BRITISH COLUMBIA
2201 APPROVED AND ORDERED EC. -2.19132 10h4.4.--cg Lieutenant-Governor
EXECUTIVE COUNCIL CHAMBERS, VICTORIA M. -7.92
On the recommendation of the undersigned, the Lieutenant-Governor, by and with the advice and consent of the Executive Council, orders that Regulation No. 1, pursuant to the Insurance (Motor Vehicle) Act, be amended as set out in the attached Schedule and that the amendments come into force on January 1, 1983.
Minister' Consumer and Corporate Affairs
(This part is /or administrative purposes and is not part of the Order.)
Alitiority under which Order is made: Insurance (Motor Vehicle) Act, ss. 33, 34 & 46 Act and section
1517 3 3) Other (specify) • w Claire Reilly lietatory authority cheekrd by ...... (Signattuy tad typed or Waled mole or Lust kovember 24, 1982 ,9143 /82/jip SCHEDULE e""", REGULATION 32
1. Section 1.02 is amended (a) by repealing paragraph (12) and substituting the following: (12) "artisan" means a tradesman who uses a motor vehicle for carrying to or from a work location tools, equipment or materials of the owner or user of the vehicle, but does not include a person who uses a motor vehicle for the comnercial delivery of anything; ,
(b) by repealing paragraph (26) and substituting the following: (26) "collision" means upset or collision with another object including, but not limited to, (i) the surface of the ground, the roadway being travelled on or an object on, in, under, over or adjacent to the roadway, including a road sign, guard rail, pier, bridge or culvert or any body of water or waterway under or adjacent to the pier, bridge, culvert or roadway, (ii) a pedestrian as defined in Part 3 of the Motor Vehicle Act, (iii) a vehicle attached to the motor vehicle, and (iv) cargo, including animals, carried in or on the motor vehicle or an attached vehicle, and includes loss or damage caused by collision with another object where the collision results from the presence on or adjacent to the roadway of a domestic or wild animal, either living or dead, but there is no impact with the animal; ,
(c) in paragraph (29) by striking out "animals;" and substituting "a domestic or wild animal, either living or dead;",
(d) in paragraph (39) by striking out "includes" and substituting "means",
(e) in paragraph (63) by striking out "sections 7.10 or 7.11" and substituting "section 7.10",
(f) in paragraph (75) (a) by striking out "provided that when driving or operating a motor vehicle, the owner shall be the holder of a valid and subsisting driver's licence and a valid and subsisting driver's certificate,",
(g) in paragraph (75) (b) by striking out "who is the holder of a valid and subsisting driver's licence and a valid and subsisting driver's certificate",
(h) by repealing paragraph (95), and
(i) by repealing paragraph (115) and substituting the following: (115) "rehabilitation" means the restoration, in the shortest practical time, of an injured person to the highest level of gainful employment or self sufficiency that, allowing for the permanent effects of his injuries, is, with medical and vocational assistance, reasonably achievable by him; . 2
2. Section 2.22 is amended (a) in subsection (a) by adding the following after paragraph (xviii): .""". (xix) propane or compressed natural gas fuel conversion equipment, (xx) decals, (xxi) pinstriping, and (xxii) mouldings. ,
(b) in subsection (b) by striking out "items (ix) to (xiii) inclusive, (xv) and (xvi)," and substituting "an item described in subsection (a) (ix) to (xiii), (xv), (xvi) or (xix) to (xxii)",
(c) in subsection (c) by striking out "subclause (vi)" and substituting "subsection (a) (vi)", and
(d) by adding the following after subsection (g): (h) Notwithstanding any other provision of this section, indemnity for damage or loss of equipment of a motor vehicle, the annual premium for which is determined by a vehicle rate group, shall include indemnity for each item of manufacturer's equipment that is attached to the motor vehicle when the loss or damage occurs. • (i) In subsection (h), "manufacturer's equipment" means equipment of a motor vehicle that (a) at the time the vehicle is manufactured is available from the manufacturer as standard or optional equipment for that vehicle, and (b) is attached to the vehicle by the manufacturer, the manufacturer's dealer or an owner of the vehicle.
