the vehicle. [Emphasis Added]

Reference: Section 8

Front 13

Otto Carr: Things can change during the year. For example, we could move and/or replace the insured automobile or change its use. Do we need to report these changes to ICBC?

Back 13

I.M. Smart: Yes, you do. The Insurance (Motor Vehicle) Act has set specific timeframes for reporting certain changes. You must notify ICBC within 10 days after (i) changing your address or (ii) replacing the vehicle described in the owner’s certificate.

Front 14

Otto Carr: Does this mean that I can transfer the plates from the vehicle covered by the owner’s certificate to another automobile which I have replaced it with.

Back 14

I.M. Smart: Yes, but this can only be done when the original vehicle has been traded or sold. Also, you must remember that the coverage for the replacement vehicle is limited to a maximum of 10 days only. You must contact your ICBC broker within that period to ensure that proper coverage is in place.

Front 15

Otto Carr: Currently, we use our van for private and pleasure purposes only. We’re thinking of using it to transport frozen fish products around the province that we hope to sell along the roadside. Would ICBC need to know about this change of (i) use and (ii) territory of operation?

Back 15

I.M. Smart: Absolutely. In fact, any change (i) in the use of the vehicle described in the owner’s certificate (for which a different vehicle rate class applies) or (ii) which results in the vehicle being primarily located or used in a different territory from that stated in the owner’s certificate must be reported to ICBC before such changes occur.

Front 16

Iona Carr: What coverages are included with my Autoplan Insurance?

Back 16

I.M. Smart: Basic Autoplan includes the following five insurance coverages:

Front 17

Iona Carr: I understand that I can buy additional coverage such as increased third party liability insurance or Own Damage coverage from ICBC at any time during the year. Will I receive a separate insurance policy for these additional coverages?

Back 17

I.M. Smart: No, an additional contract is not required.

The contract provisions for these additional coverages are contained in the Regulations...ie) section 51(Driver’s Policy), Part 9 (Extension Insurance) and Part 11(Special Policies and Coverages). In such cases, "coverage under the owner’s certificate is extended in accordance with the terms of the contract."

Front 18

Iona Carr: Does this also apply to Special Coverages I might purchase from ICBC...ie) rental vehicle policy; limited depreciation policy; vehicle travel protection policy; replacement cost policy; etc?

Back 18

I. M. Smart: No. In these cases, a separate policy will be issued for those coverages. The coverage provided "is subject to the terms and conditions set out in the special coverage form."

Front 19

Otto Carr: I’ve been told that the premium I am charged for Autoplan insurance will increase when ICBC has paid a claim on my behalf. Is this true in all cases?

Back 19

I.M. Smart: No, that’s not always true. Some claims paid by ICBC are not considered to be "chargeable claim payments"...ie) do not result in an increase in the premium you will be charged for your automobile insurance. However, should you have a liability or collision claim, any discount provided to you will be affected.

Front 20

(2) Iona Carr: Over the past few years, we have purchased additional liability and Own Damage coverages from a private insurer. That insurer paid three claims on our behalf over the past five years. If we decided to purchase those coverages from ICBC this year, would our previous claims experience be used to determine the premium we would pay?

Back 20

I.M. Smart: Yes. If the claims paid by your previous insurance company fall into the category of a "chargeable claim payment" as outlined in the Regulations, you will pay a surcharge to ICBC for your insurance. All insurance companies follow a similar procedure ...ie) the message is that you cannot escape your claims history by changing insurance companies.

Front 21

(3) Otto Carr: What types of claims fall within ICBC’s definition of a "chargeable claim payment?

Back 21

I.M. Smart: Claims paid by ICBC which could result in an increase in the amount you pay for automobile insurance fall into two categories: third party liability and Own Damage claims. However, there are some exceptions ... ie) not all payments made by ICBC for third party liability and own damage claims are considered to be chargeable claim payments.

Front 22

(4) Iona Carr: Would most third party liability claims paid by ICBC be considered as "chargeable claim payments?

Back 22

I.M. Smart: Yes. In most cases, you will receive a surcharge for third party liability claims paid by ICBC on your behalf. However, an exception will be made (i) in respect of an accident involving the contributory negligence of another person (ii) where 75% or more of the payment is recoverable from the other person.

