Last updated 2020-04-30

Policy on Loss of Use authorizations

The claims representative must review and accept the details for the Loss of Use request before submitting the authorization for it.

Policy

The claims representative must review and accept all the details for the Loss of Use request before submitting authorization for it. Loss of Use requests include initial authorizations and extensions for rental vehicles, taxis and public transportation.

It is important to review all the request details before submitting the authorization because the customer’s

alternate transportation needs may change,
existing authorization may be at or close to the coverage limits,
vehicle may already be repaired, or
settlement for the vehicle may be completed.

Situation	Details
Alternate transportation needs changed	Coverage includes expenses incurred for hiring taxis using public transportation, or renting a substitute motor vehicle of a make and model, specified by ICBC, for the purpose of providing alternate transportation that is a similar size to the customer’s vehicle.
Existing authorization may be at or close to the coverage limit	Reimbursement cannot exceed the limit per day and total limit purchased by the customer, and set out in the insurance certificate.
Vehicle may already be repaired or settlement for the vehicle is complete	Loss of Use terminates on the earlier of the date on which repairs to the vehicle are substantially completed, or ICBC settles or offers to settle the claim.

A Loss of Use request should only be accepted when the customer has no other method of transportation for their daily tasks or when it is deemed reasonable by the claims representative. Customers are required to mitigate their loss, including seeking alternate transportation only when it is needed and is cost effective. There is no entitlement to the total limit of coverage either.

Outcome

If this policy is not followed, the increased risks are

one or more customer service failures, such as the customer having to pay the difference in costs, or
claim payments that are over policy limits.

For example, a rental vehicle authorization is submitted without checking the customer’s policy limits. The customer rents a vehicle for $50/day but their daily limit is $25. The customer is responsible for the difference in cost.

Resolution

To resolve issues as a result of not following this policy, immediately contact the customer and the rental vehicle provider, if applicable, to communicate the appropriate authorization. Review the Loss of Use request details again to understand why this policy was not followed and required a resolution.