BILL 93 – 2003
INSURANCE (MOTOR VEHICLE) AMENDMENT ACT, 2003

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:

1 The title of the Insurance (Motor Vehicle) Act, R.S.B.C. 1996, c. 231, is repealed and the following substituted:

INSURANCE (VEHICLE) ACT .

2 Section 1 is repealed and the following substituted before Part 1:

Definitions and application

1 (1) In this Act:

"applicant" means a person who applies for insurance;

"certificate" means a certificate of universal compulsory vehicle insurance issued under Part 1 or the regulations under that Part;

"commission" means the British Columbia Utilities Commission continued under section 2 of the Utilities Commission Act;

"corporation" means the Insurance Corporation of British Columbia continued by the Insurance Corporation Act;

"coverage" means the right conferred on a person by this Act, the plan or an optional insurance contract to be indemnified against liability for, or compensated for, death, bodily injury, loss or damages;

"insurance" means the undertaking by one person to indemnify another person against loss or liability for loss in respect of a certain risk or peril to which the object of the insurance may be exposed, or to pay a sum of money or other thing of value on the happening of a certain event;

"insurance money" means the amount payable by an insurer under the plan or an optional insurance contract;

"insured" means a person insured under the plan or an optional insurance contract, whether named or not;

"insurer" means

(a) the corporation, or

(b) the person who undertakes, agrees or offers to provide insurance under an optional insurance contract;

"licence"

(a) in relation to a driver or operator of a vehicle, means a licence or permit issued under the Motor Vehicle Act authorizing the holder of a licence of a designated class to drive or operate a vehicle of the category designated for that class, and includes a learner's licence, and

(b) in relation to a vehicle, means a licence or permit issued in respect of a vehicle under the Motor Vehicle Act or the Commercial Transport Act or a licence or permit for a vehicle issued under any other Act;

"motor vehicle" means a motor vehicle as defined in the Motor Vehicle Act;

"optional insurance contract" means a contract of vehicle insurance other than vehicle insurance provided under the plan, and includes

(a) a binding oral agreement, and

(b) a contract that provides insurance for a vehicle for which, or for the use or operation of which, a permit or licence is not required under the Motor Vehicle Act, if the contract provides that this Act applies;

"owner" means the person in whose name a vehicle is registered and licensed under the Motor Vehicle Act or the Commercial Transport Act;

"owner's certificate" means a certificate issued to an owner under the plan;

"plan" means the plan of universal compulsory vehicle insurance referred to in section 2 and operated by the corporation under Part 1 and the regulations under that Part;

"policy" means the instrument evidencing an optional insurance contract and includes an interim receipt, renewal receipt, or writing evidencing the contract, whether sealed or not;

"premium" means money paid or to be paid by an insured or by an applicant for insurance to an insurer for the issue of a certificate or policy;

"superintendent" means the superintendent under the Financial Institutions Act;

"third party liability insurance coverage" means insurance against liability arising out of

(a) bodily injury to or the death of a person, or

(b) loss of or damage to property,

caused by a vehicle or the use or operation of a vehicle;

"trailer" means a trailer as defined in the Motor Vehicle Act;

"universal compulsory vehicle insurance" means universal compulsory vehicle insurance provided under the plan;

"vehicle" means motor vehicle or trailer;

"vehicle insurance" means insurance

(a) against liability arising out of

(i) bodily injury to or the death of a person, or

(ii) loss of or damage to property,

caused by a vehicle or the use or operation of a vehicle,

(b) against loss of or damage to a vehicle or the loss of use of a vehicle, or

(c) against loss arising from bodily injury or death of an insured caused only by

(i) a vehicle, or

(ii) the use or operation of a vehicle,

but does not include

(d) insurance relating to

(i) a vehicle for which, or for the use or operation of which, a permit or licence is not required under the Motor Vehicle Act unless the contract of insurance provides that this Act applies, or

(ii) any operation, use or loss of use of a vehicle excluded by regulation,

(e) reinsurance undertaken by one insurer for liability for loss or damage assumed by another insurer,

(f) insurance only against one or more of the following:

(i) loss of or damage to a vehicle while in or on described premises;

(ii) loss of or damage to property carried in or on a vehicle;

(iii) liability for loss of or damage to property carried in or on a vehicle, or

(g) insurance solely of the interest of a person who has a lien on, or has as security legal title to, a vehicle and who does not have possession of the vehicle;

"vehicle liability policy" means a certificate or a policy evidencing insurance against liability arising out of

(a) bodily injury to or the death of a person, or

(b) loss of or damage to property,

caused by a vehicle or the use or operation of a vehicle.

(2) The Lieutenant Governor in Council may make regulations that

(a) include any kind or class of vehicle, as defined in the Motor Vehicle Act, within the definition of vehicle for the purposes of this Act, or

(b) exclude any kind or class of vehicle, as defined in the Motor Vehicle Act, from the definition of vehicle for the purposes of this Act.

(3) The Insurance Act does not apply to insurance to which this Act applies.

(4) Section 5 of the Offence Act does not apply to this Act or the regulations.

3 The heading to Part 1 is repealed and the following substituted:

Part 1 -- Universal Compulsory Vehicle Insurance .

4 The following sections are added to Part 1:

Definitions

1.1 In this Part:

"additional premium" means an additional premium charged against an insured under section 35;

"basic premium" means that portion of the premium that is based on criteria or classifications established under section 34, but does not include an additional premium;

"benefits" means the prescribed benefits;

"driver's certificate" means a certificate issued under this Part or the regulations under this Part to a person who, under the Motor Vehicle Act, may obtain a driver's licence, and the certificate may be part of the driver's licence or a separate document;

"highway" means a highway as defined in the Motor Vehicle Act;

"point penalties" means point penalties that may be recorded against the driving record of a driver under the Motor Vehicle Act and regulations, or under this Part and the regulations under this Part.

Application of this Part

1.2 This Part applies to

(a) insurance under the plan that takes effect on or after the date this Act comes into force,

(b) claims under that insurance, and

(c) insureds and the corporation in relation to that insurance.

5 Section 2 is repealed and the following substituted:

Corporation to provide universal compulsory vehicle insurance

2 If, under the Insurance Corporation Act and the regulations under that Act, the Lieutenant Governor in Council authorizes the corporation to operate the plan of universal compulsory vehicle insurance, the corporation must operate the plan of universal compulsory vehicle insurance in accordance with this Act and the regulations.

6 Sections 3 to 6 are repealed.

7 Section 7 is amended

(a) in subsection (1) by striking out "universal compulsory automobile insurance" and substituting "universal compulsory vehicle insurance",

(b) in subsection (1) (c) by striking out "motor vehicle" and substituting "vehicle",

(c) in subsection (1) by striking out everything after the end of paragraph (c) and substituting "from one of the perils mentioned in the regulation caused by a vehicle or its use or operation, or any other risk arising out of its use or operation.", and

(d) by repealing subsections (2), (3) and (4).

8 Section 8 is repealed.

9 Section 9 (2) and (3) is repealed.

10 Section 11 is amended

(a) in subsection (1) by striking out "prescribed by the corporation" and substituting "established by the corporation",

(b) by repealing subsection (2) and substituting the following:

(2) The corporation may require an applicant for insurance or an insured under the plan to provide information, statements and reports relating to or affecting the operation of the plan, in a form established by the corporation. ,

(c) in subsection (3) by striking out "of a motor vehicle" and substituting "of a vehicle",

(d) in subsection (3) by striking out "prescribed" and by adding "in a form established by the corporation" after "the incident", and

(e) in subsection (4) by striking out "prescribed" in both places, by adding "in a form established by the corporation" after "reports and statements" and by adding "in a form established by the corporation" after "methods of making and proving claims".

11 Sections 12, 13, 15 and 16 are repealed.

12 Section 18 is amended

(a) in subsections (1) (a) and (2) by striking out "motor",

(b) in subsection (1) (c) by striking out "motor vehicle liability policy" and substituting "third party liability insurance coverage", and

(c) by repealing subsection (4) and substituting the following:

(4) In an action in another province of Canada against the corporation, or against a person insured with third party liability insurance coverage, arising out of a vehicle accident in that province, the corporation must appear and must not, as to third party liability insurance coverage, set up a defence to a claim under an owner's certificate, including a defence as to the limit or limits of liability, that might not be set up if the claim were under a contract of vehicle insurance that provides third party liability insurance coverage issued in that province.

13 Section 19 is amended

(a) by repealing subsection (1), and

(b) by repealing subsections (2) and (3) and substituting the following:

(2) If a forfeiture under section 75 would appear inequitable, the corporation may relieve a person affected by it from the forfeiture of all or any insurance money.

(3) The corporation must relieve an insured from a forfeiture of the benefits under section 75 that it considers equitable if, as a result of an accident, the insured dies or suffers a loss of function of mind or body that renders the insured permanently incapable of engaging in any occupation for wages or profit.

14 Sections 19.1 and 19.2 are repealed.

15 Section 20 is amended by repealing paragraphs (a) and (b) of the definition of "uninsured motorist" and by adding "third party liability insurance coverage" before "that provides indemnity".

