Dealing with the devastating loss of a family member in a British Columbia auto accident is hard enough without having to manage complex insurance claims. But understanding how the Insurance Corporation of British Columbia (ICBC) handles fatal car accident claims is complicated, especially under recent changes to insurance regulations in the province. The Vancouver car accident lawyers at Warnett Hallen LLP can help you understand your options under ICBC’s Enhanced Care system.
Our law firm can explain your options for pursuing ICBC death benefits and provide compassionate guidance during this difficult time. Contact us for a free consultation today.
Understanding ICBC Death Benefits
The Insurance Corporation of British Columbia (ICBC) is a provincial crown corporation that provides basic auto insurance. ICBC’s basic insurance is mandatory for all British Columbians who own and drive motor vehicles. It provides financial benefits to injured survivors and the surviving family members of deceased victims in the event of a crash.
Here’s what you need to know:
What are ICBC Death Benefits?
ICBC death benefits and funeral expenses are available when an accident victim loses their life due to injuries from a traffic collision. Under ICBC’s Enhanced Care accident benefits, family members can recover fatality benefits to offset the financial hardships that often come with a sudden loss. However, they come with limitations that do not always work to the advantage of grieving families.
How Does the New Enhanced Care System Compare to the Old One?
The BC Government announced in February 2020 that it planned to implement a new, “care-based” auto insurance model. This type of model is also known as a no-fault insurance system. This change’s stated purpose was to reduce drivers’ auto insurance costs and provide increased access to enhanced benefits following crash-related injuries or deaths, regardless of who was at fault.
The former fault-based system allowed injury victims and surviving families to sue the person or party at fault for a collision. Victims needed to prove the at-fault party’s negligence, or failure to exercise reasonable care to prevent harming the victim. Claimants had to establish liability and navigate challenges from ICBC to get full and fair compensation, and experienced car accident lawyers often helped them resolve disputes and settle for more.
The new care-based system is no fault, meaning compensation for injury or death does not depend on who is responsible for a crash. All policyholders receive Enhanced Care Benefits for crash-related injuries or death from their own insurance policy. However, the system severely limits the rights of family members to pursue justice in court if they disagree with ICBC’s decision on death benefits. Survivors can only file personal injury claims if the at-fault driver is convicted of specific criminal offenses like drunk driving. There is also no option to recover compensation for pain and suffering, which is immense for grieving families.
What Happens to at-Fault Drivers Under the New System?
The new Enhanced Care system retains some deterrents for negligent and dangerous driving. Drivers who cause accidents will have increased premiums. Drivers convicted of certain criminal code offenses can still be sued for additional compensation. This introduces an added layer of accountability and consequence for reckless or criminal behavior on BC roads. These drivers might also be required to pay some of the injured party’s or surviving family’s benefits. Still, these allowances are of little comfort to families who do not meet the severely limited exceptions.
What is Covered Under ICBC Death Benefits?
Under ICBC’s Enhanced Care coverage, deceased accident victims’ immediate family members, including spouses, common-law partners, dependents, and sometimes grown children and parents, are entitled to one-time, lump-sum payments. The amount of these payments depends on the deceased’s age and income at the time of death, within certain minimum and maximum limits. Enhanced Care benefits also provide coverage for funeral expenses and grief counseling.
ICBC death benefits include:
Lump-Sum Payments to Spouses or Common-law Partners
Previously, spouses were entitled to $30,000 in death benefits, while dependents were entitled to $6,000 each. Under Enhanced Care, the minimum payment for a spouse or common-law partner is $72,995. The payment amount is based on the deceased’s gross yearly employment income and age. It can range from one to five times this gross income.
If the deceased had no job at the time of the accident and income replacement benefits wouldn’t have been available, a common-law partner or spouse can receive the minimum payment of $72,995. If a surviving spouse is disabled, different factors are used to determine the payment amount.
Lump-Sum Payments for Dependents
For dependents, the new benefits range from $34,670 to $65,381, based on the dependent’s age at the time of the deceased’s death. Dependents with disabilities are now entitled to additional payments of $31,935.
Lump-Sum Payments for Dependents of Single Parents
Enhanced Care benefits provide dependent children with two payments when a single parent is killed in a crash. This includes the regular payment for each dependent child and the payment that would have gone to a common-law partner or spouse, which is divided equally among surviving dependent children.
Lump-Sum Payments for Non-Dependent Children or Parents
Under the old system, non-dependent children and parents were not entitled to death benefits if there was no spouse or other dependent. But under Enhanced Care, if the deceased had no common-law partner, spouse, or dependents, then non-dependent children and non-dependent parents are each entitled to lump-sum payments of $16,256.
Weekly Benefit Payments for Caregivers
Caregiver weekly benefits are new benefits under the Enhanced Care coverage system. They are available if, when the accident happened, the deceased’s primary occupation was to provide unpaid care for a child under 16 or a disabled person without gainful employment. You must apply for this type of fatality benefit.
Funeral or Burial Expense Benefits
Previously, funeral expense benefits were capped at $7,500. Under Enhanced Care, this benefit has been increased to provide up to $9,949 for funeral or burial expenses, including taxes. These expenses can include transportation of the deceased, funeral or burial services, cremations, burial plot reservations, and grave markers. ICBC can either pay these expenses directly or reimburse the person who incurred them based on copies of invoices or receipts.
Grief Counseling Benefits
The new system also includes coverage for grief counseling. Each family member can claim up to $4,161 per deceased individual for counseling services. Family members can obtain counseling from various professionals, including counselors, psychiatrists, clergy members, and non-relative indigenous elders. Additionally, family members can have travel expenses pre-approved if they must travel more than 50 km (one way) from their home communities to attend grief counseling sessions.
Get Help from Our ICBC Lawyers
If you recently lost someone in a car crash in British Columbia, the compassionate team at Warnett Hallen LLP can help you understand your options under Enhanced Care regulations. Contact us 24/7 for a free consultation with a car accident lawyer in Vancouver.
