Loss of Insurance Coverage

Published by DriveSmartBC -
Collisions
ICBC
Impaired Driving

BC Courts Coat of ArmsIn the early morning hours of April 25, 2015 Kendall Derkson was driving her vehicle on Highway 10 in Surrey. She struck a vehicle driven by Patrick Chan, destroying her vehicle in the process. ICBC refused to cover her loss as she was in breach of her conditions of insurance for being “incapable of proper control of the vehicle” at the time of the collision due to the influence of alcohol.

Not Enough Evidence

Ms. Derkson sued ICBC in an attempt to have the insurer cover her claim. She admitted consuming alcohol prior to the collision but tells the court that there was not enough evidence to allow ICBC to make the inference that she was not capable of controlling her vehicle.

Circumstances of the Collision

Madam Justice Horsman examined the circumstances involved:

  • Ms. Derksen's evening in the pub
  • Investigation by police who issued an IRP after Ms. Derkson blew a fail at the roadside
  • Revocation of the IRP by the Superintendent due to a time of driving error
  • Ms. Derkson alleging that Mr. Chan had stopped his vehicle on the highway in the dark and turned of his lights

Insurance Policy Conditions

The Insurance (Vehicle) Act Regulations allow ICBC to deny an insurance claim if:

“the insured is operating a vehicle while … under the influence of intoxicating liquor or a drug … to such an extent that he is incapable of proper control of the vehicle.”

This means ICBC doesn’t need a criminal conviction, just that they must show, on a balance of probabilities, that the driver’s impairment was severe enough that they lacked proper vehicle control, and the collision likely would not have occurred if the driver was sober.

The Court's Decision

Ultimately the justice found that Ms. Derksen was not a credible witness because of a direct interest in the trial outcome and her consumption of alcohol. She agreed with ICBC that Ms. Derksen was intoxicated at the time of the collision, dismissing the action and ordering costs in favour of the insurance company.

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