FOI ICBC Supplement 2024.pdf

Autoplan Insurance in British Columbia Fundamentals Of Insurance Agenda Introduction to Autoplan Supplement Mandatory Coverage in Provinces with Compulsory Automobile Insurance Example: Choosing Extra Liability Coverage Tort Versus No-Fault Insuran...

Autoplan Insurance in British Columbia Fundamentals Of Insurance Agenda Introduction to Autoplan Supplement Mandatory Coverage in Provinces with Compulsory Automobile Insurance Example: Choosing Extra Liability Coverage Tort Versus No-Fault Insurance Autoplan Autoplan Premiums Vehicle Rate Class The Principal Driver New Residents First Responders Autonomous Emergency-Braking Discount Premium Surcharges and Penalties Fundamentals Of Insurance Introduction to Autoplan Supplement Specific to British Columbia Relevant for automobile insurance in the region Replaces Textbook Chapters Substitutes chapters 12, 13, and 14 in the Fundamentals of Insurance Study Guide Update Advised to study this supplement for April 2024 Fundamentals Of Insurance Insuring an Automobile Automobile Risks and Insurance Driving poses risks like injury and property loss. Insurance mitigates financial impact of vehicular incidents. Auto Insurance Policy Variability Available for owners, renters, and lessees of vehicles. Essential for businesses handling client vehicles. Insurance in British Columbia Chapter details insurance needs for BC drivers and owners. Fundamentals Of Insurance Automobile Insurance Across Provinces Provincial Management of Auto Insurance Mandatory Auto Insurance Coverage in Canadian Provinces Each province in Canada has its own system for road infrastructure, laws, and insurance regulations. Type of Regulatory Basic Province Insurance Coverage Body Private and Government Insurance Models Provider Included Private insurers operate in Alberta, Ontario, and the Atlantic provinces, with provincial oversight. Alberta, Ontario, Provincial Private Insurers Varies Quebec employs a hybrid system with government coverage for Atlantic Provinces Governments personal injury and private insurers for property damage. British Columbia, Saskatchewan, and Manitoba have Provincial Personal Quebec Hybrid System compulsory government insurance plans for all vehicle owners. Government Injury Mandatory Coverage Variations Basic insurance coverage includes accident benefits and third- Accident British Columbia, Compulsory Government Benefits, party-liability insurance. Saskatchewan, Government Insurance Plans Third-Party- Manitoba Insurer Liability Differences in mandatory coverage are detailed in Table 5.1 of the referenced chapter. Fundamentals Of Insurance Mandatory and Excess Coverage in Provinces with Compulsory Automobile Insurance Province Third-Party Accident Benefits Physical Damage Liability British Columbia $200,000 Included Optional Saskatchewan $200,000 Included $700 deductible Manitoba $200,000 Included $750 deductible Fundamentals Of Insurance Private Insurers and Excess Coverage in British Columbia British Columbia's Insurance Landscape Private insurers compete with government plan for excess coverage Offers increased third-party liability and protection against uninsured motorists Includes coverage for physical damage Saskatchewan and Manitoba's Insurance Offerings Private insurers provide reduced deductibles for physical-damage coverage Fundamentals Of Insurance Two-Part Insurance Documents in British Columbia Two-Part Insurance Documents One part for proof of insurance Other part for vehicle registration evidence Details in Legislation and Resources Insurance specifics outlined in laws Information accessible on government websites Brokers provide informative booklets No Additional Policy Documents Legislation and resources suffice for policy details Fundamentals Of Insurance Example: Choosing Extra Liability Coverage Case Study: Nick Crompton's Resides in Courtenay, British Columbia Insurance Choices Drives a newer-model four-door sedan Government Insurance Minimum $200,000 third-party liability coverage Requirements Personal Coverage Desires $2,000,000 third-party coverage Preferences Seeks lower deductible for physical-damage coverage Options for Additional Government plan or private insurer Coverage Chose private insurer for lower deductible option Fundamentals Of Insurance  The Insurance Corporation of British Columbia (ICBC) Fundamentals Of Insurance  The Insurance Corporation of British Columbia (ICBC) ICBC Key Legislative Changes and Services Establishment of ICBC Service Year Legislation/Amendment Founded on April 19, 1973, as a Crown corporation Provided Operates universal, compulsory Autoplan insurance Autoplan Basic Legislation and Coverage 1973 Insurance Corporation Act insurance Insurance (Motor Vehicle) Act mandates Autoplan Basic insurance Optional coverage competition from private insurers Streamlined 2003 Insurance (Vehicle) Act auto insurance Regulatory Amendments statutes 2003 changes streamline auto insurance statutes British Columbia Utilities Commission sets basic insurance rates British Columbia Utilities Basic insurance Non-Insurance Services 2003 Commission appointment rate regulation Driver testing, vehicle registrations, and road safety investments Collects fines and government debts during policy transactions Fundamentals Of Insurance Benefits of the ICBC System Mandatory Insurance Universal Coverage Consistent Products Accessible and for All Drivers and Limits and Services Affordable Insurance Reduces uninsured drivers, Available to all, with non- Competition based on Cost spread over a driver's saving money for the discriminatory rating based customer service among lifetime, with economies of community on risk, not demographics Autoplan