3. Section 2.29 is amended by adding the following after subsection (c): (d) Where an extraprovincial undertaking obtains duplicate third party legal liability coverage, accident benefits coverage or other extension insurance coverage, except own damage coverage, by insuring a vehicle under a valid and subsisting owner's certificate and under a policy of automobile insurance issued by an insurer authorized for that purpose by the Insurance Act or by a similar law of another jurisdiction, the other insurance is primary insurance and the owner's certificate shall continue to afford insurance (i) in respect of third party legal liability coverage, to the extent only that the limits of liability of the owner's certificate are greater than the limits of liability afforded by the other policy of insurance, (ii) in respect of accident benefits coverage, to the extent only that the benefits payable under the owner's certificate are greater than the no fault benefits payable under the other policy of insurance, and (iii) in respect of own damage coverage, as provided in section 9.27, but the insurance afforded by the owner's certificate in respect of any other extension insurance coverage, except own damage, is void. (e) The corporation shall, on request of the insured, refund to the insured the premium paid for any insurance that is void under subsection • . (d). 3
4. Section 2.41 is repealed.
5. Section 4.04 is amended by repealing subsection (b) and substituting the following: (b) In subsections (b.l) and (b.2) "attached machinery, apparatus or equipment" does not include a camper, canopy or two-way radib. (b.l) An applicant for or holder of an owner's certificate for a vehicle not described by a vehicle rate group set out in Part III of Schedule (A) who applies for and obtains new or renewed own damage extension insurance for the vehicle and its attached machinery, apparatus or equipment shall, for the purpose of determining the annual premium payable for the extension insurance, declare the value of the vehicle and of its attached machinery, apparatus or equipment. (b.2) Where a declared value submitted under subsection (b.l) is less than 90% of the actual cash value of the vehicle together with its attached machinery, apparatus or equipment, the insured is a co-insurer with the corporation for any loss or damage to the vehicle and its attached machinery, apparatus or equipment. (b.3) Where the insured is a co-insurer under subsection (b.2), the amount of the co-insured portion of the loss or damage for which indemnity is afforded by the corporation shall be determined by the following formula:
dv ( x loss) - deductible = claim acv
where "dv" means the declared value of the vehicle, "acv" means the actual cash value of the vehicle, "loss" means (i) where the vehicle is repairable, the cost of repairing the loss or damage to the vehicle, or (ii) where the vehicle is not repairable, the actual cash value of the vehicle less the total proceeds of the disposal or sale of the salvage; "deductible" means the own damage deductible amount applicable to the type of coverage afforded for the loss or damage; "claim" means the amount payable by the corporation to the insured for the corporation's portion of the total value of the loss or damage to the vehicle.
6. Section 4.06 (a) is amended by striking out "for excess own damage extension insurance coverage." and substituting "for excess own damage extension insurance coverage under a Special Own Damage Insurance Policy."
7. Section 4.11 is amended (a) by adding the following after subsection (f): (f.1) For the purpose of subsection (f), 4
(i) the law of the place where the insured suffered the bodily injury for which the claim is made shall, whether or not death results from that injury, be applied (1) to determine whether the insured is legally entitled to recover damages, and (2) in any arbitration proceedings arising out of a difference between the insured and the corporation as to whether the insured is so entitled, and (ii) the law of the Province respecting the determination of the amount of damages payable in the Province for a claim for bodily injury or death, similar to the claim by the insured, shall be applied (1) to determine the amount of damages payable to the insured, and (2) in any arbitration proceedings arising out of a difference between the corporation and the insured respecting the amount of damages. (f.2) Subsection (f.1) applies in respect of accidents that occur on or after January 1, 1983. , and
(b) subsection (n) is amended in the definition of "insured" by adding after paragraph (iv) "and includes, for the purpose of payment of indemnity under this section, the personal representative of a person described in paragraphs (i) to (iv); .
