No Fault Insurance For Auto Accidents In British Columbia

• Published date: 22 October 2021
• Subject Matter: Insurance, Litigation, Mediation & Arbitration, Insurance Laws and Products, Trials & Appeals & Compensation, Personal Injury
• Law Firm: Gowling WLG
• Author: Mr Rory McMullan

Recent legislative changes in British Columbia have introduced a no fault model for auto liability claims arising from motor vehicle accidents that occur in British Columbia on or after May 1, 2021. The changes have significant implications for out-of-province auto insurers.

Summary of no fault in British Columbia

Amendments to the British Columbia Insurance (Vehicle) Act [RSBC 1996] Ch 231 (the "I(V)A") remove the right of an individual to sue for personal injuries and vehicle damage caused by a motor vehicle accident in British Columbia on or after May 1, 2021 in all but very limited circumstances.

Coinciding with these changes are significantly increased statutory first party accident benefits for medical, rehabilitation and income replacement benefits as well as new benefits for non-earners, caregivers and permanent impairment compensation for those with a permanent impairment or a catastrophic injury.

Personal injury actions

A person cannot sue for personal injuries and associated losses caused by a vehicle in British Columbia on or after May 1, 2021 unless an exception applies¹.

Personal injury actions can still be pursued against:

1. Vehicle or parts manufacturers, sellers and suppliers;
2. Garage service operators;
3. Liquor licensees; and
4. Persons convicted of prescribed criminal offences arising from their use and operation of a vehicle².

Additionally, personal injury actions may still be pursued if all vehicles involved in the accident are non-standard motor vehicles that cannot be licensed in British Columbia.

Vehicle damage actions

A person cannot sue for vehicle damage and associated losses caused by a vehicle in British Columbia on or after May 1, 2021 unless an exception applies³.

Actions by owners or lessors against renters or lessees are exempt from the bar to vehicle damage actions.

Additionally, vehicle damage actions may still be pursued if all vehicles involved in the accident are non-standard motor vehicles that cannot be licensed in British Columbia.

The bar on vehicle damage actions precludes subrogated claims by an insurer for vehicle damage paid to an insured.

Other third party liability claims

There is no bar to third party claims for losses, other than personal injuries and vehicle damage arising out of a motor vehicle accident on or after May 1, 2021. Examples of claims not subject to the bar include:

1. Non-vehicle property damage caused by a motor vehicle accident (e.g. damage to fencing, buildings or other property);
2. Damage to...