brokerages scale for community benefit Integrated Licensing Enhanced Care System-wide Extensive Broker and Registration Program Efficiencies Network Fundamentals Of Insurance Tort vs No-Fault Insurance and Enhanced Care Fundamentals Of Insurance  Tort Versus No-Fault Insurance Definition of Tort Types of Torts Tort-Based Auto No-Fault Insurance Variations Across Insurance System Provinces A wrongful act leading to Intentional: Deliberate Victims can sue for Victims receive insurance Manitoba and Quebec a lawsuit, particularly acts violating rights or damages and pain if the payouts without the right have pure no-fault causing injury or harm. causing injury. other party is at fault. to sue. systems. Unintentional: Acts of Benefits include medical carelessness or duty expenses and failure, often negligence. compensation for lost income. Fundamentals Of Insurance  ICBC's Shift to Enhanced Care Transition from tort-based to no-fault insurance on May 1, 2021 Lawsuits Limitation for At-Fault Drivers Restrictions on lawsuits for crashes causing injury, death, or vehicle damage British Columbia’s Implications for Residents and Non-Residents No-Fault System and Limitation applies to both British Columbia residents and non-residents Lawsuits Limitation Exceptions to Lawsuits Limitation Off-highway crashes with non-standard vehicles allow for lawsuits Benefits of Enhanced Care Victims can recover costs without suing at-fault drivers Fundamentals Of Insurance Enhanced Care Introduction to Enhanced Care Provides benefits for injuries or fatalities involving motor vehicles. Accessible to all British Columbia residents, regardless of fault. Benefits and Coverage Lifetime care and recovery benefits. Includes non-residents under certain conditions. Cost Savings Eliminates costs from the previous tort system. Reduces legal fees and lowers insurance rates. Vehicle Damage Coverage Now included in ICBC's basic coverage. Eliminates the need for legal action for vehicle repairs. Fundamentals Of Insurance Autoplan and its Requirements Fundamentals Of Insurance Autoplan Introduction to Autoplan Official automobile insurance plan of British Columbia Known as Autoplan Autoplan Basic Coverage Autoplan Compulsory coverages for all vehicles Optional Coverages Additional coverages available for purchase Detailed Coverage Analysis Fundamentals Of Insurance Licensing and Insurance Autoplan Basic Policy Requirements All motor vehicles on public roads must be licensed and insured. Registration for New Residents Vehicles must be registered within 30 days of moving to British Columbia. Licensing and Commercial Vehicle Immediate Registration Insurance Commercial vehicles over 5,000 kg must be registered immediately for road use. Off-Road Vehicle Regulations Utility and off-road vehicles used on public land need registration but not licensing. Insurance for Off-Road Vehicles Vehicles on forest service roads require a minimum of $200,000 third-party liability insurance. Fundamentals Of Insurance Vehicle Inspections Inspection Mandate All vehicles from outside British Columbia require mechanical and safety inspections prior to registration. International Compliance Vehicles from outside Canada must meet both federal and provincial inspection standards. Inspection Centres Autoplan brokers provide lists of designated inspection centres. Fundamentals Of Insurance Autoplan Premiums and Factors that Affect Them Fundamentals Of Insurance Autoplan Premiums Base Premium Factors Everyone starts with the same base premium ICBC adjusts premiums based on individual factors Base Premium Rate Standard rate for Autoplan Basic is $903.85 annually Rate subject to change with ICBC's rate adjustments Premium Adjustments Reductions available for certain circumstances Surcharges and penalties may apply in other cases Fundamentals Of Insurance Premium Adjustments Premium varies based on the geographic area Insurance Territory Coverage covered by the policy Premium adjusted according to the vehicle's Vehicle Rate Classification designated rate class Premiums reflect the driving records of regular Driver Experience and Crash History vehicle operators Application of Discounts and Final premium includes specific adjustments post Surcharges risk assessment Fundamentals Of Insurance Coverage Territory Geographical Division of Territories 14 territories based on geography and population Additional territory Z for areas outside British Columbia Coverage Territory Impact on Insurance Costs Claims records in each territory influence local insurance rates Assignment of Territories Private passenger vehicles and motorcycles use home location Buses and taxis are assigned based on usual driving area Fundamentals Of Insurance Vehicle Rate Class Vehicle Rate Class Significance Defines the vehicle's intended use Impacts insurance premium rates Variety of Rate Classes Over 150 classes for different vehicle uses Premiums Based on Usage Business vehicles incur higher premiums Pleasure vehicles have lower premiums Fundamentals Of Insurance Driving Experience and Crash History Driver Factor Calculation Reflects years of driving and at-fault crash record Starts at 1.000 and adjusts based on experience and crashes Driving Experience and Experience and Crash-Free Benefits Crash History More experience and no crashes lead to a lower driver factor ICBC tracks driver records for 40 years Crash Forgiveness Policy 20 years of driving and no accidents in the last 10 years result in forgiveness for a single at-fault crash Fundamentals Of Insurance Driver Factors that Affect the Policy Premium Listing Regular Drivers Principal driver and other named individuals must be listed with licence and birth details. Impact of Unlisted