Front 23

(5) Otto Carr: Let’s talk about Own Damage coverages for a minute. Are all claims paid under this optional coverage chargeable claim payments?

Back 23

I.M. Smart: Claims paid under the Specified Perils or Comprehensive coverage options are not chargeable claim payments. However, any payment made by ICBC under the Collision option will result in a premium surcharge.

Front 24

(6) Iona Carr: The company we leased our delivery van from recommended we purchase "Loss of Use" coverage. We think this makes sense because if our van was damaged in an accident, we would need to rent another one while it was being repaired. Would a claim such as this increase the premium we would pay for our insurance next year?

Back 24

I.M. Smart: A claim paid for Loss of Use is not a chargeable claim payment when the claim falls within the coverages provided under either of the Specified Perils or Comprehensive options. It is, however, chargeable when the Loss of Use coverage is claimed under the Collision option.

Front 25

(7) Otto Carr: We want to purchase the RoadStar Package for our car. We particularly like the loss of use, rental vehicle, and travel protection coverages it provides. Would a claim under this optional coverage be a chargeable claim payment?

Back 25

I.M. Smart: No. This also applies to claims paid under the Roadstar Plus Package

Front 26

(8) Iona Carr: In the past, we have been given the use of a "service loaner" by the repair garage we take our car to for servicing. Is there any coverage for this car should we damage it and, if so, would such an accident be a chargeable claim?

Back 26

I.M. Smart: If you have purchased Own Damage coverage from ICBC for your own automobile, this coverage extends to include physical damage caused to a temporary substitute motor vehicle. This vehicle can be commercial vehicle of less than 5000 kg. or private passenger vehicle. However, it is important to note that coverage is provided for this substitute automobile only in the event the insured’s own automobile cannot be used because "it is broken down, is being repaired or serviced, is lost or destroyed or has been sold, but does not include a motor vehicle owned or leased to an insured except, in the case of a leased motor vehicle, it may include a motor vehicle owned by a lessor."

Front 27

(9) Otto Carr: We’ve been told that our Autoplan insurance provides coverage should we be injured or killed in an automobile accident. Can you tell us (i) what these coverages are, and (ii) if we use them, are they considered to be chargeable claim payments?

Back 27

I.M. Smart: You heard right. ICBC’s basic Autoplan insurance includes coverage for bodily injuries sustained by you in an automobile accident. This coverage may be claimed under either or a combination of the following:

Part 7- Accident Benefits;
Hit and Run Accidents occurring on a highway;
Part 10 - Division 2: Underinsured Motorist Protection.
Any clam payments made to you under these Parts are not chargeable claim payments.

Front 28

(10) Iona Carr: Are there any other circumstances when the amount of the claim paid by ICBC will not be considered to be a chargeable claim payment?

Back 28

I.M. Smart: Yes. In some cases, such as those involving bodily injury, it may take a long time to settle a claim against the insured. In such cases, ICBC agrees not to consider the amounts paid after a prolonged period to be chargeable claim payments. Specifically, a surcharge will not be applied:

(i) for accidents that occurred more than 48 months before the date on which a new certificate has been applied for and the first payment was made not more than 12 months prior to such application; or

(ii) for accidents that occurred more than 50 months before the renewal date of a certificate and the first payment was made not more than 14 months prior to such application.

In other words, when the first claim payment is made in accordance with the above conditions, the insured is considered to have satisfied the three years claims free requirement...ie) to no longer be subject to the surcharge which otherwise would have been applied had the application been made or renewal processed prior to this time.

Front 29

(11) Otto Carr: Let’s assume that I have a chargeable claim. Would ICBC apply a surcharge to my insurance even when the payment is for an insignificant amount ...ie) $50 or $75?

Back 29

I.M. Smart: ICBC reserves the right to apply a surcharge for all chargeable claim payments in excess of $10.

Front 30

Iona Carr: How does ICBC keep track of the chargeable claims it pays on my behalf?

Back 30

I.M. Smart: All chargeable claim payments are maintained in your own personal "claim payment record." This record is reviewed prior to each renewal to determine if any chargeable claim payments have been made on your behalf since the certificate was last issued or renewed.

Front 31

Otto Carr: As I understand it, ICBC will do a scan of previous chargeable claim payments made on my behalf when determining how much I will pay for my insurance for a specific vehicle. How does this system work?

