Chapter 12 British Columbia and Saskatchewan Plans Narrative Application Questions

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  1. a) Name the Automobile plans is operation in British Columbia.

    b) State the name of the Crown corporation providing basic coverage.

    c) List the basic mandatory coverages under this plan, including basic limits of coverage where applicable.

    d) List the optional coverages that are available.
    a) Automobile Plan

    - Autoplan

    b) Crown Corporations

          - Insurance Corporation of British Columbia(ICBC)

    c) Basic Mandatory Coverages in British Columbia

    •       - Third Party Liability 
    •       - Accident Benefits

          - Uninsured Motorist 

          - $200,000 basic limit Third Party Liability

    d) Optional Coverages in British Columbia

           - higher liability limits

           - higher Accident Benefits limits

           - physical damage coverage 

           - insurance to cover additional perils or exposures
  2. Outline the 2 Bodily Injury Benefit coverages under basic plate insurance in Saskatchewan.
    Automobile Plan

    - Bodily Injury benefits - No-fault Option

    - Includes the following coverages, which are subject to various limits and conditions:

           - income benefits, 

           - rehabilition coverage,

           - medical,

           - travel, 

           - and personal expenses,

           - living assistance,

           - permanent impairment payments, 

           - death benefits,

           - and funeral expenses.

    - Benefits limits are indexed.

    - Coverage limits under the no-fault option are greater than under the tort option, however, the insured's right to sue is severely limited.

    - Bodily Injury benefits - Tort Option

    - Includes the following coverages, which are subject to various limits and conditions: 

          - income benefits,

          - medical and rehabilitation coverage,

          - permanent impairment payments,

          - death benefits,

          - and funeral expenses.

    - Coverage limits are lower than under the no-fault option, because an injured person not responsible for the collision can sue those responsible for expenses above the package of benefits

           - and for pain and suffering.
  3. Helen was involved in an automobile accident with luther in Saskatchewan. Luther was determined to be 100% at fault for the accident. Helen's vehicle suffered damages estimated at $10,000 and Luther's vehicle also suffered $5,000 of damages. Helen, a dentist by trade, has also been unable to work for the last 3 months due to a neck and wrist injury suffered from the accident.

    Helen is insured under the basic license plate insurance for basic limits with no extension policy, and has selected the tort option for her personal injury benefits. She has a $700 deductible under Comprehensive coverage. Luther is also insured under basic plate insurance, and has purchased Auto Pak extension coverage with an additional $1 million in 3rd Third Liability and a $500 deductible under Comprehensive.

    a) Explain how Helen and Luther's insurance plans would respond. Show your calculations in your answer.

    b) Can Helen sue Luther? Explain.

    c) Could Helen sue Luther if the accident had occurred in and they were residents of British Columbia? Explain your answer.
    a) Saskatchewan Comprehensive Coverage

    - Both parties vehicle damages will be covered under their own Comprehensive coverage.

    - In Saskatchewan, Comprehensive insurance includes collision

          - and upset,

          - and damage to the vehicle by specified perils

          - such as vandalism and theft.

    - It is subject to a deductible, 

          - the amount of which depends on the vehicle class. 

    - The parties will receive the following for their vehicle damages:

          - Helen: $9,300($10,000 - $700 deductible)

          - Luther: under basic Auto fund = $4,500 ($5,000 - $700 deductible)

                     - under extension coverage = $200($700 - $500 difference in deductibles) 

                     - Total Luther will receive = $4,700($4,500 + $200)

    b) Right to Sue in Saskatchewan

    - In 2004, automobile Accident Benefits were amended in Saskatchewan to create a tort option in addition to the already-existing no-fault option.

    - Saskatchewan residents are now able to choose between the 2 options.

    - The tort option provides a lower level of defined benefits regardless of fault,

           - and in addition, provides access to the courts for actual financial losses above the level of defined benefits(economic losses)

           - and for non-economic losses, including pain and suffering

    - To sue, Helen must have purchase the tort option Accident Benefits, which she did.

    - Helen can sue Luther.

    c) Right to Sue in British Columbia

    - Lawsuits are permitted in BC for injuries arising from automobile accidents.

    - Before Helen can sue Luther, she must 1st exhaust all the coverage to which she is entitled under Accident Benefits

          - or waive her claim under Accident Benefits.

    - If she exhausts her coverage under Accidents Benefits, sues luther, 

           - and is awarded an amount, it will be paid by Autoplan on behalf of Luther (under Luther's Third Party Liability coverage).

    - But the Accident Benfits that Helen received will be deducted from the amount paid.

    - If Helen waives the Accident Benefits, sues, and loses her action, she will be paid nothing.
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Chapter 12 British Columbia and Saskatchewan Plans Narrative Application Questions
Chapter 12 British Columbia and Saskatchewan Plans Narrative Application Questions
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