Drivers Occasional drivers may use the vehicle without being listed, discussed in a later section. Adjustments to Base Premium Based on the driving history of learners and new residents. Fundamentals Of Insurance The Principal Driver Principal Driver Definition Individual who primarily operates the insured vehicle Policy Listing Principal driver named in the policy for premium calculation Driver Factor Impact Driver's history influences the adjustment of the base premium ICBC's Role Uses the principal driver's factor to determine premium changes Fundamentals Of Insurance Other Named Drivers Listing Other Named Drivers Includes household members, employees, learners, and regular drivers Policy Changes Named drivers can be added or removed at no cost during the policy term Combined Driver Factor Premium based on principal and one other high-risk driver's factors Premium Adjustment 75% based on principal driver, 25% on highest risk driver Impact of Lower-Risk Drivers Can reduce combined factor if they are household members or employees Broker's Advice Extra drivers do not always affect policy cost; other factors are considered Fundamentals Of Insurance  Learners Additional Premium for Learners Driver Factor Management Exclusions in Driver Factor Calculation ICBC charges $130 to $230 based on location New drivers start with a reduced driver Learner period not included in driver factor factor Covers all learners using the vehicle Crashes during learner period not recorded Driver factor increases after a crash Single fee for multiple named learners on driving record Removal of reduction after a second crash within 10 years Fundamentals Of Insurance New Residents Reflects risk while adapting to local roads and rules Increased Driver Factor for New Residents Higher Autoplan insurance costs for the first three years Yearly Reduction in Driver Factor Contingent on a crash-free record Consideration of Driving Experience Potential for smaller initial increase with a good driving record Accident History Evaluation Only at-fault accidents in British Columbia considered post-arrival Impact of Older Crashes Less influence than recent ones on driver factor Eligibility for Crash Forgiveness Fundamentals Of Insurance Driver Factors that Don't Affect the Policy Premium Fundamentals Of Insurance Driver Factors that Don't Affect the Policy Premium Unaffected Driver Factors Drivers not named in the policy First responders on emergency calls Fundamentals Of Insurance Unlisted Drivers Driver Accountability for At-Fault Crashes Higher driver factors and insurance costs for more at-fault crashes Consequences for Unlisted Drivers Unlisted At-fault crash records attached to the actual driver, not the policyholder Drivers Policyholder's Protection Unaffected driving record and policy premium if an unlisted driver causes an accident Unlisted Driver Accident Premium One-time penalty charged to the policyholder unless protected by Unlisted Driver Protection Fundamentals Of Insurance First Responders Emergency Call Crashes Non-Emergency Call Crashes Driver factor remains unaffected during Driver factor will be affected if a crash emergency calls occurs Fundamentals Of Insurance Premium Discounts Fundamentals Of Insurance Premium Discounts Senior's Discount Available for policyholders 65 or older using the vehicle for pleasure Applicable to Autoplan Basic and other coverages Limited to six days per month for non-pleasure use Discount reduced after first crash, eliminated after second within 10 years Additional Discounts Low-kilometre and distance-based savings Autonomous emergency-braking discount Passive electronic immobilizer discount Anti-theft deductible savings Disability discount Fundamentals Of Insurance Low-Kilometre and Distance-Based Discounts 10% reduction on Autoplan Basic premium Low-Kilometre Discount Eligible for annual policies with 10-15% reduction on optional coverages Distance-Based Discount Eligible for annual policies with Discount Exclusions Not applicable to motorcycles and collector vehicles Proof of odometer reading required Qualifications for Discounts Acceptable records include photographs, receipts, and official forms Fundamentals Of Insurance Autonomous Emergency-Braking Discount Crash Prevention with AEB Systems Electronic safety feature that automatically engages brakes during potential front-end collisions. Insurance Premium Discounts Eligible vehicles with factory- installed AEB systems receive a 10% discount on Autoplan Basic premium and certain optional coverages. Policyholder Responsibility Verification of AEB feature by consulting the owner's manual or a dealership. Fundamentals Of Insurance Passive Electronic Immobilizer Discount Electronic Anti-Theft Devices Prevents engine start without recognized key or device Offers high-level protection against theft Types of Immobilizers Passive type activates automatically Manual type requires operator action Insurance Discounts Available for vehicles with passive immobilizers Calculated by ICBC's system Exclusions Motorcycles and trailers not eligible Fundamentals Of Insurance Disability Discount Eligibility for Disability Discount 25% discount on Autoplan Basic insurance for persons with disabilities Must be approved under BC's Fuel Tax Refund program Application Process Discount not automatic; requires government documentation Provide documents to brokers to apply discount to policy Fundamentals Of Insurance Premium Surcharges and Penalties Fundamentals Of Insurance Premium Surcharges and Penalties ICBC's Approach to High-Risk Drivers Higher premiums for drivers with offences or convictions Penalties for policyholders not listing other drivers Premium Types of PremiumsSurcharges and