What is happening with non-standard vehicles under Enhanced Care?
Under Enhanced Care, non-standard vehicles that operate off-highway are no longer be eligible for third party liability coverage while operating off-highway. Any policy effective May 1, 2021 or later will exclude non-standard vehicles that operate off-highway and customers who are not responsible for the crash will have the option to sue for injury and vehicle damages in these situations.
However, there will be a transition period in which a basic third party liability policy issued prior to May 1, 2021 will continue to cover these losses until the policy expires or is cancelled.
What is the optional Off-Highway Third Party Liability coverage?
For our customers with vehicles such as licensed golf carts, utility vehicles, farm tractors and industrial vehicles (rate classes 030, 100 and 170), who operate off-highway (e.g. on logging roads or private land), optional Off-highway Third Party Liability will protect you in the event of an off-highway crash you are responsible for.
What limits will be available for Off-Highway Third Party Liability optional product?
Yes, optional Off-Highway Third Party Liability is available with a $200k, $1M, $2M, $3M and $5M limit.
If I want to have coverage on my non-standard vehicle for off-highway risks after May 1, 2021, what do I need to do?
Customers will retain their current third party liability limit after May 1, 2021 until their next renewal. When it comes time to renew your policy, you can choose to purchase the optional off-highway coverage if you would like this risk covered. It will be important for you and your broker to discuss the options to determine the coverage that is right for you. Non-Standard vehicles that require off-highway third party liability coverage will have the option to purchase an optional product either through ICBC or the private market. ICBC will offer an optional product that will provide indemnity against losses caused to others in limits of $200K, $1M, $2M, $3M and $5M. Eligible customers can purchase this coverage at policy renewal.
What if I want to add a non-standard vehicle to my fleet after May 1, 2021?
If your fleet vehicles get their coverage through an APV250, then any new plate for a non-standard vehicle added to your fleet, you will need to consider if you want to purchase the optional off-highway third party liability product as ICBC's Basic third party liability and extended third party liability will not cover this risk. Customers will need to have this conversation with their broker when they are purchasing a new plate on their fleet.
What is considered a non-standard vehicle?
The definition of a non-standard vehicle, per Legislation Bill 11
Non-standard vehicle: A motor vehicle that, as manufactured, does not conform to Canadian standards for motor vehicles for on-highway use, but could be licensed for limited on-highway use in BC.
Some examples of non-standard vehicles include mobile cranes, farm tractors, logging machinery, golf carts, farm tractors and off-road vehicles.
The definition of a highway per the Motor Vehicle Act
Highway includes (a) every highway within the meaning of the Transportation Act, (b) every road, street, lane or right of way designed or intended for or used by the general public for the passage of vehicles, and (c) every private place or passageway to which the public, for the purpose of the parking or servicing of vehicles, has access or is invited; but does not include an industrial road.
Some of the vehicles that my company operates do not go on-highway, does this mean that they are non-standard vehicles?
A simple way to determine if your vehicle is non-standard is to ask the following two questions:
If the answer is yes to both these questions, the vehicle will be affected by changes to Basic Third Party Liability for non-standard vehicles off-highway. This vehicle may be eligible to purchase Off-Highway Third Party Liability on the APV250.
If no, then the vehicle is either considered standard or it is non-standard but does not carry ICBC insurance. If you want Off-Highway Third Party Liability coverage in the future, you should discuss your options with an Autoplan broker. They will first check that the vehicle can be licenced and insured with restricted plate and then they can add Off-Highway Third Party Liability coverage.
How does Enhanced Care affect non-standard vehicles that currently have Off-Road Vehicles (ORV) plates, Restricted “R” plates or Industrial “X” plates?
There is no change to the on-highway licensing and insurance requirements for non-standard vehicles eligible for the ORV, “R” or “X” plates. However, the impact of removing lawsuits applies to ORV’s, “R” and “X” plates as it applies to regular plated vehicles if the crash is on-highway.
When driving on-highway with a valid license and insurance, the lawsuit ban applies and these vehicles will still be able to access any applicable insurance on through their plates.
For licensed and insured non-standard vehicles operating off-highway the lawsuit ban will not apply and you can be sued. However, the basic Third Party Liability will no longer respond. If you would like Third Party Liability on these vehicles while off-highway you will have the option to purchase a non-standard off-highway third party liability optional product. This product will be available for purchase through your APV250.
Other sources of ICBC Off-Highway Third Party Liability Coverage for non-standard vehicles outside the APV250:
APV261 (Farm/Industrial Vehicle floater license and insurance)
If your “R” and “X” plated vehicle currently insured the APV261), the Third Party Liability included on the APV261 will respond to Off-Highway Third Party Liability loss.
APV119 (Off-Highway Pleasure Use Policy)
The Third Party Liability included on the APV119 for off road vehicles also includes Off-Highway Third Party Liability to protect you for this off-Highway/ non-standard vehicle risk.
Are non-standard plates be insured like other vehicles?
For non-standard vehicles operating off-highway (e.g. a licensed and insured excavator causes injuries off-highway) you will have the option to purchase optional Off-Highway Third Party Liability.
There is no change to the on-highway licensing and insurance requirements for non-standard vehicles like forklifts in the future. On-highway, when operating with a valid licence and insurance, the lawsuit ban applies equally to these vehicles as it does to standard vehicles.