16 Section 21 is repealed.

17 Section 22 (1) is amended by striking out "motor vehicle or trailer" and substituting "vehicle".

18 Section 23 is repealed.

19 Section 24 is amended

(a) in subsections (1), (3), (4), (9), (10) and (11) by striking out "motor vehicle" wherever it appears and substituting "vehicle", and

(b) in subsection (11) by striking out "whether or not the motor vehicle is designated in an unexpired owner's certificate" and substituting "whether or not the vehicle is specified in an unexpired owner's certificate".

20 Sections 25 and 26 are repealed.

21 Section 27 is amended by striking out "within 24 hours" and substituting "as soon as reasonably practicable".

22 Section 28 is amended by striking out "immediately provide the corporation" and substituting "provide the corporation, as soon as reasonably practicable,".

23 Section 29 is amended by striking out "without delay" and substituting "as soon as reasonably practicable".

24 Section 30 is amended by striking out "the superintendent" and substituting "the superintendent under the Motor Vehicle Act".

25 Section 30.1 is amended

(a) in the definition of "motor vehicle indebtedness" by striking out "motor vehicle" and substituting "vehicle",

(b) in subsections (2), (2) (a), (5) and (6) by striking out "motor vehicle indebtedness" and substituting "vehicle indebtedness",

(c) by repealing paragraph (a) of the definition of "vehicle indebtedness" and substituting the following:

(a) amounts owing in respect of universal compulsory vehicle insurance, that are unpaid, ,

(d) in paragraph (e) of the definition of "vehicle indebtedness" by striking out "motor vehicle or trailer" in both places and substituting "vehicle",

(e) in subsection (2) (c) by striking out "universal compulsory automobile insurance" and substituting "universal compulsory vehicle insurance",

(f) in subsection (2) (d) by striking out "or universal compulsory automobile insurance" and substituting "or provide universal compulsory vehicle insurance", and

(g) by adding the following subsection:

(7) Money paid to the corporation by an insured must be applied by the corporation first against vehicle indebtedness of the insured.

26 Section 31 (2) is amended by striking out "benefits or".

27 Section 32 is repealed.

28 Section 34 is amended

(a) in subsection (2) by striking out "motor vehicle or trailer" and substituting "vehicle",

(b) in subsection (4) by striking out "universal compulsory automobile insurance" and substituting "universal compulsory vehicle insurance", and

(c) by repealing subsection (5).

29 Section 36 is amended

(a) in subsection (5) by striking out "of universal compulsory automobile insurance", and

(b) by repealing subsection (6).

30 Section 38 is amended

(a) in subsections (1) and (3) by striking out "motor vehicle or trailer" wherever it appears and substituting "vehicle",

(b) in subsection (1) by repealing paragraphs (a) to (c),

(c) in subsection (1) by adding "the premium for the owner's certificate." after "and the applicant has paid",

(d) in subsection (2) (b) by striking out "and any additional premium established by the corporation", and

(e) in subsection (3) (b) by striking out "motor vehicle and trailer" and substituting "vehicle".

31 Section 39 (1) is amended

(a) by striking out "a permit or licence for a motor vehicle or trailer" and substituting "a licence for a vehicle", and

(b) by striking out "in which the motor vehicle or trailer is designated" and substituting "in which the vehicle is specified".

32 Section 40 (1) and (5) is amended by striking out "motor vehicle or trailer" wherever it appears and substituting "vehicle".

33 Section 41 (1) is amended by striking out "the superintendent imposes under the Motor Vehicle Act" and substituting "the superintendent under the Motor Vehicle Act imposes under that Act".

34 Section 43 is amended by striking out "motor vehicles" wherever it appears and substituting "vehicles".

35 Section 44 (2) is amended by striking out "automobile" and substituting "vehicle".

36 Section 44.1 is repealed.

37 Section 45 is amended

(a) by repealing subsection (1),

(b) in subsection (2) by striking out "Without restricting subsection (1), the Lieutenant Governor in Council may make regulations as follows:" and substituting "Without limiting any power of the Lieutenant Governor in Council to make regulations under any other Part of this Act, the Lieutenant Governor in Council may make regulations under this Part as follows:",

(c) in subsection (2) (a) by striking out "plans of automobile insurance and plans of universal compulsory automobile insurance" and substituting "the plan of universal compulsory vehicle insurance",

(d) in subsection (2) (a) and (e) by striking out "motor vehicles and trailers" and substituting "vehicles",

(e) in subsection (2) (b) by striking out "under any plan" and substituting "under the plan",

(f) by repealing subsection (2) (g),

(g) by repealing subsection (2) (s), (t), (u) and (v),

(h) by repealing subsection (3), and

(i) by repealing subsection (5) and substituting the following:

(5) The Lieutenant Governor in Council may, by regulation, exclude or exempt a nonresident or class of nonresidents and a vehicle or class of them from the operation of all or part of this Part or the regulations under this Part, or all or part of the plan, on the terms and conditions the Lieutenant Governor in Council prescribes.

38 Section 46 is repealed.

39 The following section is added:

Jurisdiction of the commission

46.2 (1) Nothing in this Act limits the jurisdiction of the commission under Part 2 of the Insurance Corporation Act.

(2) In the event of a conflict between this Act and Part 2 of the Insurance Corporation Act, Part 2 of the Insurance Corporation Act applies.

(3) Without limiting subsections (1) and (2) of this section, and despite section 45 (6) of the Insurance Corporation Act, the commission has the jurisdiction to approve, to require replacement of or to override and replace any or all of the following, whether or not prescribed by the Lieutenant Governor in Council, at any time and for any purpose related to rates within the meaning of section 44 (3) (a) of the Insurance Corporation Act:

(a) classes and subclasses of motor vehicles, trailers and drivers of motor vehicles;

(b) basic premiums;

(c) interim premiums;

(d) discounts from premiums;

(e) additional premiums.

40 Part 3 is repealed.

41 The following Parts are added:

Part 4 -- Optional Insurance Contracts

Definitions and interpretation

57 (1) In this Part:

"non-owner's policy" means a vehicle liability policy evidencing an optional insurance contract that insures a person solely in respect of the use or operation by the person or on the person's behalf of a vehicle that is not owned by the person;

"owner's policy" means a vehicle liability policy evidencing an optional insurance contract that insures a person in respect of

(a) the ownership, use or operation of a vehicle that is

(i) owned by him or her, and

(ii) within the description or definition of that vehicle in the policy, and

(b) if the optional insurance contract so provides, in respect of the use or operation of any other vehicle;

"prescribed condition" means a condition prescribed under sections 59 and 72 (a).

(2) For the purposes of this Part, a person is not considered to be the owner of a vehicle only because the person has a lien on the vehicle or has legal title to the vehicle as security.

Application of this Part

58 This Part applies to

(a) optional insurance contracts that are made or renewed in British Columbia and that take effect on or after the date this Act comes into force,

(b) claims under those contracts, and

(c) insureds and insurers in relation to those contracts.

Prescribed conditions for contracts

59 (1) The Lieutenant Governor in Council may prescribe conditions for optional insurance contracts and provide by regulation that any or all of the prescribed conditions

(a) are deemed to form part of every optional insurance contract or of a prescribed class of optional insurance contracts and must be printed on every policy, other than an interim receipt or binder, issued on or after the effective date of the prescribed conditions, with the heading "Prescribed Conditions", or

(b) do not form part of a prescribed class of optional insurance contracts or a specific contract and need not be printed on the policy for an optional insurance contract of that class or a specific contract, if the class of optional insurance contracts or optional insurance contract does not insure against a loss or liability that is specified in the regulations.

(2) Subject to sections 66 and 67 and the regulations, no variation or omission of or addition to a prescribed condition is binding on the insured.

Duty of insurer

60 Every optional insurance contract evidenced by a vehicle liability policy must provide that if a person insured by the contract is involved in an accident resulting from the ownership, use or operation of a vehicle in respect of which insurance is provided under the contract and resulting in loss or damage to persons or property, the insurer must, at its own expense, do the following:

(a) on receipt of notice of a claim for damages brought against an insured, assist the insured by investigating and negotiating a settlement, if in the opinion of the insurer the assistance is necessary;

(b) defend in the name of the insured any action for damages brought against the insured;

(c) pay costs that are prescribed by the regulations.

Coverage of optional insurance contracts

61 (1) An optional insurance contract may only

(a) extend coverage that is specified in a certificate or a policy to a limit that is in excess of that provided by the certificate or policy for every insured, on the same terms and conditions, except as provided in paragraph (c),

(b) provide coverage that is not specified in a certificate or a policy, or

(c) subject to subsections (2), (3) and (4) and the regulations, prohibit a specified person or class of persons from using or operating the vehicle, exclude coverage for a specified risk or provide different limits of coverage for different persons or risks or classes of persons and risks.