Back 31

I.M. Smart: That’s a good question. ICBC will conduct a scan of your claim payment record to determine your position on the claim-rated scale which, as you can probably imagine, determines how much you will be charged for your insurance.
On new applications, the period covered by the scan is based on the date of application. However, on renewals this scan is done two months prior to the expiry of the owner’s certificate ...ie) in time for renewals to be sent to vehicle owners well in advance of their expiry date.

There are four scan periods, ranging from 1- 4 years. These are referred to as "scan periods." The longer you are able to go without having a chargeable claim, the less you will pay for your insurance.

Front 32

Iona Carr: We’ve been talking about claims we could have which could result in an increase in the premium we pay to ICBC. It’s my guess that the basic rate for Autoplan insurance has a lot to do with the type and use of the vehicle itself. Is that right?

Back 32

I.M. Smart: You’re right. There are three factors concerning the vehicle itself that ICBC uses to arrive at the amount they refer to as the "base rate premium" charged for Autoplan coverages. These are:

vehicle rate class ...ie) the Nissan Sentra you use as your family car will be assigned a different vehicle rate class than the delivery van you use in your business. ICBC has approximately 65 vehicle rate classes which include everything from private passenger automobiles to airport buses to farm tractors to golf carts, etc.
use of the vehicle ...ie) you will pay more for insurance on vehicles used in your business than you would for a similar vehicle used for private and pleasure purposes only.
territory ... ie) where the vehicle is principally used or, in some cases, where it is primarily located when not in use. ICBC has divided the province into 15 territories. The rates vary between these territories and are based primarily on ICBC’s claims experience in each of them.

Front 33

(1) Iona Carr: We just received notice from ICBC that they have made a chargeable claim payment on our behalf. This will result in a significant increase in our insurance premium. We don’t agree that the payment they made qualifies as a chargeable claim payment. Is there anything we can do to get ICBC to look at this again?

Back 33

I.M. Smart: According to the Regulations, ICBC will provide

you with written notice when they have made a chargeable claim payment on your behalf. If you wish to dispute this payment ...ie) have this claim payment removed from your claim payment record, you must make such request in writing within 60 days after being so advised.

Front 34

(2) Otto Carr: That’s all very fine but the insurance for our Nissan Sentra is due in three weeks. What can we do about this surcharge on our insurance if ICBC has not made a decision by then?

Back 34

I.M. Smart: You will be required to pay the premium as stated on your renewal certificate.

Front 35

(3) Iona Carr: Meanwhile, who at ICBC is actually reviewing our request?

Back 35

I.M. Smart: When your request has been received by ICBC, a Discount Review Committee consisting "of no less than 3 members appointed by the corporation from among its staff" will review your request and make a recommendation. There are really only two decisions they can make ...ie) to keep or remove the chargeable claim payment from your claim payment record. If the committee decides in your favour, any excess premium paid on the renewal of the insurance for your Nissan Sentra will be returned to you.

Front 36

Iona: I plan on selling my 2001 Ford Escort and replacing it with an older car. I really don’t need a new car to do shopping and other errands. I expect that I should be getting a refund. How does ICBC deal with the matter of refunds when one vehicle is replaced with another one?

Back 36

I.M. Smart: ICBC is authorized (i) to charge a higher premium, if warranted, or (ii) to make a refund when one vehicle has been replaced with another one or when the use or territory in which the vehicle is primarily used or located changes.

Front 37

(1) Otto Carr: Our son, Gregg recently moved to Alberta. Last Friday, he purchased Alberta insurance. Meanwhile, the coverage provided by ICBC will not expire for another four months. He called home last night asking what he should be doing to get a refund from ICBC?

Back 37

I.M. Smart: That’s a good question. A lot of people don’t know what to do in such situations. To obtain his refund, Gregg will need to do the following three things:

return the owner’s certificate;
return the licence plates;
complete the appropriate cancellation form.
In the event the licence plates have been lost or destroyed, Gregg will need to complete a lost plate declaration.

Front 38

(2) Iona Carr: How is the amount of the refund Gregg will receive determined?

Back 38

I.M. Smart: The amount of the refund to Gregg will be calculated on a pro-rata basis, less a $30 cancellation fee.

