Application of terms and conditions

169   (1) Subject to subsections (2) to (4), the terms and conditions in Schedule 10

(a) are prescribed for optional insurance contracts that provide coverage that is not described in subsection (4),

(b) form part of those optional insurance contracts,

(c) apply only in respect of the coverage referred to in paragraph (a) that is provided by those optional insurance contracts, and

(d) must be printed on every policy evidencing those optional insurance contracts, other than an interim receipt, a renewal receipt or a binder, with the heading "Prescribed Conditions".

(2) Prescribed condition 4 does not form part of an optional insurance contract that does not provide third party liability insurance coverage.

(3) Prescribed conditions 5, 6, 7 and 9 do not form part of an optional insurance contract that does not provide coverage for loss of or damage to the vehicle specified in the contract.

(4) Prescribed conditions 10 and 11 of Schedule 10

(a) are prescribed for optional insurance contracts that provide coverage that is the extension of the limit of coverage specified in a certificate or in a policy that extends the limit of coverage specified in a certificate, with or without prohibitions, exclusions or different limits of coverage that are permitted under 61 (1.1) of the Act, to a limit that is in excess of that provided by a certificate,

(b) form part of those optional insurance contracts, and

(c) must be printed on every policy evidencing those optional insurance contracts, other than an interim receipt, a renewal receipt or a binder, with the heading "Prescribed Conditions".

(5) If any of subsections (2) to (4) apply to a contract, the terms and conditions printed on a policy as required by subsection (1) or (4) may be renumbered consecutively.

[en. B.C. Reg. 166/2006, Sch. s. 88, as am. by B.C. Reg. 46/2007, Sch. 1, s. 11.]

What must be printed on an extension policy

170   (1) The following must be printed on every policy, other than an interim receipt, a renewal receipt or a binder, that evidences coverage that extends the limit of coverage specified in a certificate or another policy:

Coverage provided by this contract that extends the limit of coverage that is specified in a certificate or a policy is provided on the same terms and conditions of the coverage that is extended, except in respect of a prohibition, exclusion or different limit of coverage that is permitted by the Insurance (Vehicle) Act.

(2) If the prescribed conditions are required to be printed on a policy under section 169, the words in subsection (1) must be printed on the policy immediately above the prescribed conditions.

[en. B.C. Reg. 166/2006, Sch. s. 88.]

Rounding of premiums and refunds

170.1   An optional insurance contract may include, as a term of the contract, either or both of the following with respect to any premium payable or refundable under prescribed condition 2 or 10:

(a) that any premium or refund shall be rounded to the nearest dollar and an amount ending in 50¢ shall be raised to the next higher dollar;

(b) that no payment shall be required and no refund shall be made if the rounded total is less than $5.

[en. B.C. Reg. 46/2007, Sch. 2, s. 2.]

Extended underinsured motorist protection

171   (1) If an insured covered by extended underinsured motorist protection commences an action in British Columbia against a person who may be an underinsured motorist, the insurer may apply to the court to be added as a party to that action.

(2) If the laws of British Columbia applied to an action referred to in subsection (1), a judgment in the action by a court in British Columbia is binding on the insurer and on an arbitrator under section 148.2 whether or not the insurer makes an application under subsection (1).

[en. B.C. Reg. 166/2006, Sch. s. 88.]

Payment of costs and interest

172   If an optional insurance contract is evidenced by a vehicle liability policy, the insurer must, in addition to the amount by which liability is limited under the contract,

(a) reimburse an insured for reasonable payments for emergency medical aid necessary to a person injured as the result of an accident for which indemnity is payable under the contract, if reimbursement is not provided to the insured under other vehicle insurance or by another insurer,

(b) pay costs incurred for fire extinguishers, jacks or other necessary emergency equipment or supplies provided to the insured,

(c) pay that proportion of the costs taxed against an insured in an action respecting a claim under the contract that

(i) the amount offered by the insurer as its total liability for indemnity to the insured under the contract in an offer to settle served in accordance with the Supreme Court Civil Rules

bears to

(ii) the aggregate of all special and general damages awarded in respect of the occurrence for which the claim is made,

(d) pay

(i) prejudgment interest under the Court Order Interest Act or similar legislation of another jurisdiction, and

(ii) post-judgment interest under the Interest Act (Canada) or similar legislation of another jurisdiction

on that part of the judgment that is within the limit under the contract, and

(e) if indemnity is provided to the insured under 2 or more optional insurance contracts and one or more of them is for excess insurance provided by an insurer other than the insurer named in the contract, contribute to the payment of expenses, costs and reimbursements for which provision is made in this section in accordance with the respective liabilities of that other insurer and the insurer named in the contract for

(i) damages awarded against the insured, or

(ii) the amount payable under a settlement made on behalf of the insured.

[en. B.C. Reg. 166/2006, Sch. s. 88; am. B.C. Reg. 156/2010, s. (a).]