(2) If an optional insurance contract contains a prohibition, exclusion or provision referred to in subsection (1) (c), the policy must have printed or stamped on its face in bold type lettering that is at least 12 points in size the words "This policy contains prohibitions relating to specified persons, exclusions of risks or different limits of coverage related to third party liability insurance coverage".

(3) Unless the words in subsection (2) are printed or stamped on the policy in bold type lettering that is at least 12 points in size, the exclusions are not binding on the insured.

(4) An optional insurance contract referred to in subsection (1) must not

(a) prohibit a person who is living with and as a member of the family of the owner of the vehicle from using or operating the vehicle, or

(b) exclude coverage for that person.

(5) Despite any provision in an optional insurance contract extending the limit of coverage specified in a certificate or a policy under subsection (1) (a), the coverage under the optional insurance contract terminates if the coverage provided by the certificate or policy terminates.

(6) Coverage that is prohibited by the regulations is null and void.

(7) Despite any provision of this Act or the regulations, an insurer is not liable to an insured under an optional insurance contract for loss or damage in certain circumstances if

(a) the optional insurance contract relates to a vehicle that is not required under the Motor Vehicle Act to be licensed and insured, and

(b) the owner's policy is endorsed with a statement that the insurer is not liable to the insured for loss or damage in those circumstances.

Coverage of non-owner's policy

62 Every optional insurance contract evidenced by a non-owner's policy insures the person named in it and any other person who is named in the non-owner's policy, against liability arising out of

(a) bodily injury to or the death of a person, or

(b) loss of or damage to property

caused by a vehicle to which the non-owner's policy applies or the use or operation of the vehicle.

Copy of application in policy

63 (1) An insurer who issues a policy evidencing an optional insurance contract must ensure that embodied in, endorsed on or attached to the policy when issued is a copy of whichever of the following is applicable:

(a) the written application for the optional insurance contract, signed by the insured or the insured's agent;

(b) if no signed application is made, a copy of the purported application;

(c) if the application forms part of a larger application, a copy of that part of the larger application or purported application that is material to the optional insurance contract.

(2) If no signed written application is received by the insurer before the issue of the policy, the insurer must deliver or mail to the insured named in the policy, or to the insured's agent, a form of application to be completed and signed by the insured and returned to the insurer.

(3) The insurer must deliver or mail to the insured named in the policy, or to the insured's agent, the policy or a true copy of it and every endorsement or other amendment to the optional insurance contract.

(4) If a written application signed by the insured or the insured's agent is made for an optional insurance contract, the policy evidencing the optional insurance contract is deemed to be in accordance with the application unless the insurer points out in writing to the insured named in the policy in what respect the policy differs from the application, and in that event the insured is deemed to have accepted the policy unless within one week from the receipt of the notification the insured informs the insurer in writing that the insured rejects the policy.

(5) On every application form and policy there must be printed or stamped on its face in bold type lettering that is at least 12 points in size a copy of section 75.

(6) In this section, a reference to a written application that is signed by the insured or the insured's agent includes an electronic application with an electronic signature of the insured or the insured's agent.

Use of statements in application for optional insurance contract

64 (1) A statement of the applicant must not be used in defence of a claim under the optional insurance contract unless it is contained in the signed written application or, if no signed written application is made, unless it is contained in the purported application, or part of it, that is embodied in, endorsed on or attached to the policy.

(2) A statement contained in the purported application, or part of it, other than a statement describing the risk and the extent of the insurance, must not be used in defence of a claim under the optional insurance contract unless the insurer proves that the applicant made the statement attributed to the applicant in the purported application, or part of it.

Limits on physical damage

65 Subject to the regulations, an insurer may provide for exclusions and limits of loss in an optional insurance contract, in respect of loss of or damage to or the loss of use of the vehicle.

Agreement for partial payment of claim by insured

66 (1) Nothing in this Part or the regulations under this Part precludes an insurer from entering into an agreement with its insured under an optional insurance contract providing that the insured will reimburse the insurer in an agreed amount in respect of any claim by or judgment in favour of a third party against the insured.

(2) An agreement referred to in subsection (1) may be enforced against the insured.

Partial payment of loss clause

67 (1) An optional insurance contract providing insurance against loss of or damage to a vehicle or the loss of use of it may contain a clause to the effect that, in the event of loss, the insurer must pay only

(a) an agreed portion of any loss that may be sustained, or

(b) the amount of the loss after deduction of a sum specified in the policy,

and in either case not exceeding the amount of the insurance.

(2) If an optional insurance contract contains a clause referred to in subsection (1), the policy must have printed or stamped on its face in bold type lettering that is at least 12 points in size the words "This policy contains a partial payment of loss clause".

(3) Unless the words in subsection (2) are printed or stamped on the policy in bold type lettering that is at least 12 points in size, the clause is not binding on the insured.

Relief from forfeiture

68 If there has been

(a) imperfect compliance with a term or condition of an optional insurance contract as to the proof of loss to be given by the insured or other requirement of the insured with respect to the loss, and a consequent forfeiture under section 75, or

(b) a termination of the optional insurance contract by a notice that was not received by the insured owing to the insured's absence from the address to which the notice was addressed and a consequent denial of a claim

and the court considers the forfeiture or denial inequitable on that ground, the court may, on terms it considers just, relieve against the forfeiture or denial.

Persons forbidden to act as agent

69 A person carrying on the business of financing the sale or purchase of vehicles and a vehicle dealer, insurance agent or broker, and an officer or employee of such a person, dealer, agent or broker, must not act as the agent of an applicant for the purpose of signing an application for an optional insurance contract.

Protection of insurance agent commission

70 (1) In this section, "agent" means an insurance agent licensed under Division 2 of Part 6 of the Financial Institutions Act and authorized by a licensed insurer on its behalf to solicit and receive applications for insurance and to collect premiums, and whose compensation or profit for that consists wholly of a commission on premiums derived from that business.

(2) The commission, if any, on any policy issued at the head office of an insurer in British Columbia must be paid to an agent, and there must be written on the policy the words "Issued on behalf of ________________, resident authorized agent at ________________", with the name of the agent and of the place where the agent carries on business.

(3) The person in charge of the head office of an insurer in British Columbia must immediately, on the issue of a policy at the head office, notify the agent of the date of the policy, the name of the insured and the vehicle insured, if any.

Statistical information

71 (1) The minister may enter into an agreement with a person or agency to

(a) compile information provided by insurers, and

(b) make an analysis of the information available to the superintendent, insurers and the public.

(2) If the minister enters into an agreement referred to in subsection (1), the minister must provide insurers with a copy of the agreement as soon as practicable.

(3) The person or agency referred to in subsection (1) must not disclose the information provided by an insurer under this section except to the superintendent or as required by law.

Power to make regulations

72 Without limiting any power of the Lieutenant Governor in Council to make regulations under any other Part of this Act or under section 73, the Lieutenant Governor in Council may make regulations under this Part as follows:

(a) prescribing terms and conditions that are required to be contained in optional insurance contracts or in a prescribed class of optional insurance contracts;

(b) providing that some or all of the prescribed conditions do not form part of a prescribed class of optional insurance contracts or a specific contract if the class of optional insurance contracts or specific contract do not insure against a prescribed loss or liability;

(c) permitting the superintendent to approve forms of application, policy or endorsement in respect of vehicle insurance or a class of forms, and to revoke approval of a form or a class of forms;

(d) requiring forms of application, policy or endorsement in respect of vehicle insurance or a class of forms, to be approved by the superintendent;

(e) authorizing the superintendent to approve a form of policy or part of it or endorsement evidencing an optional insurance contract that varies, omits or adds to any prescribed condition in prescribed circumstances;

(f) permitting insurers to file with the superintendent and use a form or class of forms that has not been approved by the superintendent until the superintendent has given written notice that the form or class of forms is not approved;

(g) prohibiting the use of a form or class of forms that has not been approved by the superintendent;

(h) requiring the superintendent to give written reasons in prescribed circumstances for approving or not approving a form or class of forms or for revoking an approval;

(i) permitting an insurer to require information from an insured that is additional to that in a form approved by the superintendent and exempting that information from the application of sections 64 and 75;

(j) respecting nuclear energy hazard liability insurance;

(k) prohibiting insurance or coverage against a class of risk or peril;

(l) prescribing circumstances when an insurer may provide that it is not liable under an optional insurance contract;

(m) respecting an evaluation process for settling disputes between an insurer and an insured about the nature and extent of repairs required for a vehicle, replacement of a vehicle or the amount payable in respect of direct loss of or damage to the vehicle and how the costs of the evaluation are paid;

(n) exempting prescribed disputes or disputes in prescribed circumstances from the evaluation process;

(o) prescribing the costs that must be paid by an insurer under section 60;

(p) providing for exclusions of coverage for specified persons or risks;

(q) providing for different limits of loss or liability for different people insured under an optional insurance contract;

(r) excluding the operation, use or loss of a vehicle from the definition of "vehicle insurance".