Driver Penalty-PointPenalties Premium (DPP) for driving offences Driver-Risk Premium (DRP) for serious convictions Unlisted Driver Accident Premium for undisclosed drivers Accountability Measures Ensures offenders are responsible for their actions DPP and DRP are separate from regular insurance premiums Fundamentals Of Insurance  Driver Penalty-Point Premium Driver Penalty-Point Premium (DPP) Charged by ICBC for specific driving offences under the Motor Vehicle Act or regulations. Applicable for certain Criminal Code of Canada convictions, like impaired driving. Fundamentals Of Insurance Driver-Risk Premium Driver Risk Premium (DRP) Criteria Convictions leading to DRP charges Separate from Autoplan insurance premiums DRP Conviction Types Driving-related Criminal Code Motor Vehicle Act violations Excessive-speeding incidents Multiple Convictions Impact Roadside suspensions/prohibitions Electronic device usage while driving ICBC's DRP Policy Charged even without vehicle ownership Fundamentals Of Insurance  Unlisted-Driver Accident Premium Unlisted Driver Accident Premium Overview Charged for at-fault claims by unlisted drivers Applicable when Unlisted Driver Protection is absent or inapplicable Example Calculation of Unlisted Driver Accident Premium Exemptions and Calculations No charge in specific circumstances like medical emergencies Premium Insurance Premium Should Penalty Calculation based on driver's license, experience, and Difference Type Paid Have Calculation crash history Paid Penalty Determination Positive difference between actual and should-have- Autoplan $1,200 $1,400 $200 paid premiums results in a penalty Basic Maximum penalty: $5,000 for Autoplan Basic, double for $4,500 Optional coverages Optional $600 $700 $100 Coverages Prevention Measures Listing all drivers and adding Unlisted Driver Protection avoids penalties Fundamentals Of Insurance Determining the Unlisted Driver Accident Premium Keegan lives with Melissa and uses her car. She doesn't list him as a driver in her Autoplan policy and he causes a crash while driving her car. Keegan is a member of Melissa's household and therefore, as you’ll learn later in this chapter, he's not covered by her Unlisted Driver Protection; When Melissa last renewed her Autoplan policy, she paid a total premium of $1,800: ($1,200for Autoplan Basic insurance) + ($600for Optional coverages) = $1,800 If she had listed Keegan in the policy as she should have, the total premium would have been$2,100: ($1,400for Autoplan Basic insurance} + ($700for Optional coverages)* $2,100 To determine whether Melissa Will be charged an Unlisted Driver Accident Premium, ICBC subtracts the premiums she paid from what she should have paid by naming Keegan in the policy: ($1,400for Autoplan Basic insurance} + ($700for Optional coverages) MINUS ($1,200 for Autoplan Basic insurance) + ($600for Optional coverages) = $2,100- $1,800 = a difference of +$300. Because this is a positive number, Melissa will have to pay an Unlisted Driver Accident Premium. ICBC calculates this penalty to be $4,400: (15 x $200) + (15 x $100) = $3,000 + $1,500(maximum) ICBC pays Melissa's claim, but she must pay ICBC the $4,500 Unlisted Driver Accident Premium. Fundamentals Of Insurance Financing and Refuse-to-issue Orders Fundamentals Of Insurance Financing Flexible Payment Options Monthly or quarterly instalments for 6 or 12 months No sales taxes on financing charges Financing Initial Payment Terms for New Customers Mandatory 6-month term with monthly payments Eligibility for all options after successful first term Payment-Plan Agreement Includes schedule of payment deadlines Adjustment for weekends and holidays Fundamentals Of Insurance Refuse-to-issue Orders Autoplan Basic Insurance Collection Annual requirement for BC vehicle owners Point Efficient for collecting government debts and fines Orders ICBC to refuse policy sale or renewal Government Offices' Authority Debt or fine payment prerequisite Can collect outstanding amounts for insurance issuance Broker's Role in Debt Collection Some cases require direct payment to government Common Reasons for Refuse-to-Issue Motor vehicle debts, fines, or violations Orders Impound fees and environmental non-compliance Fundamentals Of Insurance Insured Drivers and Territorial Limits Fundamentals Of Insurance Insured Drivers Covers vehicle owner, listed drivers, and any Autoplan Basic Coverage licensed driver with permission Excludes businesses dealing with automobiles Business Exclusions unless they have a garage policy Provides coverage for unlisted drivers with owner's Unlisted Driver Protection consent under certain conditions Covers employees listed as additional drivers on Employee Vehicle Use business-owned vehicles Illustrates policy application in the event of an Example Scenario accident with an unlisted driver Fundamentals Of Insurance Territorial Limits Scope of Coverage Exclusions Practical Example Includes Canada, the United Does not cover incidents in Jason Jetson's potential States, and vessels between Mexico coverage during travel these ports Fundamentals Of Insurance Autoplan Coverages Fundamentals Of Insurance Autoplan Coverages Autoplan Basic and Optional Coverages Mandatory Autoplan Basic for vehicles in British Columbia Optional coverages available for additional protection Significant Changes in 2021 Enhanced access to care and recovery benefits Coverage for non-responsible party's vehicle repair or replacement Five Main Compulsory Coverages Third Party Liability and Enhanced Accident Benefits Basic Vehicle Damage and Underinsured Motorist Protection Inverse Liability Coverage Fundamentals Of Insurance Third-Party Liability Third-Party Liability Coverage ICBC