FOI - ICBC Supplement

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Questions and Answers

What discount is offered on Autoplan Basic premiums for vehicles with factory-installed AEB systems?

20%

10% (correct)

15%

What must policyholders do to verify the AEB feature in their vehicles?

Check the vehicle's history report

Submit a request to the insurance provider

Consult the owner's manual or a dealership (correct)

Perform a physical inspection of the vehicle

Which type of electronic immobilizer activates automatically without user intervention?

Active type

Manual type

Passive type (correct)

Universal type

Which of the following vehicles are NOT eligible for the insurance discounts related to electronic immobilizers?

Motorcycles Signup and view all the answers

What is the discount percentage for persons with disabilities on Autoplan Basic insurance?

25% Signup and view all the answers

What is required to apply for the disability discount on insurance?

Government documentation Signup and view all the answers

What type of premium is charged for serious driving convictions under ICBC?

Driver-Risk Premium (DRP) Signup and view all the answers

What accountability measures does ICBC enforce on high-risk drivers?

Higher premiums and penalties for offenses or convictions Signup and view all the answers

What is the minimum third-party liability coverage required in British Columbia?

$200,000 Signup and view all the answers

Which province offers $700 deductible for physical damage coverage?

Saskatchewan Signup and view all the answers

What defines a principal driver in an insurance policy?

The individual who primarily operates the insured vehicle Signup and view all the answers

What is the purpose of the two-part insurance documents in British Columbia?

To provide proof of insurance and vehicle registration Signup and view all the answers

How are premiums adjusted with the presence of a combined driver factor?

75% based on the principal driver, 25% on the highest risk driver Signup and view all the answers

What type of coverage does the government plan in British Columbia not provide?

Physical damage coverage Signup and view all the answers

What financial consequence is incurred when an unlisted driver causes an accident?

One-time penalty charged to the policyholder Signup and view all the answers

What is the additional charge for learners using the vehicle?

$130 to $230 based on location Signup and view all the answers

Which key benefit is associated with the ICBC system?

Universal coverage for all drivers Signup and view all the answers

What type of insurance allows victims to receive payouts without suing for damages?

No-fault insurance Signup and view all the answers

What impact do lower-risk drivers have on the insurance premium?

Their presence can reduce the combined driver factor Signup and view all the answers

How does private insurance in British Columbia compete with the government plan?

By offering additional third-party liability and lower deductibles Signup and view all the answers

Why might new residents face higher Autoplan insurance costs?

To reflect risks while adapting to local roads and rules Signup and view all the answers

What percentage of premium adjustment is based on the principal driver's driving history?

75% Signup and view all the answers

What does the term 'tort' refer to in the context of auto insurance?

A wrongful act leading to a lawsuit Signup and view all the answers

Which of the following factors does NOT affect policy premium?

First responders on emergency calls Signup and view all the answers

What is one of the main responsibilities of the British Columbia Utilities Commission?

Setting basic insurance rates Signup and view all the answers

What is a potential outcome if a learner driver has a crash?

Driver factor increases after a crash Signup and view all the answers

What is the deductible amount for physical damage coverage in Manitoba?

$750 Signup and view all the answers

Which change occurred in 2003 that impacted auto insurance in British Columbia?

Streamlining of auto insurance statutes Signup and view all the answers

What factors influence the adjustment of the base premium most significantly?

Both principal and highest risk driver's histories Signup and view all the answers

What discount is specifically available for policyholders aged 65 or older?

Senior's discount for pleasure use Signup and view all the answers

Which demographic factor does the ICBC system avoid in its rating process?

Age and gender Signup and view all the answers

What happens to the driver factor during non-emergency calls for first responders?

It doubles if involved in a crash Signup and view all the answers

What is NOT included in the coverage options offered by private insurers in British Columbia?

Government-mandated minimum coverage Signup and view all the answers

What is required to qualify for low-kilometre and distance-based discounts?

Verification of odometer readings Signup and view all the answers

What is covered under the new vehicle protection plan for vehicles up to two model years old?

Total losses under enhanced replacement-cost coverage Signup and view all the answers

What is the claims limit on non-covered causes for vehicle services?

Two occurrences per term, up to $50 each Signup and view all the answers

What service is NOT included in the roadside assistance coverage?

Gasoline for refueling Signup and view all the answers

What percentage of market value could a vehicle potentially reach for a total loss claim?

Up to 90% of market value Signup and view all the answers

Which vehicles are excluded from enhanced replacement-cost coverage?

Motorhomes and vehicles over 5,500 kg Signup and view all the answers

What happens when the repair cost exceeds a certain amount for a vehicle under this coverage?

A total loss claim may be filed Signup and view all the answers

What claim option allows the policyholder to replace with a different model?

Policyholder options for replacement Signup and view all the answers

What does limited-depreciation coverage mean?