Note: When the cancellation is for a compulsory special coverage ...eg) a vintage motor vehicle policy; garage automobile policy; etc., the amount of the refund shall be calculated on a pro-rata basis less the amount of the minimum premium specified on the special coverage form. The cancellation of a temporary operation permit and binder for owner’s interim certificate of insurance is calculated on a pro-rata basis less $20.

Front 39

(3) Iona Carr: This year, Otto and I plan to vacation in Mexico for 2-3 months. We will be driving our 1998 Road Trek motor home. Our Autoplan broker told us that ICBC insurance was valid only when we were travelling in Canada and the United States. Is that true?

Back 39

I.M. Smart: Yes, that’s right. You will need to purchase separate insurance from a Mexican insurer. Specialty insurance brokers located in Canada and the United States can help you purchase this insurance prior to crossing the border into Mexico.

Front 40

(4) Otto Carr: If our ICBC coverage is no good in Mexico, can we make an application to ICBC for a refund for the days we are actually travelling there?

Back 40

I.M. Smart: Yes you can. This refund can be claimed when the

vehicle has been used in any jurisdiction where there is no coverage provided by ICBC ...eg) in Mexico, Europe, Asia, etc. However, there are a couple of conditions, specifically:

no refund will be provided for periods of less than one month; and
satisfactory evidence must be provided to ICBC indicating that the vehicle was in such jurisdiction for the period for which the refund is being claimed.
requirement can be satisfied by way of a stamped passport or simply by providing gas and accommodation receipts for the period being claimed.

Front 41

Iona Carr: I have heard of people waiting for three or four months to receive their refund. Is that normal?

Back 41

I.M. Smart: No, that’s not normal. You should be receiving your refund within 60 days of applying for it. This applies to all refunds we have discussed in this Section.

If, through no fault of your own, it takes longer than that, ICBC will add interest at a rate of 1% per month compounded monthly (12.68% per year). This interest will be paid only for the period in excess of 60 days. In other words, if the refund is processed on the 72nd day after the request has been made, ICBC is obligated only to pay interest for the 12-day period starting with the 61st day.

As a matter of interest, you will normally receive any refund within 7 -10 days after the date the transaction has been completed.

Front 42

Otto Carr: Last year, we changed banks. Three of the cheques we used to pay our bills were returned to us NSF. All three of the firms added a service charge to their next billing. Does ICBC apply a service charge for cheques that are not honoured by the financial institution on which they are written?

Back 42

I.M. Smart: Yes, ICBC does apply a service charge of $18 for all NSF cheques.

Any cheque upon which is marked "pursuant to clearing rules, this item must not be cleared again unless certified" or other words indicating payment has been refused, shall constitute evidence that payment was not made.

Front 43

Iona Carr: Our son, Rusty will be buying a car soon. What factors will ICBC use to determine how much he pays for Autoplan insurance?

Back 43

I.M. Smart: When purchasing a new certificate, ICBC will use the following criteria to determine the premium to be charged:

the base rate premium for the vehicle;
the claim payment record of the applicant and of the principal operator of the vehicle; and
the number of years the principal operator has held a driver’s licence.
At the time of the application, the applicant must provide both their driver’s licence number and that of the principal operator of the vehicle, if applicable.

Front 44

(1) Otto Carr: I just bought a half-ton truck which I plan to use for hauling garbage, leaves, dirt, etc for our home and yard. Six months ago, I had a chargeable claim with our car. Can ICBC use that claim payment when determining the premium I will pay to insure my truck?

Back 44

I. M. Smart: No ... "where a chargeable claim payment is currently being used to determine the premium for an existing certificate, the corporation shall not use the same payment to determine the premium payable for a new certificate." [Emphasis Added]

Front 45

(2) Otto Carr: Let’s suppose I cancelled the insurance on my car and renewed it two weeks later. Would ICBC use a chargeable claim payment resulting from the use of that car to determine what I would pay for a new certificate?

Back 45

I.M. Smart: Yes. When a new certificate is provided for a vehicle within 30 days of it being previously insured in the applicant’s name, ICBC can use the chargeable claim payment applying to the existing certificate ...ie) the one previously in effect, to determine the premium for the new certificate.

Front 46

(3) Otto Carr: Let’s suppose that when I purchased insurance for my truck that ICBC used a chargeable claim payment for an existing vehicle for which I was already paying a surcharge. In this case, I would effectively be paying the surcharge twice. I’m sure that’s happened before. What would ICBC do in such situations?