Third-Party Liability Applies to physical injuries, vehicle, and property damage Coverage Limits Legal claims against at-fault drivers covered Basic Extended Exceptions in British Columbia Vehicle Type Coverage Coverage Lawsuits mostly not allowed for vehicle crash injuries or damages ICBC provides care and recovery funds Standard Up to $5 $200,000 Prohibition Exceptions Vehicles million Non-vehicle property damage and environmental harm Crashes outside British Columbia or involving non-standard Commercial $1 million --- Vehicles vehicles Autoplan Basic Coverage Hazardous $200,000 for out-of-province crashes $2 million --- Transport Extended Coverage Options Fundamentals Of Insurance  Enhanced Accident ICBC Enhanced Accident Benefits Summary Benefit Type Coverage Details Maximum Coverage Benefits Includes treatments, Comprehensive Coverage for All Medical Expenses medications, medical No overall limit devices, travel for care Medical, wage loss, and other expenses covered regardless of fault Medical and Personal Expenses Up to $109,000 gross Income Replacement 90% of net income annual income Reimbursement for a wide range of healthcare and rehabilitation services Weekly benefits for Varies based on Income Replacement Benefits Caregiver Benefit full-time and part- number of people 90% net income replacement up to $109,000 gross annual time caregivers cared for income Caregiver and Personal Care Assistance Covers cost for non- Personal Care Up to $10,897 per catastrophic to 24- Assistance month Weekly benefits for caregivers and coverage for personal care hour care needs assistance Permanent Impairment Compensation Lump-sum payment As per Permanent Permanent based on level of Impairment Lump-sum payment for permanent injuries as per regulations Impairment impairment Regulation Fundamentals Of Insurance ICBC Rehabilitation-Related Expenses Recovery Support for Injured Individuals Assistance with returning to previous employment or training for a new career Funding for necessary home or vehicle modifications due to injury Coverage for additional expenses essential for rehabilitation Fundamentals Of Insurance Catastrophic Injuries and Benefits: Death Benefits Survivor Benefits Overview Access to death benefits, funeral expenses, and grief counseling Death Benefits Payment One-time payment by ICBC to spouse, partner, or dependents Amount based on deceased's age and income Minimum payment of $72,995 to spouses and partners Beneficiary Hierarchy Payment shared by dependent children if no spouse or partner Adult children or parents may receive benefits in certain cases Fundamentals Of Insurance Catastrophic Injuries and Benefits: Funeral Expenses Financial Support for ICBC offers up to $9,949 for each deceased individual's funeral or burial. Funeral Costs Amount includes taxes and is subject to updates. Additional Information Refer to icbc.com for current premium details. Specific dollar amount not required for exam Exam Relevance knowledge. Fundamentals Of Insurance Catastrophic Injuries and Benefits: Grief Counselling Eligibility for Grief Counselling Coverage Up to $4,161 available for each family member per deceased individual Professional Counselling Services Includes counsellors, psychiatrists, clergy, or Indigenous elders Travel and Accommodation Support Pre-approval for expenses over 50 kilometres travel Fundamentals Of Insurance  Basic Vehicle Damage Coverage Basic Coverage Optional Collision Geographical Off-Highway Crash Limitations Coverage Restrictions Conditions Covers up to $200,000 for Additional coverage for costs Coverage applies only to crashes Coverage for crashes involving vehicle repairs and related costs exceeding the basic limit on public highways in British at least two licensed standard Columbia vehicles or trailers Reduction based on policyholder's crash responsibility Outside British Columbia, No coverage for crashes with percentage collision coverage is required non-standard vehicles or pedestrians off public highways Fundamentals Of Insurance Example Example of Basic Vehicle Damage Coverage Application Scenario Damage Policyholder Coverage Optional Costs Responsibility Payout Collision Coverage Eli’s car $10,000 25% $7,500 $2,500 (minus crash deductible) Fundamentals Of Insurance Understanding Underinsured Motorist Protection (UMP) UMP Coverage Essentials Provides up to $1 million for eligible claims Applies when Enhanced Accident Benefits are not available Eligibility Criteria Policyholder or household member injured in a crash At-fault driver lacks sufficient third-party liability insurance Specific Scenarios Coverage for pedestrians and cyclists in off-highway crashes Applies in jurisdictions allowing lawsuits against drivers Limitations of UMP Does not cover bodily injury or death in no-lawsuit zones Fundamentals Of Insurance UMP Coverage in Different Jurisdictions UMP Coverage Impact of Local Claims in Different Validity Laws Jurisdictions Valid in Canada Laws of the crash Application of and the United location govern coverage varies States UMP claims by province and state Fundamentals Of Insurance Statutory Uninsured/Unidentified Motorist Provision Automatic Coverage for Residents Protection for non-vehicle property damage on BC highways. Coverage against uninsured drivers or hit- and-run incidents. Maximum Coverage Limit Up to $200,000 for property damages. Separate from Autoplan Basic Insurance Available to all BC residents without other coverage. Claim Requirements $750 deductible for hit-and-run property damage claims. Fundamentals Of Insurance Inverse Liability Coverage Crash Compensation Applies in certain jurisdictions in Canada and the US Covers when legal compensation rights are restricted Limitations