After a collision, no-fault auto insurance allows BC residents to collect compensation for their injuries and lost wages, regardless of who was at fault. It’s also referred to as first-party insurance.
Accident victims will not be allowed to sue the at-fault motorist under Enhanced Care unless the driver has been convicted of a specific Criminal Code infraction, such as driving while drunk. To have their concerns heard, claimants will have to go via the recently established Civil Resolution Tribunal (CRT), an ombudsperson, or an ICBC fairness officer.
This strategy offers little to assist injured people. If no one is around, “If a careless motorist is “at fault” for an accident, the negligent driver faces no punishment other than an increase in their insurance costs. Furthermore, the majority of car accidents are not caused by illegal activity, leaving accident victims with little choices for a just recovery.
The Trial Lawyers of British Columbia said in a statement that the move to no-fault insurance is a good thing “a purposeful denial of British Columbians’ right to fair access to the courts and just compensation for individuals hurt on our roads.” We at Warnett Hallen LLP concur with this viewpoint.
When did BC go no-fault?
In British Columbia, recent legislative amendments have implemented a no-fault basis for car liability claims originating from motor vehicle incidents occurring on or after May 1, 2021. The reforms will have a big impact on out-of-province vehicle insurers.
In all but very limited instances, amendments to the British Columbia Insurance (Vehicle) ActCh 231 (the “I(V)A”) remove an individual’s right to sue for personal injuries and vehicle damage caused by a motor vehicle accident in British Columbia on or after May 1, 2021.
These changes are accompanied by significantly increased statutory first-party accident benefits for medical, rehabilitation, and income replacement, as well as new benefits for non-earners, caregivers, and permanent impairment compensation for those who have suffered a permanent impairment or catastrophic injury.
Unless an exception applies, a person cannot sue for bodily injuries and associated damages caused by a vehicle in British Columbia on or after May 1, 2021.
- Those who have been convicted of specified criminal offenses related to the use and operation of a vehicle.
Furthermore, if all of the cars involved in the collision are non-standard motor vehicles that are not licensed in British Columbia, personal injury claims may still be pursued.
Unless an exception applies, a person cannot sue for car damage and associated losses caused by a vehicle in British Columbia on or after May 1, 2021.
The ban to vehicle damage actions does not apply to actions taken by owners or lessors against renters or lessees.
Additionally, if all of the vehicles involved in the collision are non-standard motor vehicles that are not licensed in British Columbia, vehicle damage proceedings may still be taken.
Subrogated claims by an insurer for vehicle damage paid to an insured are barred by the vehicle damage bar.
Third-party claims for losses, other than personal injuries and vehicle damage, originating from a motor vehicle collision occurring on or after May 1, 2021, are not barred. The following are some examples of claims that are not barred:
- Property damage produced by a motor vehicle collision that is not caused by the vehicle (for example, damage to fencing, buildings, or other property);
Previously, the British Columbia Ministry of Health had the right to pursue subrogated claims against drivers and owners of cars who injured someone who was covered by the provincial government’s healthcare plan for the cost of healthcare services received as a result of an accident. The I(V)A changes preclude the BC government from pursuing subrogated claims for the cost of healthcare services received as a result of motor vehicle accidents occurring on or after May 1, 2021.
Accidents occurring on or after May 1, 2021, however, are still subject to the terms of the Health Care Costs Recovery ActCh 27 (“HCCRA”). Before any third party claim is settled on behalf of an insured, auto insurers must notify the British Columbia Ministry of Health within 60 days of learning of an act or omission by one of their insureds that may have caused or contributed to the personal injury or death of a beneficiary of the British Columbia healthcare plan, as well as the proposed settlement terms.
As a result of the revisions to the I(V)A, out-of-province car insurers should expect a considerable drop in third-party tort claims brought against policyholders originating from incidents in British Columbia on or after May 1, 2021. Insurers, on the other hand, may see an increase in claims for first-party accident compensation originating from accidents in British Columbia on or after May 1, 2021.
