Basic coverage

On-highway accidents

The insurance corporation must indemnify an insured person for damage or loss to their eligible vehicle resulting from an accident on a highway. This includes the cost of repairs or replacement of the vehicle, loss of use of the vehicle, repairs or replacement of attached equipment, and other specified types of damage or loss.

• The total amount of indemnification is reduced by the percentage of responsibility assigned to certain individuals involved in the accident, such as the owner or operator of the insured vehicle and other parties.

Non-highway accidents

The insurance corporation must indemnify an insured person for damage or loss to their eligible vehicle resulting from an off-highway accident. This includes the cost of repairs or replacement of the vehicle, loss of use of the vehicle, repairs or replacement of attached equipment, and other specified types of damage or loss.

• The total amount of indemnification is reduced by the percentage of responsibility assigned to certain individuals involved in the accident.

The insurance corporation has the authority to reduce or refuse to pay indemnification under specific circumstances, including if the insured caused the accident intentionally, provided false information, failed to comply with requirements, or in prescribed circumstances.

The recovery can be made from the vehicle owner, operator, or occupants in relation to accidents on the highway, or from a person in a prescribed class of persons in relation to accidents on the highway or off the highway.

• The recovery amount is limited based on the percentage of responsibility for the accident assigned to the applicable person.

The insurance corporation can issue certificates providing coverage under this part with specific clauses that limit the amount they must pay in the event of a loss.

Benefits

An insured person is entitled to receive payment or reimbursement for reasonable expenses related to their bodily injury, including healthcare, prescribed services, and necessary equipment or medication.

• The government can create regulations that determine how the amount of compensation is calculated and determined.

The insurance corporation can take necessary actions, including providing monetary assistance, to contribute to the rehabilitation of an insured person and help them recover from their bodily injury. This is done according to the regulations.

If an insured person is unable to perform daily activities without assistance due to their bodily injury, they are entitled to receive payment or reimbursement for reasonable and necessary expenses incurred to assist with these activities, up to a prescribed maximum amount.

• If the insurance corporation pays for healthcare, rehabilitation, or related services, the insured person can also receive payment or reimbursement for reasonable transportation, lodging, and meal expenses incurred to receive those services.

The insurance corporation can pay or reimburse eligible insured persons, up to a prescribed maximum amount, for reasonable expenses incurred to participate in recreation activities. Eligible insured persons belong to a specific group determined by regulations.

The insurance corporation can also pay or reimburse insured persons for reasonable expenses within a prescribed category of expenses related to an accident. The specific categories are defined by regulations.

The government can set a maximum amount for the total benefits payable to or on behalf of an insured person. This maximum amount must be at least $7,500,000 for each accident involving bodily injury.

Subrogation

When an insurer pays benefits, provides insurance money, or assumes liability for such payments, the insurer:

• Becomes subrogated to and considered the assignee of all the rights of recovery against any other person responsible for the loss, damage, injury, or death of the person for whom the benefits are being provided.

• Can bring legal action in the name of the insured or in its own name to enforce those rights.

The above does not apply if the benefits have been deducted or would have been deducted from a damages award.

If money is recovered and both the insurer and insured share the burden of the loss, the net amount, after the deduction of recovery costs, must be divided between them based on the proportion of their respective loss.

If the insured's interest is limited to loss or damage to a vehicle or its use, the insurer has control over legal action.

If the insured's interest is not limited to the above, and there is a disagreement between the insured and insurer regarding matters such as lawyers, conduct of the action, settlement offers, costs, etc., either party can apply to the court for determination, and the court will make a reasonable order considering the interests of both parties.

• Only the insured and insurer are entitled to notice and be heard in such court applications, and evidence used in the application is not admissible in a trial involving the insured or insurer.

• A settlement or release does not restrict the rights of the insured or insurer under this section unless both parties agreed to it.

Limits on pecuniary losses on minor injuries

If someone suffers minor injuries in an accident, the specific amount of money they can receive for non-financial losses will be determined by the regulations. If the person is partly responsible for the accident, the compensation they receive will be reduced based on the extent of their fault.

Optional Insurance

Duty of Insurer

If a person insured by an optional insurance contract is involved in an accident resulting in loss or damage to persons or property, the insurer must:

• Assist the insured by investigating and negotiating a settlement if deemed necessary.

• Defend the insured in any legal action for damages brought against them.

• Pay costs, expenses, interest, and prescribed reimbursements.

Coverage of Optional Insurance Contracts

An optional insurance contract can:

• Extend coverage beyond the limits specified in the certificate or policy, on the same terms and conditions.

• Provide coverage not included in the standard insurance coverage.

• Specify coverage for different persons, risks, or classes of persons or risks.

• Prohibit specified persons from using or operating the vehicle or exclude coverage for certain risks.

Coverage of Non-Owner's Policy

A non-owner's policy provides insurance coverage for the person named in the policy and any other person named in it against liability arising from bodily injury, death, or loss/damage to property caused by the vehicle specified in the policy.

Limits on Physical Damage

The insurer can set exclusions and limits of loss in the optional insurance contract for loss or damage to the vehicle or its use.

Agreement for Partial Payment of Claim by Insured

The insurer can enter into an agreement with the insured, allowing the insured to reimburse the insurer for a specified amount in the event of a claim or judgment by a third party.

Partial Payment of Loss Clause

The optional insurance contract may include a clause stating that the insurer will only pay an agreed portion of the loss sustained or the loss amount after deducting a specified sum.

BC Insurance (Vehicle) Act s. 60-62, 65-67, 103, 123-130, 174-179