Rights of insurer

173   Subject to section 79 of the Act, on assuming the defence of an action for damages brought against an insured, the insurer has exclusive conduct and control of the defence of the action and, without limiting the generality of the foregoing, the insurer is entitled to

(a) appoint and instruct counsel to defend the action,

(b) admit liability, in whole or in part, on behalf of the insured,

(c) participate in any non-judicial process which has as its goal the resolution of a claim, and

(d) compromise or settle the action.

[en. B.C. Reg. 166/2006, Sch. s. 88.]

Exceptions from liability

174   An insurer is not liable under an optional insurance contract evidenced by a vehicle liability policy for any liability for a general or special assessment, penalty or premium payable under the Workers Compensation Act or a similar law of another jurisdiction.

[en. B.C. Reg. 166/2006, Sch. s. 88.]

Nuclear energy hazards

175   (1) In this section, "nuclear energy hazard" means the radioactive, toxic, explosive or other hazardous properties of nuclear substances within the meaning of the Nuclear Safety and Control Act (Canada).

(2) If an insured is covered under an optional insurance contract evidenced by a vehicle liability policy for loss or damage resulting from a nuclear energy hazard and is also covered against such loss or damage under a contract evidenced by a policy of nuclear energy hazard liability insurance issued by a group of insurers and in force at the time of the event giving rise to the loss or damage,

(a) the vehicle insurance is excess to the nuclear energy hazard liability insurance, and

(b) an unnamed insured under the contract of nuclear energy liability insurance may, in respect of such loss or damage, recover indemnity under that contract in the same manner and to the same extent as if named in it as the insured, and for that purpose the unnamed insured is deemed to be a party to the contract and to have given consideration for it.

(3) For the purposes of this section, a contract of nuclear energy hazard liability insurance is deemed to be in force at the time of the event giving rise to the loss or damage, even though the limits of liability under it have been exhausted.

[en. B.C. Reg. 166/2006, Sch. s. 88; am. B.C. Reg. 62/2021, App. 4, s. 41.]

Disputes about vehicle loss or damage

176   (1) In this section and in section 177, "coverage dispute" means, in relation to insurance against loss of or damage to a vehicle or the loss of use of a vehicle, a dispute between the insured and the insurer as to

(a) the nature and extent of required repairs or replacement, or

(b) the value of the direct loss of or damage to the vehicle.

(2) Subject to subsection (3), a coverage dispute, unless resolved voluntarily by the parties to it, must be resolved by arbitration under section 177.

(3) A coverage dispute must not be submitted for arbitration more than 2 years after the occurrence of the loss or damage.

[en. B.C. Reg. 166/2006, Sch. s. 88; am. B.C. Regs. 62/2021, App. 4, s. 42; 114/2024, App. 1, s. 10.]

Arbitration process

177   (1) If a coverage dispute is, under section 176 (2), required to be submitted to arbitration, the insured or the insurer may refer the matters in dispute to arbitration in accordance with the Arbitration Act.

(2) If the insured and the insurer are unable to agree on the appointment of an arbitrator, the insured or the insurer may apply to the British Columbia Arbitration and Mediation Institute to appoint an arbitrator.

(3) An arbitrator appointed under subsection (1) or (2) must,

(a) within 7 calendar days after the arbitrator's appointment, serve notice of the appointment on the insured and the insurer, and

(b) promptly after the arbitrator's appointment,

(i) meet or communicate with the insured and the insurer,

(ii) gather relevant information,

(iii) set a schedule for submission of documents,

(iv) set a date on which an award will be made, and

(v) deliver the written award with full reasons and documentation by registered mail to the insured and the insurer.

(4) The insured and the insurer must share equally any costs incidental to the arbitration, including the costs of the arbitrator.

[en. B.C. Reg. 166/2006, Sch. s. 88; am. B.C. Regs. 62/2021, App. 4, s. 43; 117/2021, App. 6, s. 26; 114/2024, App. 1, s. 10.]

Priority of claims

178   For the purpose of payment of claims under third party liability insurance coverage, claims arising out of injury or death have priority over claims arising from loss or damage to property to the extent of 90% of the amount by which liability is limited under the plan or optional insurance contract and, subject to section 77 (1) of the Act, claims arising out of loss or damage to property have priority over claims arising out of injury or death to the extent of 10% of the amount by which liability is limited under the plan or optional insurance contract.

[en. B.C. Reg. 166/2006, Sch. s. 88.]

Other priorities

179   Subject to section 175, insurance coverage under an optional insurance contract evidenced by an owner's policy of the kind referred to in section 57.1 of the Act, is, in respect of liability arising from or occurring in connection with the ownership, use or operation of a vehicle owned by the insured named in the optional insurance contract and within the description or definition of the vehicle in the policy, primary insurance, and insurance under any other vehicle liability policy is excess insurance only.

[en. B.C. Reg. 166/2006, Sch. s. 88.]