Power to make regulations establishing an insurer of last resort

73 Without limiting any power of the Lieutenant Governor in Council to make regulations under any other Part of this Act or under section 72, the Lieutenant Governor in Council may make regulations as follows:

(a) requiring an insurance company to be incorporated under the Financial Institutions Act within a specified period of time by insurers that are authorized to carry on vehicle insurance business in British Columbia;

(b) specifying the purpose of the insurance company;

(c) requiring the insurance company to apply for a business authorization under the Financial Institutions Act;

(d) requiring every insurer that is authorized to carry on vehicle insurance business in British Columbia to be a member of the insurance company;

(e) requiring the insurance company to enter into optional insurance contracts with owners of vehicles who are unable to enter into optional insurance contracts with any other insurer;

(f) requiring the insurance company to establish the circumstances under which it determines that an owner is unable to enter into an optional insurance contract with any other insurer and requiring the superintendent to approve those circumstances;

(g) respecting coverage, limits of loss or liability and other terms and conditions that must be included in an optional insurance contract provided by the insurance company;

(h) exempting the insurance company from a provision of the Financial Institutions Act and the regulations under that Act;

(i) specifying the duration of an exemption under paragraph (h);

(j) applying provisions of the Utilities Commission Act to the insurance company.

Part 5 -- General Provisions

Application of this Part

74 Without limiting Parts 1 and 4, this Part applies to

(a) insurance under the plan and optional insurance contracts that

(i) is obtained or renewed in British Columbia, and

(ii) takes effect on or after the date this Act comes into force,

(b) claims under that insurance, and

(c) insureds and insurers in relation to that insurance.

Forfeiture

75 All claims by or in respect of the applicant or insured are invalid and the right of an applicant, an insured, or a person claiming through or on behalf of an applicant or insured or of a person claiming as a dependant of the applicant or the insured, to insurance money under the plan or an optional insurance contract, is forfeited if

(a) the applicant for coverage under the plan or the optional insurance contract

(i) to the prejudice of the insurer, falsely describes the vehicle in respect of which the application is made, or

(ii) knowingly misrepresents or fails to disclose in the application a fact required to be stated in it,

(b) the insured violates a term or condition of or commits a fraud in relation to the plan or the optional insurance contract, or

(c) the insured makes a wilfully false statement with respect to the claim.

Third party rights

76 (1) In this section and section 77, "claimant" means a person who has a claim or a judgment against an insured for which indemnity is provided by the plan or an optional insurance contract.

(2) Even though he or she does not have a contractual relationship with the insurer, a claimant is entitled, on recovering a judgment against an insured or making a settlement with the insurer, to have the insurance money applied toward the claimant's judgment or settlement and toward any other judgments or claims against the insured who is covered by the indemnity.

(3) The claimant may, on behalf of himself or herself and all persons having judgments or claims against the insured who is covered by the indemnity, bring an action against the insurer to have the insurance money applied in accordance with subsection (2).

(4) The insurer may at any stage compromise or settle the claim.

(5) A creditor of the insured is not entitled to share in the insurance money unless the creditor's claim is one for which indemnity is provided for by the plan or the optional insurance contract.

(6) The following do not prejudice the right of a person entitled under subsection (2) to have the insurance money applied toward the person's judgment or settlement, and are not available to the insurer as a defence to an action under subsection (3):

(a) assignment, transfer, surrender, cancellation, suspension, waiver or discharge of coverage under the plan or an optional insurance contract or under a provision of the plan or an optional insurance contract, or of an interest in either of them or of insurance money payable under either of them, made by the insured after the event giving rise to a claim under the plan or optional insurance contract occurs;

(b) an act or default of the insured before or after the event giving rise to a claim under the plan or an optional insurance contract in contravention of this Act or the regulations or of the plan or optional insurance contract;

(c) contravention of the Criminal Code or of a law or statute of any province, state or country by the owner or driver of the vehicle specified in the owner's certificate or policy.

(7) An action must not be brought against an insurer under subsection (3) after the expiration of one year from the final determination of the action against the insured, including appeals, if any.

(8) It is not a defence to an action under subsection (3) that an instrument issued as a vehicle liability policy by an insurer and alleged by a party to the action to be such a policy is not a vehicle liability policy and this section and sections 77 and 78 apply.

Rights of insurer

77 (1) Despite section 76 (6), an insurer may avail itself, against a person claiming under section 76 (3) in respect of property damage under an optional insurance contract, of any defence that the insurer is entitled to set up against the insured.

(2) Without limiting section 30.1 and in addition to any other remedy, if an insurer has paid an amount to a person under section 76 by way of settlement or otherwise, that it would not otherwise be liable to pay, and has personally delivered or forwarded by registered mail to the last known address of the insured a demand for reimbursement of that amount, the insured is liable to reimburse the insurer that amount, and the insurer may enforce the right by action in court.

(3) Whether or not the insured has filed a defence in the action, if an insurer denies liability to an insured under the plan or an optional insurance contract, the insurer may issue and serve a third party notice and be made a third party in any action to which the insured is a party and in which a claim is made against the insured by a party with respect to which it is or might be asserted that indemnity is provided by the plan or an optional insurance contract.

(4) On being made a party under subsection (3), the insurer has the right to contest the insured's liability to any party claiming against the insured, and to contest the amount of any claim made against the insured, as if the insurer were a defendant in the action, including the right to

(a) deliver a statement of defence to the claim of any party claiming against the insured,

(b) deliver other pleadings,

(c) have production and discovery from any party adverse in interest, and

(d) examine and cross examine witnesses at trial.

(5) If an insured agrees that the insurer would not, except for section 76, be or become liable to make a payment in respect of a claim against the insured, the insured may at any time undertake to reimburse the insurer by

(a) giving a written undertaking to repay the amount paid by the insurer to or on behalf of the claimant, and

(b) executing a consent to the payment by the insurer of that amount.

(6) The insurer may, on payment of an amount under section 76 that it would not otherwise be liable to pay, require an assignment of the judgment from the claimant in a form registrable under the Land Title Act, to the extent of that payment.

(7) An insurer to whom an assignment is provided under subsection (6) may register that assignment under the Land Title Act unless, within 30 days after the date of a demand provided to the insured under subsection (2) of this section, the insured delivers to the chief agency or head office of the insurer in British Columbia a written notice by which the insured disputes his or her liability to reimburse the insurer.

(8) If the insurer has paid money in satisfaction of a claim, settlement or judgment under section 76 or by agreement under subsection (5) of this section, and the insured has not reimbursed the amount for which the insured is liable under subsection (2) or that the insured has agreed to reimburse the insurer under subsection (5)

(a) the insurer may agree to accept payment in installments from the insured, and

(b) the insured may, on notice to the insurer, apply to the Supreme Court for an order that he or she be permitted to pay the insurer in installments in amounts and at times determined by the court.

(9) The insurer may apply to court to require any other insurers liable to indemnify the insured in whole or in part in respect of judgments or claims to which reference is made in section 76 (2) to

(a) be made parties to the action, and

(b) contribute according to their respective liabilities, whether the contribution is rateably or by way of first loss or excess insurance, as the case may be.

Payment of insurance money into court

78 (1) The insurer may apply to the court without notice to any person for an order allowing it to pay the insurance money into court, and the court may so order, on the notice, if any, it considers necessary if

(a) a person obtains a judgment against an insured and is entitled to bring an action under section 76 (3), and

(b) there are or may be other claimants, or there is no willing person capable of giving and authorized to give a valid discharge for payment.

(2) If an insurer pays money into court in accordance with an order made under subsection (1), the registrar or other proper officer of the court may give a receipt to the insurer for that payment.

(3) An insurer to whom a receipt is given under subsection (2) is discharged from

(a) any liability for the money paid, and

(b) any claims in respect of the money paid that might be made by or on behalf of the persons entitled to the money.

Defence if more than one contract

79 (1) The insured or an insurer may apply to the court and the court must give directions it considers proper with respect to the performance of the obligation to defend in the name and on behalf of the insured if

(a) a person is insured under more than one optional insurance contract evidenced by vehicle liability policies or under the plan and one or more optional insurance contracts evidenced by vehicle liability policies, and

(b) a question arises under section 60 (b) between an insurer and the insured or between the insurers as to which insurer must undertake the obligation to defend.

(2) Subsection (1) applies whether

(a) the insurance provided by the optional insurance contract is first loss or excess, or

(b) an insurer accepts or denies liability under the plan or its optional insurance contract.

(3) On an application under subsection (1), the only parties entitled to notice and to be heard are the insured and his or her insurers, and no material or evidence used or taken on the application is admissible on the trial of an action brought against the insured for bodily injury to or the death of a person or loss of or damage to property caused by the vehicle or the use or operation of the vehicle in respect of which the insurance is provided.

(4) An order under subsection (1) does not affect the rights and obligations of the insurers in respect of payment of any indemnity under their respective policies.

(5) If insurance is provided to the insured under more than one optional insurance contract or under the plan and one or more optional insurance contracts and one or more of them are excess insurance, the insurers must, as between themselves, contribute to the payment of expenses, costs and reimbursement for which provision is made in section 60 and the regulations in accordance with their respective liabilities for damages awarded against the insured.