Reduces the impact of depreciation on the vehicle value Signup and view all the answers

What is the maximum coverage limit for property damages under the hit-and-run claim?

$200,000 Signup and view all the answers

Which coverage allows unlisted drivers to operate a vehicle for up to 12 days in a year?

Unlisted Driver Protection Signup and view all the answers

What is the deductible for hit-and-run property damage claims?

$750 Signup and view all the answers

What is the purpose of Optional Collision Coverage?

Covers damages for policyholder's fault Signup and view all the answers

What is the increased coverage limit for extended third-party liability for private vehicles?

$5 million Signup and view all the answers

Which of the following is NOT a type of Own-Damage Coverage?

Theft Coverage Signup and view all the answers

What is the coverage amount for off-highway third-party liability coverage?

From $200,000 to $5 million Signup and view all the answers

Who is excluded from Unlisted Driver Protection?

Household members Signup and view all the answers

How can residents supplement their income-replacement benefits?

By purchasing Income Top-Up coverage Signup and view all the answers

What does comprehensive coverage protect against?

Non-collision damages Signup and view all the answers

Which type of vehicle is covered under off-highway third-party liability insurance?

Utility vehicles Signup and view all the answers

What must policyholders do to maintain Unlisted Driver Protection upon renewal after a crash?

Pay an additional premium Signup and view all the answers

What limit does basic third-party liability provide for heavy commercial vehicles transporting dangerous goods?

$10 million Signup and view all the answers

What is the primary intent of inverse liability coverage?

To compensate when legal rights are limited Signup and view all the answers

Study Notes

Mandatory and Excess Coverage in Provinces

Third-party liability coverage set at $200,000 across British Columbia, Saskatchewan, and Manitoba.
Accident benefits provided in British Columbia and Saskatchewan; optional physical damage coverage available.
Manitoba has a $750 deductible for physical damage coverage.

Private Insurers and Excess Coverage in British Columbia

Private insurers in British Columbia compete with the government for excess coverage options.
Offers greater third-party liability and protection against uninsured motorists.
Physical damage coverage is included in the offerings.

Two-Part Insurance Documents in British Columbia

Insurance documentation consists of two parts: proof of insurance and vehicle registration evidence.
Details regarding insurance specifics are based on legislation accessible through government resources and brokers' booklets.
No additional policy documents are necessary beyond legislative guidelines.

Example: Choosing Extra Liability Coverage

Case study of Nick Crompton: resides in Courtenay, British Columbia, seeks additional third-party coverage of $2,000,000.
Government insurance minimum provides $200,000 third-party liability coverage.
Private insurers offer options with lower deductibles, providing added flexibility.

The Insurance Corporation of British Columbia (ICBC)

Established April 19, 1973, serving as a Crown corporation for compulsory Autoplan insurance.
Regulated by the Insurance (Motor Vehicle) Act for basic insurance mandates and optional coverage competition from private firms.
Key legislative changes include the streamlining of auto insurance statutes and regulation of basic insurance rates.

Benefits of the ICBC System

Mandatory insurance reduces the prevalence of uninsured drivers, benefiting the community.
Universal coverage is accessible to all, focusing on risk rather than demographics for rating.
Affordable insurance costs spread over drivers' lifetimes, promoting community economies of scale.

Tort vs. No-Fault Insurance and Enhanced Care

Tort insurance allows victims to sue for damages; no-fault systems provide immediate payouts without legal action.
Variations in insurance systems include Manitoba and Quebec offering pure no-fault arrangements.

The Principal Driver

The principal driver is the individual primarily operating the insured vehicle.
Named in the policy for premium calculation that reflects driving history.
ICBC uses this information to adjust premiums based on driver risk.

Other Named Drivers

Includes household members, employees, learners, and regular drivers; additional drivers can be added at no cost.
Premium calculation factors in principal driver and one highest risk other driver.
Lower-risk household members could potentially reduce the combined driver factor.

Learners

Additional premiums apply for learners, ranging from 130to130 to 130to230 based on location.
New drivers have a reduced driver factor initially, which can increase after incidents.
Learners’ periods do not contribute to the driving record, excluded from the driver factor adjustment.

New Residents

New residents face higher Autoplan insurance costs for the first three years due to increased driver factors.
Yearly reductions in driver factors possible with a crash-free record.
Accident evaluations consider only at-fault incidents occurring in British Columbia.

Driver Factors that Don't Affect the Policy Premium

Drivers not named in the policy and first responders on emergency calls do not influence premiums.

Unlisted Drivers

At-fault crashes by unlisted drivers increase overall insurance costs.
Unlisted drivers' at-fault incidents are reflected on their records, not impacting the policyholder's premium directly.
Penalties apply for policyholders regarding unlisted driver incidents, unless protections are in place.

