4 - Uninsured Automobile Coverage Flashcards
Explain the need for uninsured/unidentified motorist coverage.
Not all accidents are caused by motorists who are insured or identified as is the case with hit&run. If victims of such accidents had no way of protecting themselves, they could suffer serious financial hardship because of lost income, cost of medical care and rehab, and vehicle damage.
How is protection for uninsured/unidentified motorists provided?
Since auto insurance is under provincial jurisdiction in Canada, how coverage is provided to victims of uninsured/unidentified motorists varies from province to province. Each province has a plan in place to provide such coverage. In provinces where government provides basic coverage and no policy is issues, uninsured auto coverage is described in legislation.
Can a motorist who was at fault for an accident still recover under a plan designed to provide protection for claims caused by uninsured/unidentified motorists?
To claim under uninsured motorist coverage, the insured must be legally entitled to recover a loss from the uninsured - unidentified motorist. This means that the uninsured - unidentified motorist must be at fault.
What is an unsatisfied judgment fund?
Special funds to indemnify victims of insured & unidentified motorists. Some cover BI only, others also cover PD, subject to deductible. Typically an insured who is indemnified by an unsatisfied judgment fund will not be indemnified again for the same loss by his policy’s uninsured motorist coverage.
What coverage is available to BC resident who is the victim of Hit&Run accident?
- Under Insurance Vehicle Act $200K coverage available to BC resident whose property is damaged or who are injured or killed. This benefit is separate from the coverage afforded by basic Autoplan and is available to all residents, even if they do not own and insure a vehicle.
Since all vehicle owners can apply to ICBC for payment of damages caused by unidentified motorists, many private insurers have excluded Hit&Run claims from their own damage coverages in BC. - Basic Autoplan also covers BC residents for Hit&Run in Canada/USA without unsatisfied judgement fund. Coverage limited to equivalent of compulsory TP Liability limit in the jurisdiction where crash occurred, or $200k, whichever is less. This coverage does not include damage to vehicles.
- Autoplan coverage for personal injury or property damage $200K.
Notice of Hit&Run must be filed with police within 24hrs.
Under what circumstances would an individual be able to claim under Underinsured Motorist Protection (UMP)?
When motorist who causes crash doesn’t have enough insurance to cover full cost of resulting injuries, or may not have insurance at all. UMP enables drivers injured to receive the damages to which they are legally entitled (described in Insurance Vehicle Regulation Part 10, Division 2).
Basic UMP applies to any Autoplan policyholder and to members of that persons household. Coverages applies in variety of situation up to $1 mil per person.
What persons are eligible for UMP?
- Person named in Autoplan policy as the owner of the vehicle licensed/insured in BC.
- Individuals names as lesses on policies of leased vehicles.
- Members of household of vehicle owner/lessee.
- Persons who hold valid BC DL and their household members.
- An occupant of vehicle described in owners certificate
To qualify, DL must be valid, cannot be under suspension, or have money owing for BC driver premium surcharges.
UMP applies when any of the above persons are injured or killed while driving or riding in any vehicle or in MVA when they are pedestrians or cyclists.
Identify situations in which Autoplan will not pay for bodily injury or death under UMP.
- Riding in unlicensed vehicle, unless they have reasonable grounds to believe veh was licensed.
- Operating vehicle without owners permission and without reasonable grounds to believe the have owners permission.
- Riding in vehicle exempt from Autoplan (Govt of Canada vehicles).
- Crash happens in province/state where law doesn’t allow injures persons to sue and recover damages.
- Injured person or someone representing settles with or takes legal action against a person/organization that maybe liable without ICBCs agreement.
What is the total amount that a vehicle owners or anyone covered under the vehicle owner’s policy will receive from UMP?
The amount will be lesser of the following amounts:
- The total amount of damages awarded as a result of the accident.
- Any amount assessed under arbitration.
- $1 million.
Amount of damges received will be reduced by any amount received from:
- Amount payable under other ICBC coverage or another insurer.
- Amount payable from govt programs, ie WorkSafeBC.
- Amount that can be recovered from unsatisfied judgment fund in another jurisdiction.
- Money paid by owner of at fault vehicle.
Which vehicles are without UMP coverage?
Taxis, buses & limos do not have UMP. Drivers would submit claim under WorkSafeBC. UMP only applies to individuals.
If passengers are injured in the above they have UMP through their DL’s or Autoplan policy.