Other insurance

80 (1) If there is an optional insurance contract and any other vehicle insurance, including insurance under the plan or another optional insurance contract, none of which is excess to the others, that insures against the same loss or liability, an insurer is liable only for its rateable proportion of any loss, liability or damage.

(2) An insured must notify the insurers of any other insurance that insures against the same loss.

(3) In this section, "rateable proportion" means

(a) if there are 2 insurers liable and the certificate or policy specifies the same limit, each of the insurers is liable to share equally in any liability, expense, loss or damage,

(b) if there are 2 insurers liable and the certificate or policy specifies different limits, the insurers are liable to share equally up to the limit of the smaller limit, or

(c) if there are more than 2 insurers liable, paragraphs (a) and (b) apply with the necessary changes and so far as applicable.

Unnamed insured

81 (1) A person insured under the plan or an optional insurance contract, but not named in the owner's certificate or policy may recover insurance money in the same manner and to the same extent as if the person were the named insured in the owner's certificate or policy.

(2) For the purposes of subsection (1), the person referred to in that subsection, in his or her own name and on his or her own behalf, may exercise the same rights and is subject to the same obligations as the insured as if the person were the named insured in the owner's certificate or policy.

Insured to give notice and disclose damage

82 (1) Every insured against whom an action is commenced for damages caused by a vehicle or the use or operation of a vehicle must give notice of it in writing to the insurer within 5 days after service of every notice or process in the action.

(2) Every insured against whom an action is commenced for damages caused by a vehicle or the use or operation of a vehicle must, on recovery of a judgment against the insured, disclose to a judgment creditor entitled to the benefit of any vehicle liability policy particulars of the owner's certificate or policy within 10 days after written demand for it.

Liability reduced

83 (1) In this section and in section 84, "benefits" means benefits

(a) within the definition of section 1.1, or

(b) that are similar to those within the definition of section 1.1, provided under vehicle insurance wherever issued and in effect,

but does not include a payment made pursuant to third party liability insurance coverage.

(2) A person who has a claim for damages and who receives or is entitled to receive benefits respecting the loss on which the claim is based, is deemed to have released the claim to the extent of the benefits.

(3) Nothing in this section precludes the insurer from demanding from the person referred to in subsection (2), as a condition precedent to payment, a release to the extent of the payment.

(4) In an action in respect of bodily injury or death caused by a vehicle or the use or operation of a vehicle, the amount of benefits paid, or to which the person referred to in subsection (2) is or would have been entitled, must not be referred to or disclosed to the court or jury until the court has assessed the award of damages.

(5) After assessing the award of damages under subsection (4), the amount of benefits referred to in that subsection must be disclosed to the court, and taken into account, or, if the amount of benefits has not been ascertained, the court must estimate it and take the estimate into account, and the person referred to in subsection (2) is entitled to enter judgment for the balance only.

(6) If, for the purpose of this section or section 84, it is necessary to estimate the value of future payments that the corporation or the insurer is authorized or required to make under the plan or an optional insurance contract, the value must be estimated according to the value on the date of the estimate of a deferred benefit, calculated for the period for which the future payments are authorized or required to be made.

Subrogation

84 (1) On making a payment of benefits or insurance money or assuming liability for payment of benefits or insurance money, an insurer

(a) is subrogated to and is deemed to be the assignee of all rights of recovery against any other person liable in respect of the loss, damage, bodily injury or death of a person to whom, on whose behalf or in respect of whom the payment of benefits or insurance money is made or to be made, and

(b) may bring action in the name of the insured or in its own name to enforce the rights referred to in paragraph (a).

(2) If money is recovered under subsection (1) and the burden of the loss is shared by the insurer and insured, the net amount, after deduction of the costs of recovery, must be divided between them in the same proportions as they bear the loss.

(3) If the interest of the insured referred to in subsection (1) is limited to loss of or damage to a vehicle or loss of its use, the insurer has conduct of the action.

(4) If the insured's interest is not one described in subsection (3), and the insured and the insurer cannot agree as to

(a) the lawyers to be instructed to bring the action in the name of the insured,

(b) the conduct of the action or matters pertaining to it,

(c) an offer of settlement or its apportionment, whether an action has been commenced or not,

(d) acceptance of money paid into court or its apportionment,

(e) apportionment of costs, or

(f) commencement or continuance of an appeal,

either party may apply to the court for determination of the matters in question, and the court must make the order it considers reasonable having regard to the interests of both parties.

(5) On an application under subsection (4), only the insured and the insurer are entitled to notice and to be heard, and material or evidence used or taken on the application is not admissible on the trial of an action brought by or against the insured or the insurer.

(6) A settlement or release does not restrict the rights of the insured or the insurer under this section unless the insured or the insurer, as the case may be, concurred in it.

Waiver of term or condition

85 (1) An insurer may for a particular case waive a term or condition of the plan or an optional insurance contract.

(2) A term or condition of the plan or an optional insurance contract is not waived by the insurer in whole or in part unless the waiver is in writing and signed by a person authorized for that purpose by the insurer.

(3) Neither the insurer nor the insured waives any term or condition of the plan or an optional insurance contract by any act relating to the appraisal of the amount of loss or to the delivery and completion of proofs or to the investigation or adjustment of any claim under the plan or an optional insurance contract.

Effect of payment under the plan or an optional insurance contract

86 (1) If an insurer makes a payment on behalf of an insured under the plan or an optional insurance contract to a person who is or alleges himself or herself to be entitled to recover from the insured under the plan or optional insurance contract, the payment

(a) is not, unless the insurer otherwise agrees, an admission of liability, and does not prejudice the rights of the insured or the insurer, and

(b) constitutes, to the extent of the payment, a release by the person or his or her personal representative of any claim that the person or the personal representative or any person claiming through or under him or her, or by virtue of the Family Compensation Act, may have against the insured and the insurer.

(2) Nothing in this section precludes an insurer making the payment from demanding, as a condition precedent to the payment, a release from the person, or his or her personal representative, or any other person, to the extent of that payment.

(3) If a person commences an action, the fact of any payment referred to in subsection (1) must not be disclosed to the court or to the jury, and the court must adjudicate on the matter without reference to any payment referred to in that subsection but, after awarding damages and costs, if any, the payment must be disclosed and must be taken into account and the person is only entitled to judgment to be entered for the net amount, if any.

Territorial limits

87 Subject to the regulations under Part 1 in respect of the plan, insurance under the plan or an optional insurance contract applies in respect of bodily injury, death, loss or damage, or liability arising from bodily injury, death, loss or damage occurring in Canada or the United States of America or on a vessel travelling between Canada and the United States of America, but does not apply elsewhere.

Out of province use

88 Every vehicle liability policy issued in British Columbia must provide and is deemed to provide that, in the case of liability arising out of the ownership, use or operation of the vehicle in any other province or territory of Canada or in any jurisdiction of the United States of America,

(a) the insurer is liable up to the minimum limits of loss or liability in that province, territory or jurisdiction if those limits are higher than the limits specified in the policy,

(b) the insurer must not set up any defence to a claim that might not be set up if the policy were a policy evidencing a contract of vehicle insurance that provides third party liability insurance coverage issued in that province, territory or jurisdiction, and

(c) the insured appoints the insurer the insured's irrevocable attorney to appear and defend in any other province or territory of Canada or jurisdiction of the United States of America in which an action is brought against the insured arising out of the ownership, use or operation of the vehicle.

Proof of intoxication

89 (1) In an action, cause or proceeding in which this Act or the regulations and the plan or an optional insurance contract are invoked and it is material to establish that a person using or operating a vehicle was doing so while under the influence of intoxicating liquor or drugs to such an extent as to be for the time being incapable of the proper control of the vehicle, proof must be submitted and be admitted as evidence that the person was convicted of an offence committed at the material time under section 253 or 254 (5) of the Criminal Code, whether or not that person

(a) is a party to the action, cause or proceeding,

(b) is a witness at the trial, or

(c) has first been questioned as to whether he or she has been convicted of that offence.

(2) For the purpose of subsection (1), a certificate containing the substance and effect of the conviction and purporting to be signed by the officer having custody of the records of the court in which the person was convicted or by the officer's deputy is, on proof of the identity of the person convicted, sufficient evidence of the conviction without proof of the signature or official character of the person by whom the certificate purports to have been signed.

Limitation on recovery for acts of violence

90 If the dominant cause of any bodily injury to or death of a person is the use of any weapon or any object, other than a vehicle, used as a weapon,

(a) the insurer is not liable under this Act or the regulations, including, without limitation, under section 20, 24, 76, 77 or 78 or under an optional insurance contract or the plan, to indemnify or to pay any insurance money to or on behalf of

(i) the person using the weapon or object,

(ii) the person suffering the bodily injury or death, or

(iii) a spouse, child, parent or personal representative of a person referred to in subparagraph (i) or (ii), and

(b) the person using the weapon or object is not a designated defendant, as that term is defined in section 95, for the purposes of Part 6.