Pays repair costs based on other driver's responsibility ICBC's Coverage Role percentage Optional Collision coverage for policyholder's fault Autoplan Basic Insurance Covers part of Collision deductible Percentage based on other driver's responsibility Benefits Fundamentals Of Insurance Inverse Liability Coverage Fundamentals Of Insurance Optional Autoplan Coverages Overview Unlisted Driver Loss of Use Protection The RoadStar Package Extended Third Party- Liability The Roadside Plus Package Off-Highway Third Party Liability coverage New Vehicle Protection Income Top-Up Specialized Coverages Own Damage Coverage Policy Issuance Details Hit and Run Fundamentals Of Insurance Unlisted Driver Protection Optional Coverage Allows unlisted drivers to operate the vehicle up to 12 days/year for Unlisted Drivers Some exclusions apply Automatic Provision Provided at no extra cost on a new Autoplan Basic policy on New Policies Unlisted Driver Additional fee for at-fault crashes by unlisted drivers Accident Premium Renewal Policyholder must pay for protection upon renewal after a crash Requirements Exclusions to Household members, employees, frequent drivers, unlicensed drivers, and past Protection offenders excluded Fundamentals Of Insurance Extended Third-Party Liability ICBC's Optional Coverage Increases Basic Third-Party Liability limit Terms and Conditions Follows Basic coverage terms Increased Coverage Limits Private vehicles: Up to $5 million Heavy commercial vehicles: Up to $10 million Heavy commercial with dangerous goods: Up to $10 million Fundamentals Of Insurance Off-Highway Third Party Liability Off-Highway Coverage for Optional Coverage Beyond Applicable on Public Non-Standard Vehicles Basic Liability Highways Includes golf carts, utility vehicles, Protects when operated off- Basic and Extension Liability cover farm tractors, industrial vehicles highway, where basic coverage licensed non-standard vehicles does not apply Flexible Coverage Limits No Deductible Real-world Application Options from $200,000 to $5 Policyholders benefit from zero Example million available deductible on this coverage Case of Cheryl's farm accident and the implications of having coverage Fundamentals Of Insurance Off-Highway Third Party Liability Coverage Options Coverage Limit Applicability Deductible $200,000 Off-Highway No Deductible $1 million Off-Highway No Deductible $2 million Off-Highway No Deductible $3 million Off-Highway No Deductible $5 million Off-Highway No Deductible Fundamentals Of Insurance Income Top-Up Optional Income Top-Up Coverage Supplements income-replacement benefits from Enhanced Accident Benefits Eligibility for British Columbia Residents Available to all residents, with or without an ICBC policy Accessible to Non-Residents For those who license and insure a vehicle in British Columbia Flexible Insurable Income Increase Option to raise maximum yearly insurable income by up to $100,000 Beneficial for High Earners Ideal for individuals earning over $109,000 without other income-replacement coverage Fundamentals Of Insurance Own-Damage Coverage: Types of Own- Damage Coverage Introduction to Own-Damage Coverage Covers injury, damage to others, and more under Autoplan Basic Does not cover policyholder's vehicle damage without additional premium Types of Own-Damage Coverage Collision: Insures against vehicle collision or overturning Specified-perils: Covers various stipulated perils Comprehensive: Protects against non-collision damage Rating Categories Affecting Premiums Rate groups based on factors like claim costs, repair costs, and vehicle features Declared values based on market value and custom features Vehicle Categories and Deductibles Private-passenger and light commercial vehicles in rate group category Fundamentals Of Insurance Own-Damage Coverage: Collision Insures against damage from various impacts, including vehicles, objects, and road conditions. Scope of Collision Coverage Covers incidents with hit-and-run drivers. Basic coverage for non-fault scenarios. Basic Vehicle Damage vs. Collision insurance applies when the policyholder Collision Insurance is at fault. At-fault crash history may affect eligibility. Eligibility and Deductibles Possible higher deductibles for those with frequent at-fault crashes. Fundamentals Of Insurance Own-Damage Coverage: Specified Perils Protection Against Specific Risks Exclusions in Coverage Cost-Effectiveness for Certain Policyholders Fire incidents causing damage or loss Does not cover vandalism or malicious acts Theft or attempted theft, with exceptions Adverse weather conditions like hail or windstorms Conveyance accidents during vehicle transport Earthquake-induced damages Explosions leading to loss Rioting that affects the vehicle Aircraft accidents impacting the vehicle Fundamentals Of Insurance Own-Damage Coverage: Comprehensive Scope of Coverage Additional Benefits Covers more than Windshield damage specified-perils coverage coverage Includes non-collision No impact on driver factor related incidents from claims Specific Inclusions Optimal Coverage Strategy Fire, theft, vandalism, and Combining Collision and more Comprehensive for best protection Weather events and natural disasters Collisions with animals and other objects Fundamentals Of Insurance Collision and Comprehensive Exclusions Tire Damage Limitations Covered only for fire, theft, malicious mischief, or related losses Exclusion of Normal Wear Damage from regular vehicle operation not included Personal Belongings Vehicle contents are not covered Theft by Known Persons No coverage for theft by household members or employees Industrial Vehicle Exception Certain industrial vehicles excluded from coverage Fundamentals Of Insurance