Last updated 2021-05-01

Create interim payment on total loss settlement

Steps to create an interim payment on total loss settlement.

When this applies

In situations where the settlement amount cannot be agreed upon due to differences of opinion on the vehicle value, the vehicle settlement representative (VSR) or estimator may consider creating an interim payment.

The settlement amount will be the actual cash value (ACV) of the vehicle as determined by ICBC, less deductible if applicable.

Note: Legal actions against third parties for disputes regarding the value of vehicles cannot be initiated for claims with a date of loss of May 1, 2021 and later.

Procedure

  1. Ensure the customer has signed one of the following forms prior to advancing the payment:
    • Vehicle Ownership Transfer Agreement (CL96)
    • Owner Retention Agreement (CL96C), or
    • Commercial Claims Salvage Purchase Agreement (CL96D)
  2. Explain the following to the customer:
    • we are advancing what we feel is fair market value for the vehicle, and
    • accepting the advance payment does not prejudice any of the customer's rights under the arbitration provision of the Insurance (Vehicle) Regulation, Section 177.
  3. Provide the customer with a copy of the applicable procedure and explain how the customer should proceed.

    Advise not-liable customers that

    • they have a right of action, and
    • can institute legal proceedings should they decide to do so.
Parent topic: Total loss settlement dispute policy