Limitation on recovery in relation to stolen vehicles

91 (1) This section applies to a person who

(a) suffered bodily injury, death or loss of or damage to property that is caused by the use or operation of a vehicle, and

(b) at the time of the accident as a result of which the bodily injury, death or loss of or damage to property was suffered, was an operator of, or a passenger in or on, a vehicle that the person knew or ought to have known was being operated without the consent of the owner.

(2) Despite the Negligence Act and section 100 of this Act,

(a) if 2 or more persons are found at fault for the bodily injury, death or loss of or damage to property referred to in subsection (1), they are liable to the person referred to in that subsection for any damages awarded for that bodily injury, death or loss of or damage to property in the degree to which they are respectively found to have been at fault and are not liable to make contribution to and indemnify each other respecting that liability or any payment made in relation to it, and

(b) a person referred to in subsection (1) is not entitled to any recovery from the corporation under section 20.

Payment to minor

92 (1) A payment of insurance money for or on behalf of a minor, or a person with a mental disorder as defined under the Mental Health Act, who does not have a committee, must be made to the Public Guardian and Trustee, to be administered as he or she considers advisable, and the Public Guardian and Trustee may make arrangements with other persons, societies or agencies for this purpose.

(2) Subsection (1) applies also in respect of an adult who is incapable of making decisions about his or her financial affairs, business or assets and does not have a representative authorized under the Representation Agreement Act or an attorney appointed by an enduring power of attorney under section 8 of the Power of Attorney Act to make those decisions.

(3) Subsection (1) does not apply to a payment of insurance money made for or on behalf of a minor as indemnity for the loss of, damage to or the loss of use of property.

Family exclusion clauses

93 A provision in the plan or an optional insurance contract that the insurer is not liable to indemnify a person insured under the plan or optional insurance contract for any liability resulting from bodily injury to or the death of the daughter, son, husband or wife of that person has no effect after April 16, 1985, whether the insurance under the plan or the optional insurance contract took effect before or after that date.

Power to make regulations under this Part

94 (1) Without limiting any power of the Lieutenant Governor in Council to make regulations under any other Part of this Act, the Lieutenant Governor in Council may make regulations referred to in section 41 of the Interpretation Act.

(2) Without limiting subsection (1), the Lieutenant Governor in Council may make regulations as follows:

(a) exempting any person or class of persons from a provision of this Act or the regulations under this Act;

(b) respecting the priority of claims under the plan or optional insurance contracts;

(c) defining for the purposes of the regulations under this Act words or expressions not defined in this Act;

(d) providing that a contravention of a regulation under this Act is an offence.

(3) In making a regulation under this Act, the Lieutenant Governor in Council may make different regulations for different persons, places, things or transactions, or classes of persons, places, things or transactions.

Part 6 -- Vehicle Actions

Definitions

95 In this Part:

"accident" means an unintentional mishap occurring in British Columbia as a result of which a person suffers bodily injury, death or loss of or damage to property that arises out of the use or operation of a vehicle;

"designated defendants", subject to section 90 (b), means, in relation to an accident, the following persons:

(a) each owner of a vehicle involved in the accident;

(b) each operator of or passenger in or on a vehicle involved in the accident and each person vicariously liable for that individual;

(c) any other individual who, as a result of that individual's acts or omissions at the scene of the accident, has some involvement in the accident and each person vicariously liable for that individual,

and, in relation to a claim made under section 20 or an action brought under section 24, includes the corporation;

"net income loss", in relation to a person who suffered loss of income as a result of an accident is, for any period,

(a) if the person is a person referred to in section 2 (1) of the Income Tax Act, the gross income that the person lost in that period less the amount that would have been payable on that gross income for the following:

(i) income tax under the Income Tax Act, as that Act read on December 31 of the calendar year before the calendar year in respect of which the net income loss is to be determined, calculated in accordance with the regulations and with reference to prescribed deductions and tax credits;

(ii) income tax under the Income Tax Act (Canada) as that Act read on December 31 of the calendar year before the calendar year in respect of which the net income loss is to be determined, calculated in accordance with the regulations under, and with reference to deductions and tax credits prescribed under, this Act;

(iii) premiums under the Employment Insurance Act (Canada), as that Act read on December 31 of the calendar year before the calendar year in respect of which the net income loss is to be determined, or

(b) for any other person, the gross income that the person lost in that period less the following amounts calculated in accordance with the regulations under this Act:

(i) the amount that would have been payable as taxes on that gross income according to the tax laws in the jurisdiction in which the person is liable to pay tax on income, as those laws read on December 31 of the calendar year before the calendar year in respect of which the net income loss is to be determined, calculated with reference to deductions and tax credits prescribed under this Act;

(ii) the premiums or other amounts, if any, that would have been payable in respect of that gross income according to the laws in the jurisdiction in which the person is liable to pay tax on income, as those laws read on December 31 of the calendar year before the calendar year in respect of which the net income loss is to be determined, for a purpose similar or equivalent to that of the Employment Insurance Act (Canada);

"vehicle action" means an action brought in British Columbia in which damages are claimed for bodily injury, death or loss of or damage to property that arises out of the use or operation of a vehicle.

Alternate dispute resolution

96 (1) The Lieutenant Governor in Council may make regulations respecting mediation in vehicle actions including, without limitation, regulations

(a) providing to a party to a vehicle action the ability to require the parties to engage in mediation and setting out when and how that ability may be exercised and prescribing any other results that flow from the exercise of that ability, and

(b) respecting

(i) the forms or procedures that must or may be used or followed before, during and after the mediation process,

(ii) the requiring and maintaining confidentiality of information disclosed for the purposes of mediation,

(iii) the circumstances and manner in which a party to a vehicle action may opt out of or be exempted from mediation,

(iv) the costs and other sanctions that may be imposed in relation to mediation, including, without limitation, in relation to any failure to participate in mediation when and as required or otherwise to comply with the regulations,

(v) the mediators' fees and disbursements, and

(vi) qualifications required for, and the selection and identification of, individuals who may act as mediators in the mediation process contemplated by these regulations.

(2) If and to the extent that there is any conflict between the regulations made under subsection (1) and any other enactment, including, without limitation, the rules of any court, the regulations made under subsection (1) apply.

(3) Regulations made under subsection (1) may provide for a mediation process to be applicable to vehicle actions brought out of one or more court registries and may be different for vehicle actions brought out of different court registries.

(4) Without limiting subsections (1) to (3) or any other enactment and without limiting the right of the corporation or an insurer to use any method it considers appropriate to resolve any dispute, the Lieutenant Governor in Council may make regulations respecting dispute resolution procedures, including, without limitation, arbitration and mediation procedures, that the corporation or an insurer may make available to any person who wishes to use them to resolve disputes in relation to any insurance money claimed or payable under this Act or the regulations, or any other disputes in relation to the administration of this Act and the regulations.

Application of sections 98 and 100

97 Sections 98 and 100 apply only to causes of action arising out of an accident that occurs after June 17, 1997.

Recovery for loss of income

98 Despite any other enactment or rule of law but subject to this Part, a person who suffers a loss of income as a result of an accident or, if deceased, his or her personal representative, is entitled to recover from designated defendants, as damages for the income loss suffered after the accident and before the first day of trial of any action brought in relation to it, not more than the net income loss that the person suffered in that period as a result of the accident.

Structured judgments

99 (1) The court must order that an award for pecuniary damages in a vehicle action be paid periodically, on the terms the court considers just,

(a) if the award for pecuniary damages is, after section 92 has been applied, at least $100 000 and the court considers it to be in the best interests of the plaintiff, or

(b) if

(i) the plaintiff requests that an amount be included in the award to compensate for income tax payable on income from investment of the award, and

(ii) the court considers that the order, that the award be paid periodically, is not contrary to the best interests of the plaintiff.

(2) Despite subsection (1), the court must not make an order under this section

(a) if one or more of the parties in respect of whom the order would be made satisfies the court that those parties do not have sufficient means to fund the order, or

(b) if the court is satisfied that an order to pay the award periodically would have the effect of preventing the plaintiff or another person from obtaining full recovery for damages arising out of the accident.

(3) If the court does not make an order for periodic payments under this section, it may make an award for damages that includes an amount to offset liability for income tax on income from investment of the award.

Apportionment

100 (1) This section applies in respect of a vehicle action in which the court determines that loss of income has been caused by the fault of 2 or more persons at least one of whom is a designated defendant.

(2) Despite the Negligence Act, if, in a vehicle action, the plaintiff is found to be entitled to recover damages for loss of income suffered after the accident and before the first day of trial of any action brought in relation to it,

(a) all of the defendants whom the court determines were at fault for that loss of income are liable, in accordance with the Negligence Act, to the plaintiff for the net income loss that the plaintiff suffered in that period as a result of the accident, and

(b) the court must determine the degree to which defendants who are not designated defendants were at fault for that loss of income, and those defendants

(i) are liable, in accordance with the Negligence Act, for that portion of the difference between

(A) the net income loss that the plaintiff suffered in that period as a result of the accident, and

(B) the gross income that the plaintiff would have earned in that period had the accident not occurred

that is proportionate to the degree to which those defendants are determined to be at fault for the loss of income, and

(ii) are not entitled to seek contribution or indemnification from designated defendants respecting that liability or any payment made in relation to it.

