Why are claims denied by ICBC?

By law, ICBC has the right to deny a claim in certain situations. These include:

A customer lied about or misrepresented a claim - or committed fraud.
The true principal operator [click for definition] was not properly named when the policy was first purchased.
A customer's vehicle was insured in the wrong rate class [click for definition] or the wrong territory.
The rate class partly determines how much you pay in insurance premiums. For example, rates are lower if you only drive for pleasure and higher if you drive to and from work every day.

Insurance premiums vary by territory throughout the province, depending on risk factors.

You are responsible for declaring the proper rate class and territory for your vehicle when you buy ICBC insurance. If you do not, and you are in a crash, your claim could be denied or you may be required to pay a penalty.
An accident was the result of an attempt to avoid police arrest.
A person was driving a vehicle without a valid driver's licence or while their licence was suspended.
Death, injury, loss or damage was deliberately caused by the use of the motor vehicle.
At the time of an accident the vehicle was being used for illegal trade or transportation, or in a speed test or race.
A person driving a vehicle in a crash is convicted of a serious offence related to the crash or the use of the vehicle.

If you still feel that your claim was denied unfairly, you can appeal many ICBC decisions.

ICBC.com