What is considered a non-standard vehicle?
The full definition of a non-standard vehicle is found in the Insurance (Vehicle) Act, Part 10, but the following is a simplified definition:
- 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 B.C.
Some examples of non-standard vehicles include Industrial machines, logging machinery, golf carts, farm tractors and all-terrain vehicles.
What is considered a highway?
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.
What is happening with non-standard vehicles under Enhanced Care?
Because the lawsuit bans for body injury and vehicle damage do not apply to most crashes involving non-standard vehicles off highway, customers who are not responsible for the crash have the option to sue for compensation for injury and vehicle damage in these situations. However, under Enhanced Care, non-standard vehicles that operate off-highway are no longer eligible for Basic Third Party Liability coverage while operating off-highway. Any Owner's Certificate (APV250) issued effective May 1, 2021 or later will not provide Basic Third Party Liability coverage for non-standard vehicles while they are operating off-highway.
There is a transition period in which an Owner's Certificate issued to a non-standard vehicle operated in specified rate classes prior to May 1, 2021 will continue provide Basic Third Party Liability for off-highway losses until the policy expires or is cancelled.
What is 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.
This is a new coverage that was introduced with Enhanced Care and can be added to eligible policies effective May 1, 2021 and beyond.
What limits are available for Off-Highway Third Party Liability optional coverage?
Optional Off-Highway Third Party Liability is available with limits of $200k, $1M, $2M, $3M and $5M.
If I want to have Third Party Liability coverage on my non-standard vehicle for off-highway risks, what do I need to do?
Customers with existing Owner's Certificates, effective before May 1, 2021, insuring non-standard vehicles in rate classes 030, 100, and 170 will continue to have Basic and Extended Third Party Liability that covers them on and off highway until their next renewal. When it comes time to renew your policy, you can choose to purchase ICBC's optional Off-Highway Third Party Liability coverage if you would like this risk covered. It is important for you and your broker to discuss the options to determine the coverage that is right for you. Non-standard vehicles that require Third Party Liability coverage while operating off highway have the option to purchase optional coverage either through ICBC or the private market. Eligible customers can purchase ICBC's Off-Highway Third Party Liability coverage at policy renewal or when taking out a new policy effective May 1, 2021 or later.
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 if you add a non-standard vehicle to your fleet, you will need to consider if you want to purchase optional Off-Highway Third Party Liability coverage for that vehicle. ICBC's Basic Third Party Liability and Extended Third Party Liability will not cover non-standard vehicles operating off highway, so customers will need to have this conversation with their broker when they are purchasing a new plate on their fleet.
Some of the vehicles that my company operates do not go on-highway, does this change affect them?
A simple way to determine if this change will affect any of your vehicles is to ask the following three questions:
- Does the vehicle fit the definition of non-standard vehicle?
- Is the vehicle issued a B.C. plate and insurance today?
- Is the vehicle rated for operation in rate class 030, 100 or 170?
If the answer is yes to all three of these questions, the vehicle may be affected by changes to Basic Third Party Liability for non-standard vehicles off-highway, and may be eligible to purchase Off-Highway Third Party Liability on the APV250.
If your vehicle fits the definition of a non-standard vehicle, but you answered No to one or both of questions 2 and 3, this change will likely not impact you at this time. Non-standard vehicles that are not licensed and insured in rate classes 030, 100 and 170 continue to have other sources of optional Third Party Liability coverage when they are operated off highway.
Note: For some industrial machines you may answer yes to all three questions, but if they are part of an Industrial Fleet and insured on an APV261, the optional Third Party Liability on the APV261 will continue to cover those non-standard vehicles when they are operated off highway.
Other sources of ICBC optional Third Party Liability coverage for non-standard vehicles operated off highway:
- Farm/Industrial Vehicle Floater Licence and Policy (APV261) – issued to farm and industrial vehicles that are operated on highway with a floater plate attached (conditional factor FVL for industrial machines in rate class 170).
Note: If your “R" or “X" plated non-standard vehicle is currently insured under an APV261, the Third Party Liability included on the APV261 will respond to Third Party Liability losses occurring off highway, with or without the floater plate attached.
- Off-Highway Pleasure Use Policy (APV119) (applies to non-standard vehicles rated in rate class 035 and 036 as well as unlicensed vehicles operated exclusively off highway for pleasure use).
Are there any non-standard vehicles that will not have any coverage options with ICBC under Enhanced Care?
There continues to be some non-standard vehicles that either not required or not eligible for ICBC licensing and insurance. These categories of vehicles have not changed under Enhanced Care.
How does Enhanced Care affect non-standard vehicles that 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 their plates.
Are there any exceptions where Basic liability will still cover non-standard vehicles while operating off-highway?
Yes the Garage Vehicle Certificates (APV4) will still cover liability for non-standard vehicles while off-highway. This is the only exception.