42 The Supplement to the Insurance (Motor Vehicle) Act is repealed.

 
Consequential Amendments and Transitional Provisions

Changes Consequential to New Title

43 The Acts listed in the left hand column of the Schedule to this Act are amended in the provisions listed opposite them in the right hand column of the Schedule by striking out "Insurance (Motor Vehicle) Act" wherever it appears and substituting "Insurance (Vehicle) Act".

 
Business Corporations Amendment Act, 2003

44 Section 195 of the Business Corporations Amendment Act, 2003, is repealed.

 
Commercial Transport Act

45 Section 1 of the Commercial Transport Act, R.S.B.C. 1996, c. 58, is amended by repealing the definition of "motor vehicle liability policy" and substituting the following:

"motor vehicle liability policy" means a certificate issued under Part 1 of the Insurance (Vehicle) Act and the regulations under that Part; .

46 Section 6 is amended

(a) in subsection (3) (b) by striking out "in accordance with the Insurance (Motor Vehicle) Act and its regulations,",

(b) in subsection (4) (b) by striking out "prescribed" and substituting "established", and

(c) in subsection (5) by adding "established under the Insurance (Vehicle) Act" after "insurance premiums".

 
Estate Administration Act

47 Section 61 (1) (a) and (2) of the Estate Administration Act, R.S.B.C. 1996, c. 122, is amended by striking out "motor vehicle liability policy" in both places and substituting "vehicle liability policy".

 
Financial Institutions Act

48 The Financial Institutions Act, R.S.B.C. 1996, c. 141, is amended by adding the following section:

Requirements of out of province insurers

92.1 (1) In this section, "insured", "insurer", "policy", "third party liability insurance coverage", "vehicle insurance" and "vehicle liability policy" have the same meanings as in the Insurance (Vehicle) Act.

(2) An insurer that issues a policy evidencing a contract of vehicle insurance that provides third party liability insurance coverage outside British Columbia must file with the superintendent, in a form established by the superintendent,

(a) a power of attorney authorizing the superintendent to accept service of notice or process for the insurer in any action or proceeding against the insurer arising out of a vehicle accident in British Columbia, and

(b) an undertaking

(i) to appear in any action or proceeding against the insurer or its insured arising out of a vehicle accident in British Columbia, and of which the insurer has knowledge,

(ii) that on receipt from the superintendent of any notice or process served on the superintendent in respect of its insured, or in respect of its insured and another or others, and sent by the superintendent to the insurer as provided, the insurer will immediately have the notice or process personally served on its insured,

(iii) not to set up any defence to any claim, action or proceeding, under a policy issued by the insurer, that might not be set up if the policy had been issued in British Columbia in accordance with the law of British Columbia relating to vehicle liability policies, and

(iv) to satisfy up to the limits of liability stated in the policy, and in any event to an amount not less than the limits of liability established under Part 1 of the Insurance (Vehicle) Act and the regulations under that Part any judgment rendered against the insurer or its insured by a court in British Columbia in the action or proceeding referred to in subparagraph (iii).

49 Section 244 (2) is amended by adding the following paragraph:

(a.1) does not comply with regulations under section 72 (d), (f) or (g) or 73 of the Insurance (Vehicle) Act, .

 
Insurance Act

50 Section 1 of the Insurance Act, R.S.B.C. 1996, c. 226, is amended

(a) by repealing the definitions of "automobile", "motor vehicle liability policy", "non-owner's policy" and "owner's policy", and

(b) by adding the following definition:

"vehicle" has the same meaning as in the Insurance (Vehicle) Act.

51 Section 3 is amended

(a) in paragraph (a) by striking out ", 6",

(b) by striking out "and" at the end of paragraph (a) and by adding ", and" at the end of paragraph (b), and

(c) by adding the following paragraph:

(c) it does not apply to vehicle insurance under the Insurance (Vehicle) Act.

52 Section 24 (3) is repealed.

53 Section 82 (3) (d) is repealed and the following substituted:

(d) vehicle insurance within the meaning of the Insurance (Vehicle) Act.

54 Section 119 (a) is amended by striking out "automobile" and substituting "vehicle".

55 Section 120 (2) is amended by striking out "an automobile" and substituting "a vehicle".

56 Part 6 is repealed.

57 Section 193 is repealed.

58 The Schedule is repealed.

 
Insurance Corporation Act

59 Section 1 of the Insurance Corporation Act, R.S.B.C. 1996, c. 228, is amended

(a) by adding the following definition:

"commission" means the British Columbia Utilities Commission continued under section 2 of the Utilities Commission Act; ,

(b) by repealing the definition of "optional automobile insurance" and substituting the following:

"optional vehicle insurance" means vehicle insurance other than universal compulsory vehicle insurance under the Insurance (Vehicle) Act; ,

(c) by striking out "automobile" in the definition of "universal compulsory automobile insurance" and substituting "vehicle", and

(d) by repealing the definition of "vehicle".

60 Section 7 (b) is amended

(a) by striking out "compulsory automobile" and substituting "compulsory vehicle", and

(b) by striking out "and optional automobile insurance".

61 The following sections are added:

Corporation to maintain accounts

8.2 The corporation must keep and maintain separate and distinct accounts in which it must record

(a) all money paid to the corporation for premiums and all other money, including investment income, paid to the corporation for the purposes of the Insurance (Vehicle) Act, and

(b) all payments by the corporation of benefits, insurance money, damages, compensation, costs and capital expenditures and operating expenses for the purposes of the Insurance (Vehicle) Act.

Directors to account for income and expenditures

8.3 If the corporation receives income, including investment income, or if the corporation makes an expenditure partly for the purpose of the Insurance (Vehicle) Act and partly for another business or purpose of the corporation, the directors must apportion and account for that income and expenditure accordingly.

Reserve

8.4 Subject to the regulations and any orders of the commission under section 46, the corporation must maintain for the purposes of the Insurance (Vehicle) Act reserves in amounts the corporation considers advisable in the interest of owners of vehicles and drivers of vehicles, and in the interest of good management of the business of vehicle insurance, so that the corporation has at all times sufficient funds to meet the payments under the Insurance (Vehicle) Act as they become payable.

62 Section 9 (2) is amended by adding the following paragraphs:

(i) carry out either alone or with a board, commission, corporation, ministry or agency of government, or a person, agency or association, a research, education, training, competition or similar program relating to highway safety;

(j) promote or carry out programs of research into causes of accidents and the equitable distribution of losses resulting from highway traffic accidents;

(k) establish and maintain repair shops to investigate and apply techniques used in the repair of vehicles and to analyze the cost of repairs;

(l) negotiate with persons engaged in vehicle repairs to establish fair and reasonable prices for vehicle repairs for which payments may be made under the Insurance (Vehicle) Act.

63 The following sections are added:

Costs incurred for damaged vehicle

9.1 (1) If a vehicle has been damaged as a result of an accident and has been delivered into the custody of the corporation with the consent of the owner or person in charge of the vehicle at the time of the accident or under the direction of a peace officer under the Motor Vehicle Act,

(a) the corporation has a lien on the vehicle for the amount of the costs and charges for removal, towing, care or storage of the vehicle unless the corporation is responsible for payment of the amount of those costs and charges, and

(b) that amount is a debt owing by the registered owner to the corporation.

(2) The corporation may give a written notice to the registered owner of the vehicle requiring the registered owner to

(a) pay the costs and charges referred to in subsection (1), and

(b) remove the vehicle from the place where it is stored within 7 days from the date of receipt of the notice.

(3) A notice under subsection (2) may be given by serving it personally on the registered owner or by mailing it to the registered owner's address as shown in the records of the corporation and, if mailed, the notice is deemed to have been received on the eighth day after the date of mailing.

(4) If the registered owner does not pay the costs and charges owing to the corporation and remove the vehicle within 14 days after receiving a notice given under subsection (2), the corporation may, without further notice, offer the vehicle for sale by public auction or tender.

(5) On the sale of a vehicle under this section, the corporation may deduct all costs and charges owing to it, including the costs of the sale, and must for 2 years after that hold any balance in trust for the owner of the vehicle and other persons having a registered interest in the vehicle and if the balance is unclaimed within the 2 years it becomes the property of the corporation.

(6) If a vehicle offered by the corporation for sale by public auction or by tender is not sold, the corporation is deemed to be the purchaser of it for the amount of the costs and charges owing and the corporation may dispose of it as the corporation considers appropriate.

(7) When the corporation sells a vehicle or is deemed to be the purchaser of it by this section, the indebtedness of the owner to the corporation for the costs and charges referred to in subsection (5) in respect of the vehicle is extinguished.

Appointment of agents

9.2 (1) The corporation may, in writing, appoint agents it considers necessary for the purposes of either or both of universal compulsory vehicle insurance and optional vehicle insurance.