First Responders

Emergency call crashes do not affect the driver factor, while non-emergency crashes do.

Premium Discounts

Seniors (65+) can access discounts for leisure use, limited to six non-pleasure days monthly.
Other discounts include low-kilometre savings, anti-theft features, and disability considerations.

Low-Kilometre and Distance-Based Discounts

Eligible for reductions based on annual mileage and proof of odometer readings, excluding motorcycles and collector vehicles.

Autonomous Emergency-Braking Discount

Vehicles equipped with AEB systems qualify for a 10% discount on Autoplan Basic insurance.
Verification of AEB systems is required through the owner's manual or dealership.

Passive Electronic Immobilizer Discount

Vehicles with passive immobilizers, which prevent unauthorized engine starts, earn discounts.
Applicable exclusions include motorcycles and trailers.

Disability Discount

A 25% discount available for individuals with disabilities, contingent on government program approval.
Requires documentation submission to brokers for application.

Premium Surcharges and Penalties

Higher premiums for high-risk drivers with offenses; unlisted drivers incur penalties.
Specific surcharges include Driver Penalty-Point Premium (DPP) and Driver-Risk Premium (DRP) associated with serious infractions.

Driver Penalty-Point Premium (DPP)

Charges applied for driving offenses under the Motor Vehicle Act, influencing overall insurance costs.### Coverage Against Uninsured Drivers
Provides coverage for damages caused by uninsured drivers or in hit-and-run situations.
Maximum coverage limit set at $200,000 for property damage.
Offered separately from Autoplan Basic Insurance.
Accessible to all BC residents lacking other insurance.
Claims for hit-and-run property damage have a deductible of $750.

Inverse Liability Coverage

Designed for specific jurisdictions in Canada and the US where compensation rights may be limited.
Covers repair costs based on the other driver's accountability.
Optional Collision coverage is available if the policyholder is at fault.
Autoplan Basic Insurance contributes to part of the Collision deductible, with costs dependent on the other driver's liability.

Optional Autoplan Coverages Overview

Unlisted Driver Protection: Covers unlisted drivers operating a vehicle for up to 12 days per year, with specific exclusions.
Extended Third Party Liability: Increases basic third-party liability limits; private vehicles up to 5million,heavycommercialvehiclesupto5 million, heavy commercial vehicles up to 5million,heavycommercialvehiclesupto10 million.
Off-Highway Third Party Liability: Covers non-standard vehicles off the highway where basic coverage does not apply, like golf carts and utility vehicles.
Income Top-Up: Supplements income-replacement benefits; accessible to all BC residents, including non-residents who insure vehicles in BC.
Own Damage Coverage: Compensates for damage to own vehicle, must be added to the Autoplan Basic policy.

Unlisted Driver Protection

Automatic provision included in new Autoplan Basic policies without extra costs.
Additional fee applies for at-fault crashes caused by unlisted drivers.
Exclusions include household members, employees, frequent drivers, and those with past offenses.

Extended Third-Party Liability

Optional ICBC coverage that enhances basic third-party liability limits.
Coverage for private vehicles reaches up to 5millionandforheavycommercialvehiclesupto5 million and for heavy commercial vehicles up to 5millionandforheavycommercialvehiclesupto10 million.

Off-Highway Third Party Liability

Policy covers non-standard vehicles operated off public highways.
Coverage limits range from 200,000to200,000 to 200,000to5 million, with no deductibles.
Includes essential coverage for various types of utility and recreational vehicles.

Income Top-Up

Provides a supplemental income replacement that enhances benefits from Enhanced Accident Benefits.
Allows for an increase of insurable income by up to 100,000,beneficialforthoseearningabove100,000, beneficial for those earning above 100,000,beneficialforthoseearningabove109,000 without other income-replacement coverage.

Own-Damage Coverage

Covers injury and damage from several events under Autoplan Basic; however, does not cover damage to the policyholder's own vehicle without further premium.
Types include:
- Collision: Covers damage from vehicle impacts.
- Specified-perils: Addresses stipulated risks.
- Comprehensive: Protects against non-collision damages.

New Vehicle Protection

Enhanced replacement-cost coverage for newer vehicles (up to three model years old).
Full replacement value is provided for total losses, excluding vehicles over 5,500 kg and motorhomes.
Conditions may lead to total loss claims, even with high repair costs evaluated up to 90% of market value.

Claim Calculation for New Vehicles

Accounts for inflation but does not apply depreciation.
Options available for replacement include similar make/model, alternative vehicle, or cash equivalent.

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Description

Explore the mandatory and excess coverage options in provinces with compulsory automobile insurance. This quiz delves into the specifics around third-party liability, accident benefits, and physical damage coverage in regions like British Columbia, Saskatchewan, and Manitoba.