Chp 4 - Uninsured Automobile Coverage

Question 1

What is the definition of an uninsured motorist?

Answer 1

person who uses or operates a motor vehicle on a highway in BC when he or she is not insured under third party liability coverage. (includes owner of vehicle)

Question 2

Coverage available against uninsured or unidentified motorists

Answer 2

• In BC, coverage is available to residents who suffer bodily due to uninsured or unidentified motorists
• Max limit available is $200,000
• Coverage is available to BC residents whose property is damaged or who are injured or killed by uninsured/unidentified motorist. Coverage is available even if they do not own or insure a vehicle
• Important to note that vehicle accident must occur on highway in BC for coverage, if its not on highway, person is not allowed to claim under the uninsured/unidentified fund

Question 3

Definition of Uninsured and unidentified motorists

Answer 3

Uninsured motorist-One who drives an vehicle without the minimum required amount of insurance
Unidentified motorists- A motorist who has fled the scene of accident without being identified

Question 4

Coverage available under Autoplan

Answer 4

To claim under this coverage, the uninsured or unidentified motorist must be partially or fully at fault. Coverage available under autoplan is different for bodily injury and property damage
Bodily injury- Basic auto plan covers BC residents injured by uninsured/unidentified motorists in Canadian or US jurisdictions without an unsatisfied judgement fund

Property damage- Compensates for maximum of $200,000. For unidentified claims, a deductible of $750 applies to property damage if person does not carry collision coverage (no deductible to injury claims)

Question 5

How long do you have to file a hit and run claim? and describe priority of payment related to uninsured and unidentified motorists?

Answer 5

• notice must be filed withing 48 hrs
• Claims for bodily injury or damage have priority of payment to 90% of the amount payable. Claims for damage to vehicle and property have 10% priority.

Question 6

Describe Underinsured Motorist Protection (UMP)

Answer 6

• Sometimes motorists who cause accident do not have enough insurance to cover the full cost of the resulting damages and injuries, UMP works to protect and compensate the other party so that there damages can be paid for and covered
• Applies when the insured cannot fully recover there damages for bodily injury or death caused be negligent third party
• Only focused on bodily injury, not property damage
• Covers difference between value of insureds claim and TP’s limit of liability insurance
• Basic coverage is up to 1 million dollars for UMP

Question 7

Family protection endorsement

Answer 7

Offered by Ontario and Alberta to protect against underinsurance- is optional coverage

Question 8

Who is covered under UMP?

Answer 8

• applies to any autoplan policy holder and to members of that persons household
  -Person named in auto policy as the owner of a vehicle licensed and insured in BC
  -Individuals names as lessees on auto polices
• Members of household of vehicle owners or lessees
  -Person who holds valid BC drivers license, and there household members (license must be valid, debt free)
  An occupant of a motor vehicle described in owners certificate

Question 9

Limitations of Coverage (UMP)

Answer 9

Autoplan will not cover injury of persons who are:

• riding in unlicensed vehicle
• operating vehicle without owners permission
• riding in vehicle exempt under autoplan insurance
• UMP is not included under basic autoplan for vehicles used as taxis, buses, or limos. however a passenger can have coverage if they meet requirements listed above

Question 10

What are the amounts payable under UMP?

Answer 10

Total amount will be the lesser of the following:
- total amount of damages awarded as a result of the accident
- Any amount assessed under arbitration
- $1 million
Amount of damages received will be reduced by any amount received from another source such as accident benefits, Employment Insurance, workers compensation plan, money paid by owner of at fault vehicle

Question 11

Excess underinsured motorist protection

Answer 11

Available through icbc, provides higher limits of coverage

Question 12

What are Uninsured and Unidentified motorist funds?

Answer 12

• Described as payer of last resort because they provide compensation to people when there is no existing automobile insurance to pay their claim
• Some funds are financed by government (BC, Alb, Sask, Man, Ont)
• Some funds financed by Facility Association (NB, NS, NL,PEI)
• Territories do not have a fund
• payments from the fund are based on extent of the uninsured or unidentified drivers legal liability