Hit and Run Coverage ICBC Collision Coverage Includes protection against hit-and-run vehicle damage No need for separate hit-and-run coverage Optional Hit and Run Coverage For those without Collision coverage Protects against hit-and-run on BC highways Coverage Details Limits up to $200,000 Deductible of $750 Fundamentals Of Insurance  Loss of Use Coverage: Automatic Loss of Use Coverage Loss-of-Use Automatic Coverage Reimbursement Coverage Timeline Coverage Benefits Conditions Terms Covers car rentals, taxi, Full vehicle theft under Up to $40/day, max Begins 72 hours post- and public transport Comprehensive or $800 for alternative theft report fares after an own- Specified Perils transport costs Ends upon vehicle damage claim coverage No deductible applied recovery, claim No coverage for partial settlement, or limit theft (e.g., tires, motor) reached Fundamentals Of Insurance ICBC Loss of Use Coverage Details Coverage Aspect Details Eligibility Comprehensive or Specified Perils coverage Reimbursement Limit $40/day, up to $800 total Deductible None Coverage Start 72 hours after theft report Vehicle recovery, claim settlement, or limit Coverage End reached Fundamentals Of Insurance  Loss of Use Coverage: Optional Loss-of-Use Coverage Overview of Temporary Coverage Reimbursement Coverage Limit Updated Optional Loss of Transportation Activation and Conditions Choices Coverage Limits Use Coverage Options Limits Available with Taxi, ride-share, Begins after an ICBC must have paid Collision, public transit, or incident and ends for an own-damage Comprehensive, or vehicle rental upon repair claim Specified Perils completion or claim coverage settlement Covers temporary Excludes limousines, transportation costs taxis, rental cars, after a covered utility, and off-road incident vehicles Fundamentals Of Insurance Coverage Limits for Optional Loss of Use Daily Total Vehicle Type Rate Class Coverage Coverage Limit ($) Limit ($) Private Passenger/Light Certain Classes $100 $2,000 Commercial Commercial Vehicles Other Classes $450 $9,000 Fundamentals Of Insurance The RoadStar Package For cars, motorhomes, or light commercial vehicles Package Availability in select rate classes Combines loss-of-use, rental-vehicle, vehicle- Additional Premium Coverage travel protection, and locks & keys coverage Must have Comprehensive coverage and include Eligibility Criteria specific vehicle types Not available for non-British Columbia residents' Exclusions rental coverage or vehicle travel protection Fundamentals Of Insurance Increased Loss-of-Use Coverage Loss-of-Use Coverage Options Can be purchased as part of collision, comprehensive, or specified-perils coverage Available with RoadStar package Passenger Vehicle Coverage Daily limit of $100 Total limit of $500 Motorhome Coverage Total limit of $1,000 No daily limit Fundamentals Of Insurance Rental-Vehicle Coverage RoadStar Package Coverage Additional Coverage Options Third-party liability up to $1million Stand-alone rental-vehicle policy Underinsured-motorist protection up to available $1million No need for additional coverage if Loss of Use coverage: $25/day, max $250 RoadStar package is purchased Collision coverage with $300 deductible Comprehensive coverage with $300 deductible Coverage for loss of rental income due to vehicle damage Fundamentals Of Insurance Vehicle Travel Protection Comprehensive Coverage Designed for vacations and business trips Applicable for trips up to 30 days for Vehicle Theft Living expenses up to $2,000 Towing up to $250 for motorhomes Expense Reimbursements Vehicle return costs up to $1,000 Rental vehicle costs up to $500 Travel expenses up to $3,000 Collision deductible reimbursement Additional Benefits Protection against uninsured at-fault drivers Fundamentals Of Insurance Coverage Limits for RoadStar Package Three or More Motorhome Expense Type One or Two People People Occupants Living Expenses $500 $1,000 $2,000 Towing Expenses $100 $250 $250 Vehicle Return $750 $1,000 $1,000 Rental Vehicle $500 Travel Expenses $1,500 $3,000 N/A Fundamentals Of Insurance Locks, Keys and Remote-Keyless- Entry Transmitters RoadStar Package Benefits Provides up to $500 for recoding locks Covers replacement of stolen keys or remote keyless-entry transmitters Deductible Policy Policyholder pays normal deductible for own-damage coverage Additional Information Current limit details available on icbc.com Fundamentals Of Insurance  The Roadside Plus Package Roadside Plus Package Seven-Component Policy Increased Coverage Limits Availability For policyholders with ICBC's Comprehensive Builds on RoadStar package with increased Loss of Use coverage up from $500 to $750 coverage limits Rental Vehicle Coverage Third Party Liability Applicable to most cars, light commercial Adds destination assistance, theft- from $1 million to $2 million vehicles, motorhomes, and fleets deductible waiver, and emergency roadside- Vehicle Travel Protection living expenses expense repayment from $500 to $1,000, travel expenses up to $6,000 Lock Re-Keying reimbursement from $500 to $1,000 Fundamentals Of Insurance Roadside Plus Coverage Enhancements Coverage Type Original Limit Roadside Plus Limit Loss of Use $500 $750 Rental Vehicle $1 million $2 million Coverage Vehicle Travel $500 - $3,000 $1,000 - $6,000 Protection Lock Re-Keying $500 $1,000 Fundamentals Of Insurance Destination Assistance Assistance for Inoperable Vehicles Covers incidents like collision, theft, or vandalism Helps policyholder reach their planned destination Expense Coverage Limited to $100 per occurrence Travel expenses must be incurred within 12 hours of the incident Reimbursement Process Policyholder applies to ICBC for expense reimbursement