Whether or not the policy wording offers any First Party Personal Injury Protection (“PIP”) coverage, out-of-province motor insurers may be obligated to pay Accident Benefit coverage to the mandated minimum amounts in British Columbia. This can happen if:
- The state where the insurance was issued has passed legislation forcing vehicle insurers to alter their policies to comply with the requirements of the state where the accident occurred.
- If the insurer has been granted a Business Authorization in British Columbia, which includes a requirement to reform all coverages as a condition of doing business in the province;
- The policy contains a provision that requires the insurer to pay higher benefits if the insurer is required to do so by local laws in the area where the accident occurs; or the policy contains a provision that requires the insurer to pay higher benefits if the insurer is required to do so by local laws in the area where the accident occurs.
- If the insurer has submitted a Powers of Attorney and Undertaking for Canada Non-Resident Inter-Province Motor Vehicle Liability Insurance in the revised form introduced in 1988.
Insureds from outside of British Columbia who are involved in motor vehicle accidents in British Columbia are entitled to Accident Benefits up to the mandated British Columbia minimum levels, whether or not they have purchased PIP coverage.
Even if they are neither a British Columbia citizen or an ICBC member, a driver and any passengers in their vehicle may be entitled to Accident Benefit coverage from ICBC for motor vehicle accidents occurring in British Columbia on or after May 1, 2021.
To the extent that alternative coverage is available, ICBC coverage is secondary to any other applicable insurance plans. If a person is eligible to Accident Benefits under a vehicle insurance policy issued by an out-of-province insurer, such coverage takes precedence over any ICBC Accident Benefits they may be entitled to.
For motor vehicle incidents occurring in British Columbia on or after May 1, 2021, first-party Accident Benefits coverage has been dramatically raised. There is no longer a maximum restriction on an insured’s Accident Benefits, while there are still limits on certain benefits that are subject to CPI increases.
The following are the benefits and existing coverage limits for accidents occurring on or after May 1, 2021:
An insured who is injured as a result of the use or operation of a vehicle is entitled to reimbursement for reasonable and necessary medical, dental, and rehabilitative expenditures.
Both the I(V)R and the Enhanced Accident Benefits Regulation B.C. Reg. 59/2021 specify the scope of coverage for medical, dental, and rehabilitation expenses.
If the insured’s restrictions for activities of daily living achieve a minimal threshold of impairment, attendant care coverage is offered.
An Income Replacement Benefit provides coverage of up to 90% of an insured’s net income, subject to a maximum yearly insurable income of $100,000.00 CAD, lost as a result of being unable to work due to an accident under the Income Replacement and Retirement Benefits and Benefits for Students and Minors Regulation B.C. Reg. 60/2021.
Insureds who work unpaid for a family business, students who miss school, and caretakers are all eligible for coverage.
Permanent impairment compensation is available to insureds who meet the criteria of being permanently impaired or catastrophically wounded as defined by the Permanent Impairment Regulation, BC Reg 61/2021. This is a one-time payment in full.
According to the I(V)A, ICBC must compensate an insured for vehicle damage caused by a motor vehicle accident in British Columbia involving two or more cars. An insurer must give indemnity to its insureds to the amount required by the I(V)A if the applicable auto policy is required to provide coverage to the British Columbia minimum first party coverage.
The Basic Vehicle Damage Coverage Regulation, BC Reg 4/2021, limits indemnification to $200,000.00 CAD.
Indemnity is lowered to the amount of the owner or operator of the insured’s vehicle’s or another unidentified liable motorist’s responsibility for the accident, with the reduction represented as a percentage.
The British Columbia Civil Resolution Tribunal has exclusive jurisdiction over the determination of eligibility to most benefits paid or payable under the I(V)A. (the “CRT”). However, under the new provisions, claims for indemnity for car damage against insurers are subject to obligatory arbitration.
