When and why claims are denied

Your adjuster must investigate all claims to ensure fair settlements. Your claim can be denied for misrepresentations, committing certain offenses and convictions.

By law, ICBC has the right to deny a claim under certain situations that are a breach of your insurance policy or involve certain offenses and convictions. 

Your claim could be denied for the following scenarios:

• If you lie, misrepresented a claim or commit a fraud.
  
• The true principal operator was not properly named when the policy was first purchased, or on subsequent renewals of the policy.
• Your vehicle was insured in the wrong rate class, an insurance category based on how your vehicle is used, which partly determines how much you pay in insurance premiums.  For example, rates are lower if you only drive for pleasure and are higher if you drive to and from work every day.
• Insurance premiums vary by region 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. Get more information on how premiums are set.
• A crash was the result of an attempt to avoid police arrest.
• You were driving without a valid driver's licence or while your licence was suspended.
• You deliberately caused death, injury, loss or damage with the use of the motor vehicle.
• You were using the vehicle for illegal trade or transportation, or in a speed test or race at the time of a crash.
• You were convicted of a serious offence related to the crash or the use of the vehicle.

If you are convicted of an offence related to your crash, your claim may be denied.

How a conviction can affect an ICBC claim

Certain convictions under the Criminal Code of Canada or the Young Offenders Act anywhere in Canada will result in denial of a Third Party Liability claim and your own Collision, Comprehensive or Specified Perils claim.

Examples of such convictions include:

• Failing to remain at the scene of a crash.
• Impaired driving (where alcohol or drugs may have affected driving).
• Refusing to provide police with a sample of breath or blood on request.
• Dangerous driving and/or criminal negligence.
• Driving with a blood alcohol content more than .08 (where there are more than 80 milligrams of alcohol in 100 millilitres of blood).
• Certain convictions under the B.C. Motor Vehicle Act may have a similar effect. Also, convictions for the same kind of offences in the U.S. may result in denial of a claim.

IMPORTANT: Even if you are not convicted under the Criminal Code, your claim may be denied if you were driving under the influence of drugs or alcohol at the time of a crash.

No-Fault Accident Benefits breach situations

If you are injured in a crash as a B.C. resident or with a B.C. motorist, you are eligible for Accident Benefits regardless of fault, except for certain situations. Speak to your adjuster to find out more information.