Your car insurance is a contract between you and ICBC. That contract comes with a number of conditions that you should know about. Additionally, your optional insurance, such as your collision or comprehensive coverage, form separate contracts with ICBC that also contain separate conditions.
ICBC Can Deny Insurance Coverage
When you get in a motor vehicle accident, ICBC may investigate you and try to deny you insurance coverage. If you are denied coverage, then you will be liable for third-party damages. This means that you have to pay for the damage to any other cars and property and any personal injury claims. These damages are generally quite large.
Also, if you are not covered, ICBC will not pay your claims. This means you will not be paid out for your vehicle nor compensated for your injuries.
If ICBC investigates and determines you have breached your conditions, then ICBC will come after you for everything they paid out in the accident. This can result in massive debt to ICBC and substantial consequences to your driver’s licence and insurance.
ICBC Collision and Comprehensive Coverage: What Constitutes An ICBC Breach?
There are a number of common grounds for breaches:
- A failure to cooperate with ICBC;
- A false statement;
- A finding that the driver is impaired;
- A motor vehicle-related Criminal Code conviction;
- A misrepresentation of the principal operator or rate class;
- A finding that the driver drove without consent of the owner;
- A conviction for driving while prohibited;
- A failure to comply with the conditions of the driver’s licence;
- A failure to remain at the accident;
- A finding that the driver was in a race;
- A finding that the driver was trading or transporting illicit goods;
- A finding that the driver was attempting to escape arrest or police action;
- A finding that a person permitted a driver to do any of the above;
The above is not an exhaustive list, rather it serves to illustrate the numerous ways in which ICBC can breach your insurance.
An ICBC investigation begins immediately. From the day you get in a motor vehicle accident, you are required to give notice and cooperate with ICBC. Any failure to do so can result in a breach.
If you are in an accident, it is important to get good legal advice even before you report the accident. Or, if you are facing a principal operator breach from ICBC, it is important to receive proper legal advice in your proceedings. An experienced lawyer is important for drafting a proper statement, investigating the circumstances of the allegations, determining whether there is in fact and in law a breach, negotiating with ICBC, preparing a lawsuit if necessary, dealing with any debt, and more.