(2) The corporation must not appoint an agent unless he or she holds or has applied for a licence under the Financial Institutions Act as an insurance agent for the place specified in the appointment.

(3) Despite subsection (2), for the purpose of universal compulsory vehicle insurance, the corporation may appoint as an agent

(a) a government agent, or

(b) a person authorized in writing by the minister.

(4) The provisions of the Financial Institutions Act regarding insurance agents do not apply to the persons appointed under subsection (3) of this section.

(5) An agent must not have his or her appointment in respect of universal compulsory vehicle insurance or optional vehicle insurance terminated without just cause.

(6) Subject to any orders of the commission under this Act or the Utilities Commission Act as applied by this Act or a regulation under section 47 or 51, the corporation, after consultation with an agent, may establish annually the commission and other remuneration to be paid to the agent.

(7) An appointment of an agent made under the Insurance (Motor Vehicle) Act before September 27, 1977, that has not been suspended, cancelled or revoked, and a subsisting agreement made with respect to it, continues in force to the extent consistent with this section, until terminated by the corporation or the agent.

Advisory committee

9.3 (1) No earlier than January 1, 2006 and no later than October 1, 2006, the minister must establish an advisory committee to determine whether section 9.2 (5) is necessary for the efficient functioning of the vehicle insurance market in British Columbia.

(2) The members of the advisory committee appointed by the minister must consist of

(a) 2 persons from a list provided by the corporation, and

(b) 2 persons from a list provided by the agents.

(3) The members appointed under subsection (2) must appoint a fifth person to the advisory committee and designate that person to be the chair of the committee.

(4) The person appointed by the members under subsection (3) must not be an officer or employee of the corporation or an agent.

(5) The advisory committee must submit a report on its determination to the minister no later than December 31, 2006.

64 Section 23 (1) (c), (5) and (5) (a) is amended by striking out "automobile" wherever it appears and substituting "vehicle".

65 Sections 36 and 37 (1) (a), (2) and (3) are repealed.

66 Section 43 (1) is repealed.

67 Section 44 is amended

(a) in subsection (3) (b) by striking out "automobile" wherever it appears and substituting "vehicle",

(b) in subsection (4) by striking out "Division 2" and substituting "Division 3", and

(c) in subsection (6) by striking out "optional automobile insurance" and substituting "optional vehicle insurance".

68 Section 45 is amended by striking out "automobile" wherever it appears and substituting "vehicle".

69 Section 46 (1) is amended by striking out "section 6 of the Insurance (Motor Vehicle) Act," and substituting "section 8.5 of the Insurance (Vehicle) Act,".

70 Section 47 (1) (b) is amended by striking out "optional automobile insurance," and substituting "optional vehicle insurance,".

 
Motor Carrier Act

71 Section 1 of the Motor Carrier Act, R.S.B.C. 1996, c. 315, is amended by repealing the definition of "motor vehicle liability policy" and substituting the following:

"motor vehicle liability policy" means a certificate issued under Part 1 of the Insurance (Vehicle) Act and the regulations under that Part; .

 
Motor Vehicle Act

72 Section 1 of the Motor Vehicle Act, R.S.B.C. 1996, c. 318, is amended

(a) by repealing the definition of "automobile insurance",

(b) in the definition of "certificate of insurance" by striking out "of automobile insurance",

(c) by repealing the definition of "insurance premium" and substituting the following:

"insurance premium" means the premium established under the Insurance (Vehicle) Act for a vehicle liability policy and includes the basic premium and any additional premium, as defined in that Act; ,

(d) in the definition of "motor vehicle liability insurance card" by striking out "an insurance certificate" and substituting "a certificate of insurance",

(e) by repealing the definition of "motor vehicle liability policy" and substituting the following:

"motor vehicle liability policy" means a certificate issued under Part 1 of the Insurance (Vehicle) Act and the regulations under that Part; , and

(f) by adding the following definition:

"vehicle insurance" means vehicle insurance as defined in the Insurance (Vehicle) Act.

73 Section 3 is amended

(a) by repealing subsection (1) (c) and substituting the following:

(c) obtain for it an owner's certificate under the Insurance (Vehicle) Act. ,

(b) in subsection (3) (b) by striking out everything after "motor vehicle liability policy",

(c) in subsection (4) by striking out "the insurance premium prescribed" and substituting "the insurance premium established",

(d) in subsection (5) by striking out "an insurance certificate" and substituting "a certificate of insurance" and by striking out "despite section 16 of that Act;" and substituting "despite section 9.2 of the Insurance Corporation Act,",

(e) in subsection (5) (b) by striking out "under section 16 (3) (b) of the Insurance (Motor Vehicle) Act" and substituting "under section 9.2 (3) (b) of the Insurance Corporation Act",

(f) in subsection (6) by striking out "under section 16 of the Insurance (Motor Vehicle) Act" and substituting "under section 9.2 of the Insurance Corporation Act",

(g) in subsection (7) by adding "established under the Insurance (Vehicle) Act" after "insurance premium", and

(h) in subsection (7) (c) by striking out "a certificate of insurance" and substituting "an owner's certificate".

74 Section 25 (7) is amended by striking out "insurance premium" and substituting "insurance premium established under the Insurance (Vehicle) Act" and by striking out "certificate of insurance" and substituting "driver's certificate".

75 Section 26 (2) (a) (ii) is amended by striking out "automobile insurance, as defined in the Insurance Act, or".

76 Section 90 is amended

(a) in subsection (1) (a) (ii) by striking out "automobile insurance, as defined in the Insurance Act, or",

(b) in subsection (2) (a) by striking out "automobile insurance, as defined in the Insurance Act, or",

(c) in subsection (2) (c) by striking out "or automobile insurance",

(d) in subsection (6) by striking out "If the automobile insurance, as defined in the Insurance Act, or a motor vehicle liability policy" and substituting "If a motor vehicle liability policy", and

(e) in subsection (6) (a) by striking out "automobile insurance or".

77 Section 106 is amended

(a) in subsection (1) by striking out "an insurance certificate issued under the Insurance (Motor Vehicle) Act." and substituting "a certificate under the Insurance (Vehicle) Act.",

(b) in subsection (2) (b) by striking out "automobile insurance" and substituting "vehicle insurance as defined in the Insurance (Vehicle) Act",

(c) in subsection (3) by striking out "subsection (2)," and substituting "subsections (2) and (2.1),",

(d) in subsection (4) by striking out "motor vehicle liability policy" and substituting "contract of vehicle insurance that provides third party liability insurance coverage",

(e) in subsection (5) by striking out "motor vehicle liability policy" and substituting "contract of vehicle insurance", and

(f) in subsection (8) by striking out "automobile insurance" and substituting "vehicle insurance".

78 Section 107 (1) is amended by striking out "automobile" and substituting "vehicle".

79 Section 111 (2) is amended by striking out "certificate of insurance" and substituting "owner's certificate".

 
Senior Citizen Automobile Insurance Grant Act

80 Section 1 (1) of the Senior Citizen Automobile Insurance Grant Act, R.S.B.C. 1996, c. 422, is amended by striking out "universal compulsory automobile insurance under the Insurance (Motor Vehicle) Act for the pleasure use of automobiles" and substituting "universal compulsory vehicle insurance under the Insurance (Vehicle) Act for the pleasure use of vehicles".

Transitional -- application

81 (1) The Insurance (Motor Vehicle) Act and the regulations under that Act as they read before the coming into force of this Act apply to

(a) insurance under that Act that took effect before the coming into force of this Act,

(b) claims under that insurance, and

(c) insureds and the corporation in relation to that insurance.

(2) The Insurance Act and the regulations under that Act as they read before the coming into force of this Act apply to

(a) insurance under Part 6 of that Act that took effect before the coming into force of this Act,

(b) claims under that insurance, and

(c) insureds and insurers in relation to that insurance.

Transitional -- section 146 of the Insurance Act and exceptions from liability

82 Despite section 56 of this Act, section 146 (1) (b) and (2) of the Insurance Act, as that section read before the coming into force of section 56 of this Act continues to apply to a bodily injury or death that occurred before April 17, 1985.

Transitional -- business authorizations under the Financial Institutions Act

83 Without limiting section 84, the Lieutenant Governor in Council may make regulations that deem business authorizations issued under the Financial Institutions Act to carry on automobile insurance business to be business authorizations to carry on vehicle insurance business.

Transitional -- regulations

84 (1) The Lieutenant Governor in Council may make regulations to more effectively bring this Act into operation and to provide for cases and circumstances that may arise in the implementation of this Act for which no provision or inadequate provision has been made.

(2) A regulation made under this section may be made retroactive to a date not earlier than the date this Act or part of this Act comes into force, and if made retroactive is deemed to come into force on the date specified in the regulation.

(3) This section is repealed on December 31, 2006, and on its repeal any regulations made under it are also repealed.

Commencement

85 This Act comes into force by regulation of the Lieutenant Governor in Council.

 
Schedule

(section 43)

AMENDMENTS CONSEQUENTIAL TO THE INSURANCE
(MOTOR VEHICLE) ACT TITLE CHANGE