ICBC Law

When you purchase a contract of insurance with ICBC they want to know who the principal operator is going to be. The insurance premiums may vary based on the person’s driving record. It is unfortunately all too common of a problem for people to misrepresent who the principal operator of their vehicle is when insuring the vehicle with ICBC. Doing so is a breach of section 75 of the Insurance (Vehicle) Act which reads as follows:

I have unfortunately seen too many examples of people getting into trouble for misrepresenting the principal operator to ICBC. Parents say they are the principal operator when really their kids are or friends claiming they are the principal operator when really their buddy with a few too many speeding tickets is. All this to save a few hundred bucks. This ‘misrepresentation’ can lead to a loss of coverage. This loss of coverage could result in hundreds of thousands of dollars of debt not only to the driver but to the registered owner who claimed they were the principal operator.

The following are a few examples of the potential consequences of breaching a policy of insurance by lying about who the principal operator is:

a. If your car gets stolen ICBC would not have to pay you for this

b. If you are injured in a car crash that is not your fault ICBC will not have to pay you your ‘no-fault’ benefits

c. If you are at fault for a crash and injure someone else ICBC will not indemnify you for the losses you caused. Imagine that you are at fault for a crash that results in serious injury to another motorist. Imagine that the other motorists ICBC injury claim is worth $300,000. You could be on the hook personally for the value of that claim!

The consequences of breaching your ICBC insurance policy far outweigh the benefits of saving a friend or family member a few hundred bucks on their insurance premiums. Being in breach of insurance can have life-long financial consequences on motorists and I have seen these first hand. If you know of anyone who is trying to save a few bucks by misrepresenting who the principal operator of their vehicle is, do them a huge favour. Tell them the consequences before it is too late.

Reasons for judgement were released today showing the potential consequences of driving after drinking and lying to ICBC about one’s level of intoxication.

In 2004 the Plaintiff was involved in a serious single vehicle accident. His vehicle was totaled and the amount of his own vehicle damage was $67,000.

He told ICBC that “I had no alcohol to drink on the day of the accident. I may have had one or two drinks in the twenty four hours prior to the accident”. It turns out this was false.

ICBC refused to pay the Plaintiff’s own damage claim. The Plaintiff sued ICBC for the value of the vehicle damage.

The evidence of a blood alcohol analyst was tendered by ICBC which showed that his evidence of ‘one or two drinks‘ was “inconsistent with the results of the blood sample analysis“.

In the end ICBC refused to pay out the Plaintiff’s claim because of his false statement to ICBC. Section 19(1)(e) of the then Insurance (Motor Vehicle) Act states that if an insured makes a willfully false statement with respect to an ICBC claim under their plan of insurance the claim can be rendered invalid.

Mr. Justice Masuhara concluded that ICBC was right in refusing to honour the Plaintiff’s claim and dismissed the lawsuit finding that “It is apparent to me that (the Plaintiff) was seriously intoxicated the night before the accident…He had a responsibility out of good faith to his insurer to disclose at least that he could not recall because of his drinking, instead of stating that he ‘may have had’ one or two beers…which can be taken as a statement of minimal consumption….I conclude, regrettably, that the evidence is clear and cogent that (the Plaintiff) did not have a belief in the truth of the statement he provided regarding his alcohol consumption‘.

As a BC personal injury lawyer that started out my career in criminal defence work I have seen both the civil and criminal consequences of drunk driving. Most people know about the criminal consequences but the civil consequences can be much worse.

If you are convicted of impaired driving, you will lose your license for some time, you will have a criminal record, you may even spend a little time in jail. When all is done you pick your life up and carry on. The civil consequences, on the other hand, are not always so easy to get away from.

Imagine these facts: You drive drunk. You hit another car and are at fault. Both cars are totaled. You are injured. The other driver is injured. What can the civil consequences be?

You will be in breach of your ICBC insurance. ICBC will not cover your medical expenses. ICBC will not pay for your lost wages. ICBC will not fix your car. ICBC pays off the other driver’s vehicle damage claim (let’s say $20,000). The other driver’s injury claim gets settled, lets say for $100,000. Now ICBC will come after you for the extent of the other drivers claims, $120,000 in this example.

Where does this leave you

1. No car (maybe still making car payments on a totaled car)

2. Injuries with mounting medical and rehabilitation debts

3. Lost wages

4. A massive debt to ICBC. Don’t feel like paying? Good luck having your insurance and driver’s license renewed. Thinking of driving on your suspended license? Say hi to your criminal lawyer when he visits you in jail.

The civil consequences can be a lot worse for impaired driving in BC than the criminal consequences. These can include a debt so great that it will take a lifetime to pay off. There are countless sound reasons not to drive drunk and the civil consequences of impaired driving will hit you hardest in pocket book.