Back 46

I.M. Smart: If this were to happen, ICBC would "recalculate the position on the claim-rated scale for the existing certificate without reference to the same chargeable claim payment." You will receive a refund when the amount of the difference is greater than $5.

Front 47

(1) Otto Carr: Our daughter, Redd will be moving from Alberta to BC next month. Presently, her car is insured by a private insurance company. On October 11, two years ago, she was responsible for an accident in Alberta. The claim was settled just last week. From what I understand about automobile insurance in BC, a chargeable claim payment is recorded as being made on the date of the first payment. Does ICBC use the same approach when attaching a date to claims paid by other insurers...ie) how will ICBC record Redd’s claim on her claim payment record?

Back 47

I.M. Smart: That’s an important question because it could have a significant effect on the cost of Redd’s insurance if she was to have another chargeable claim within the next year or two. When a chargeable claim has been paid by another insurer, ICBC will record the claim "as of the date of the accident in respect of which the chargeable claim payments were made" ...ie) October 11, two years ago. [Emphasis Added]

Front 48

(2) Otto Carr: Let’s talk about Autoplan insurance now. Let’s suppose that I was involved in an accident on July 10, three years ago, and that I was responsible for it. For the purpose of this example, let’s also assume that two people were injured, one more seriously than the other. On September 30, two years ago, ICBC agreed to an out-of-court settlement with the latter person. However, the person suffering the most serious injuries brought a civil action against me. A judgment for $750,000 was awarded to the plaintiff on the 15th of May this year. ICBC agreed to make this payment on my behalf at this time. How would the payment of this chargeable claim be recorded in my claim payment record?

Back 48

I.M. Smart: As with your previous question, the matter of when a chargeable claim is made a part of your claim payment record will be important should you have a subsequent chargeable claim within the next year or two. In a situation such as you have described ..., ie) "when more than one chargeable claim payment is made in respect of one accident, the chargeable claim payments shall be recorded as of the date on which the first chargeable claim payment is made following the accident." [Emphasis Added] In this case, the chargeable claim payment would be recorded as having been made on September 30, two years ago.

Front 49

Iona Carr: What is the starting point when determining the amount of any discount or surcharge for a new application?

Back 49

I.M. Smart: The calculation of the premium begins with the base rate premium. Next, a discount or surcharge is applied, if applicable.

Applicants and principal operators who have no claims may receive a discount of 5% for each year they have had a driver’s licence, subject to a maximum of 43%. When there has been a chargeable accident, a surcharge will be applied. The amount of this surcharge is contained in a separate table that provides for surcharges from 10 - 250% and higher.

Front 50

(1) Otto Carr: How long does a person have to be licensed in order to receive a discount for a new certificate?

Back 50

I.M. Smart: ICBC provides a 5% discount of the base vehicle rate when the principal operator has been licensed for at least a one-year scan period. This increases by 5% each year thereafter to a maximum of 43%

Front 51

(2) Otto Carr: We just moved here from Alberta. How does ICBC’s discount system work for people who move here from another province or country?

Back 51

I.M. Smart: ICBC will treat that licence the same as they would a licence issued in BC.

Front 52

(3) Otto Carr: Our neighbour’s son, Damon hasn’t had a driver’s licence for almost 2 years. He told us that it was suspended for a year for having too many accidents and that after the suspension ended, he had no reason to renew it. He plans to buy a car and renew his driver’s licence when he finishes university next year. How does this 2-year break in which Damon did not have a driver’s licence affect the premium Damon will pay for Autoplan coverages?

Back 52

I.M. Smart: That’s a good question because it has a direct bearing on the premium that Damon will be charged when he decides to purchase Autoplan coverage. For the purposes of determining that amount, ICBC will proceed on the basis that "the suspension, cancellation or voluntary surrender of a driver’s licence or a prohibition from driving does not constitute a break in the continuity of the driver’s licence." [Emphasis Added]

People like Damon benefit from this rule ...ie) when they do not have a driver’s licence, they are not likely to be driving; when they are not driving, they are not likely to incur a chargeable claim. However, with each passing day, they are reducing the amount of the surcharge they will pay when purchasing Autoplan coverages in the future.