Insureds can file claims against the insurer before the CRT, the Provincial Court of British Columbia, or the Supreme Court of British Columbia, depending on the size of the claim, for plans that are not required to provide BC minimum First Party Accident Benefit coverage.
In all but very restricted instances, the new modifications to the I(V)A and accompanying Regulations have banned tort claims originating from motor vehicle incidents in British Columbia on or after May 1, 2021. As a result, out-of-province car insurers can expect a considerable decrease in third-party claims and litigation against insureds originating from motor vehicle incidents in BC.
However, the number of first-party claims filed by insureds will almost certainly rise.
Out-of-province auto insurers should be aware of the limited circumstances under which tort claims arising from motor vehicle accidents in British Columbia occurring on or after May 1, 2021 may still be pursued against an insured, as well as whether an insured is entitled to enhanced accident benefits beyond the British Columbia minimum, and how to determine entitlement and calculate enhanced accident benefits.
Does Canada have no-fault car insurance?
In Canada, which provinces have no-fault insurance? Each province has its own version of no-fault insurance, with various levels of claim compensation. You can choose for a tort system instead in Saskatchewan. In May of 2021, British Columbia will have no-fault insurance.
Can you sue a driver in BC?
In some cases, you may be able to seek compensation in addition to your basic insurance coverage by filing a lawsuit against the person who caused the accident. The Fault Determination Rules set under the Ontario Insurance Act decide who is at fault.
You may be eligible to claim for pain and suffering, loss of enjoyment of life, and future health care costs if the other motorist was at fault and you incurred a permanent significant disability. You may also be entitled to sue for any financial damages or out-of-pocket expenses that your insurer has not covered. These are complicated concerns that should be handled with your lawyer.
If you intend to sue as a consequence of a car accident, you must usually tell the person you intend to sue within 120 days of the accident, and you must usually file your case within two years of the accident.
Does ICBC still pay for pain and suffering?
Your reimbursement for a minor injury The maximum amount for pain and suffering compensation for minor injuries sustained between April 1, 2019 and March 31, 2020 is $5,500. Discuss how your minor injury is affecting your day-to-day life with your ICBC claim specialist.
Does BC have public car insurance?
Automobile insurance is offered by government-owned enterprises in British Columbia and Manitoba. In Saskatchewan, the government insurer is required to provide auto insurance, while private businesses are allowed to offer optional coverage.
Does BC have public insurance?
Is automobile insurance in provinces with government-run insurance schemes less expensive? – Ottawa resident Nick
Your insurance premium is determined by a variety of criteria, including your driving record, the vehicle you drive, how long you’ve been driving, and even where you reside.
However, if you’re considered a higher risk of being in a car accident in a province with private insurance, you’ll pay more than you would in a province with government-run insurance.
“With private insurance, there tends to be more separation between excellent and terrible drivers,” says Werner Antweiler, an economics professor at the University of British Columbia’s Sauder School of Business.
British Columbia, Saskatchewan, and Manitoba are the three jurisdictions in Canada that have government-run insurance schemes.
The Insurance Bureau of Canada (IBC), which represents private insurance companies, publishes an average rate list for each province every year.
British Columbia had the highest average rate in Canada last year, at $1,832. It was $1,505 in Ontario, the second-highest.
However, a recent research for B.C.’s Ministry of the Attorney General by accounting firm Ernst & Young looked at what different hypothetical drivers may pay in annual vehicle insurance in every province except Quebec, based on accident history and how long they’ve been driving.
It also looked at how rates differed by age, gender, occupation, and marital status. In provinces with private insurance, such criteria are used to set rates, but they are not in British Columbia, Saskatchewan, or Manitoba.
So, in provinces with government-run insurance, you won’t be charged more simply because you’re a man or under the age of 25.
More extreme highs for private insurance
Take, for example, Ben. He’s a 19-year-old student who travels 15,000 kilometers each year, has never been in an accident or been convicted of a crime, has been driving for three years, and drives a 2013 Toyota Corolla.