Exclusions Rental vehicle expenses not covered Fundamentals Of Insurance Theft Deductible Waiver and Emergency Roadside Expense Repayment Theft Deductible Waiver Emergency Roadside Expense Repayment Waives the Comprehensive deductible for theft or Reimbursement for expenses when the vehicle is disabled attempted theft if both coverages are held. by non-covered causes. Covers gas delivery, battery boosting, unlocking, towing, tire services, winching, and taxi fare. Excludes parts, supplies, gasoline, oil, batteries, or tires. Claims limit: two occurrences per term, up to $50 each. Fundamentals Of Insurance  New Vehicle Protection: Enhanced replacement-cost coverage Optional Coverages for Eligibility and Exclusions New Vehicle Own-Damage Coverage Newer Vehicles Replacement Plus Limitations Benefits Enhanced replacement-cost Applies to private passenger or Full replacement value paid for ICBC covers up to the actual coverage for vehicles up to two light commercial vehicles. total losses. cash value of the vehicle. model years old. Excludes motorhomes and Depreciation and inflation Replacement-cost coverage for vehicles over 5,500 kg. impact vehicle value and vehicles up to three model years replacement costs. old. Limited-depreciation coverage. Fundamentals Of Insurance New Vehicle Protection: Replacement-Cost Coverage Eligibility Criteria Applicable for vehicles in the first three model years. Total Loss Conditions High repair cost may lead to a total loss claim. No fixed damage percentage; could be up to 90% of market value. Claim Calculation Inflation considered, but no depreciation applied. Policyholder Options Replace with same make/model, another model, or receive cash. Fundamentals Of Insurance New Vehicle Protection: Limited- Depreciation Coverage Applicable to new or nearly new vehicles Eligibility for Coverage Vehicles must be within three model years old Exclusions in Third Model No coverage for total losses from fire, theft, vandalism, or malicious mischief Year Fundamentals Of Insurance Specialized Coverages Luxury Vehicle Protection Specialized coverage for high-value vehicles Storage Insurance Options Policy for vehicles during storage periods Interim Insurance Solutions Immediate coverage for newly purchased vehicles Unlicensed Farm-Tractor Policy Certificate for unlicensed farm tractors Collector-Vehicle Coverage Insurance tailored for collector's vehicles Vintage-Vehicle Policy Specific coverage for vintage vehicles Fundamentals Of Insurance  Coverage for Luxury Vehicles Increased Insurance Rates for Luxury Vehicles High-performance sports cars and luxury vehicles have higher repair or replacement costs. ICBC categorizes them as high-value vehicles, leading to higher insurance rates. Classification Criteria Vehicles are classified based on MSRP, model year, and other factors. Criteria include MSRP over $150,000 within the past 7 years or MSRP over $400,000 within the past 14 years. Exclusions and Broker Guidance Commercial vehicles, motorcycles, trailers, and recreational vehicles are not included. ICBC provides brokers with a list of luxury vehicles for premium determination. Fundamentals Of Insurance Storage Policy and Interim Insurance Available for high-value vehicles requiring own-damage coverage Special Risk Own Damage Policy Vehicle must qualify for this special coverage Provides coverage for vehicles not in use Storage Policy Includes third-party liability and own-damage options Lee family's RV covered for damage caused by a fallen tree Example: Storage Policy branch Temporary coverage for vehicles bought outside the province Interim Insurance for New Purchases Lasts from 1 to 31 days for transit to British Columbia Fundamentals Of Insurance Factors Influencing Premium for Interim Insurance Factor Description Value of the vehicle as declared by the Declared Vehicle Value policyholder Policyholder's requested insurance Coverages, Limits, Deductibles options Number of days the temporary coverage Coverage Duration is issued Fundamentals Of Insurance  Unlicensed Farm Tractor Certificate Regional Compliance Advisory Brokers should ensure clients comply with regional motor vehicle rules. Unlicensed Farm Tractor Certificate ICBC provides liability coverage for farming vehicles on public roads. Applicable to farm vehicles exempt from licensing under the Motor Vehicle Act. Certificate Requirements Must be carried in the vehicle during public road operation. Policy Example: Farmer's Use Case Coverage for unlicensed tractors used on highways, aiding farm mobility. Fundamentals Of Insurance Collector-Vehicle and Vintage Vehicle Policies Collector-Vehicle Coverage Special rate class for vehicles over 25 years old or limited-production models over 15 years old Must be well-maintained or restored and used only for pleasure Vintage Vehicle Policy For vehicles over 30 years old in original or restored condition Includes a Vintage Motor Vehicle Certificate for specific uses Usage and Compliance Limited to parades, exhibitions, club events, ceremonies, and public functions Daylight operation only if not compliant with safety regulations Fundamentals Of Insurance Coverage Conditions ICBC Coverage Conditions Overview Conditions assume lawful and policy-compliant vehicle operation Prohibited uses or breaches can lead to coverage denial Examples of Prohibited Uses and Breaches Contravening laws or policy purposes Operating without a valid licence or while committing a crime Participating in races, towing uninsured trailers, or road rage Driving under the influence of alcohol or drugs Consequences of Breach ICBC may deny coverage and require repayment for third- party claims Fundamentals Of Insurance Questions? Fundamentals Of Insurance