8. The following section is added: 4.12 (a) An applicant for or holder of an owner's certificate for a vehicle in rate class 001, 002, 005, 007, 011, 012, 013 or 050 may, on payment of the applicable premium set out in Schedule (A), obtain extension insurance that provides as part of the Plan loss of use coverage in accordance with the terms and conditions set out in this section. (b)Subject to subsection (c), the corporation shall reimburse a person insured by the coverage referred to in subsection (a) for loss of use of the motor vehicle described in the owner's certificate that arises from loss or damage for which coverage under Part IX is provided by the owner's certificate. (c)Reimbursement under subsection (b) shall (i) subject to subsection (d), cover the expense incurred by the insured in renting a substitute motor vehicle, hiring taxis or using public transportation, (ii) not exceed the limit per day and total limit purchased by the insured and set out in the owner's certificate, and (iii) terminate on the earliest of the following: (1) the date on which repairs to the described motor vehicle arising from the loss or damage are substantially completed; (2) the date on which the corporation tenders settlement to the insured for the loss or damage to the described motor vehicle; (3) the date on which the expenses incurred by the insured equal the total limit of reimbursement set out in the owner's certificate. 4 5
(d) Where an insured rents a substitute motor vehicle, the corporation shall not reimburse the insured for (i) an amount greater than the amount that an established rental service would charge the insured for renting a similar motor vehicle for the same period, or (ii) the cost of fuel, maintenance or insurance for the substitute vehicle. (e) Reimbursement afforded by loss of use coverage is primary coverage and any reimbursement to which the insured may be entitled under section 9.07 is excess to the coverage afforded under this section. (f) Coverage afforded under this section is void where a valid and subsisting Loss Of Use Endorsement applies in respect of a vehicle insured under this section. (g) The determination as to whether an insured is entitled to reimbursement under this section and, if so entitled, the amount of it shall be made by agreement between the insured and the corporation, but where a difference arises between an insured and the corporation as to whether the insured is entitled to reimbursement and, if so entitled, the amount of it, that difference shall be submitted to arbitration in accordance with section 9.59 (b) to (k). (h) The corporation, on making payment under this section, is subrogated to all rights of the insured to recover against any person the amount of the payment and the corporation may bring action in the name of the insured to enforce those rights. (i) The terms and conditions set out in Part IX apply to this section, except that a provision applying a deductible amount to a claim under that Part does not apply to a claim under this section. ti
9. Section 5.03 is repealed.
10. Section 5.04 is repealed.
11. Section 5.05 is repealed.
12. Section 5.09 is amended (a) by repealing subsections (1) and (4), and
(b) by adding the following: (5) The corporation may, on written request by the fleet operator made not less than 3 months before the end of the designated expiry month, change the designated expiry month of the owner's certificates for the fleet unless (a) the designated expiry month was changed under this section during the 3 years preceeding the date of the request, or (b) subsection (2) applies to the fleet. (6) Where the period between the end of the old designated expiry month and the end of the new designated expiry month requested under subsection (5) is less than 3 months, the corporation may issue an owner's certificate for renewal of insurance for each vehicle forming part of the 6
fleet with an expiry date that changes the old designated expiry month to the new designated expiry month by means of 2 transitional renewal terms that together total not more than 14 months duration, each term being not less than 6 months nor more than 8 months duration, as the corporation may in its sole discretion decide. (7) Where an owner's certificate is renewed under subsection (6), each transitional term applicable to the fleet shall, for the purpose of determining the loss experience of the fleet, be deemed to be one year.
13. Section 5.11 (a) is repealed.
14. Section 5.15 is amended (a) in subsection (b) (ii) by adding "or comprehensive coverage" after "specified perils coverage", and
(b) in subsection (c) by adding the following after paragraph (vii): (viii) claims under loss of use coverage.
15. Section 5.16 is repealed and the following substituted: 5.16 (a) In this section (0 "3-year scan period" means the 12 month period from March 1, 1979 to February 29, 1980 plus the variable period of months for the fleet extending forward from March 1, 1980 plus 12 months extending forward from the end of the last month of the variable period of months; (ii) "2-year scan period" means the variable period of months for the fleet extending forward from March 1, 1980 plus 12 months extending forward fran the end of the last month of the variable period of months; (iii) "one-year scan period" means the period commencing on the date the fleet commenced to insure as a fleet in 1981 and ending in the following year on the last day of the month that precedes the month that the fleet commenced to insure as a fleet; (iv) "variable period of months" means the number of months set out below in Column 2 opposite the designated expiry month for the fleet set out in Column 1.