Ben would spend $4,516 in Vancouver for public insurance and $6,463 in Toronto for private insurance per year.
Other cities in provinces with private insurance have different rates. Ben would pay $7,234 in Red Deer, Alberta, $4,543 in Ottawa, $6,129 in Halifax, $4,925 in Charlottetown, and $7,133 in St. Johns, according to the research.
The other two provinces that have public insurance are less expensive. In Saskatoon, Saskatchewan, Ben would earn $1,284 per year, but in Winnipeg, he would earn $1,899 per year.
Compare Ben to Brad, who is 42, travels 30,000 kilometers per year, has never been in an accident or been convicted of anything, and drives a 2016 Ford F150.
In every province, Brad earns less than Ben. Brad’s annual salary in Vancouver would be $1,881, in Edmonton $3,215, in Toronto $2,130, in Moncton $1,606, in Halifax $1,437, in Charlottetown $1,040, and in St. Johns $2073.
The disparity is smaller in Saskatchewan and Manitoba. In Saskatoon, he’d pay $1,259, which is $25 less than younger Ben. He would pay $1,423 in Winnipeg, which is $476 less than Ben.
Would privatizing be cheaper?
The province of British Columbia has been attempting to reduce its total rates. It revised its guidelines last year to make driving experience and crash history have a bigger impact on premiums, hiking rates for drivers who were at fault in accidents and cutting them for those who had been accident-free for years. B.C. announced earlier this month that it will switch to no-fault insurance by May, thereby eliminating the option for people to sue for injuries sustained in a car accident. It expects rates to drop by $400 on average as a result of this.
The Insurance Bureau of Canada, on the other hand, contends that the only way to truly reduce costs is to introduce private insurance the province now allows private companies to provide only optional insurance.
IBC vice president Aaron Sutherland says, “I’m not saying we have to get rid of ICBC; we just have to give people a choice and give them the chance to take their insurance elsewhere.”
According to a 2018 IBC analysis on the potential impact of allowing private businesses to compete with ICBC, rates for drivers over 45 would drop by up to 9%, while rates for drivers over 55 would rise by up to 18%, but rates for drivers under 35 would rise.
There would be no change for drivers between the ages of 25 and 45. What is the most significant increase? Rates for drivers under the age of 20 might rise by as much as 37%.
According to UBC’s Antweiler, implementing private insurance will not cut overall costs in B.C.
“Of course, the IBC represents private insurers, and they want a piece of the pie,” Antweiler says.
“Private firms seek to recruit good drivers while pushing bad drivers into their more costly default systems.”
Which provinces have provincial auto insurance?
In the Canadian provinces of British Columbia, Saskatchewan, Manitoba, and Quebec, public auto insurance is a government-run social insurance system that mandates automotive insurance. It is founded on the premise that if the government forces motorists to get auto insurance, the government should ensure that they pay fair premiums and obtain high-quality coverage. In order to achieve that goal, governments across the country have adopted a variety of insurance plans, ranging from full tort to full no-fault.
In the past, public auto insurers in Canada have operated on a non-profit basis. The Insurance Corporation of British Columbia (ICBC) is the only exception, as its enabling legislation was changed in 2010 to allow the provincial government to compel it to pay dividends into the provincial treasury.
Does your insurance premium go up if it’s not your fault?
In most cases, a no-fault accident will not result in an increase in your vehicle insurance rates. Because the at-fault party’s insurance company will be responsible for your medical bills and vehicle repairs, this is the case. Your premiums will not increase if your insurer does not need to make a payment.
If your rates do go up as a result of a no-fault accident, you should be aware that various insurers increase rates in different ways. Some companies may increase your premiums by 10%, while others may just increase them by 2%. Furthermore, several states, including as California and Oklahoma, prohibit insurance companies from raising rates following a non-fault claim.