Last updated 2019-10-30
Policy on loss of use extension for vehicle settlements
A vehicle settlement representative must obtain approval if they decide to extend the customer’s Loss of Use coverage beyond the standard three days or beyond policy limits for a total loss claim.
Vehicle settlement summary
For customers with Loss of Use coverage and a vehicle settlement, ICBC typically authorizes Loss of Use benefit for up to three days after the actual cash value (ACV) of the vehicle has been presented, subject to policy limits. In these cases, the vehicle settlement representative must
- Immediately advise the customer to start a search for a replacement vehicle, even if it is not yet determined that the vehicle is not repairable
- Inform the customer when it has been determined that the vehicle is not repairable, and
- advise the customer that Loss of Use authorization after ACV is presented is limited to three days, and the customer should obtain a replacement vehicle as soon as possible.
Extensions to Loss of Use benefit
The vehicle settlement representative can use some discretion when deciding to extend or discontinue the Loss of Use benefit within both the three days and policy limits.
For extensions beyond either, and for disputes, the VSR must obtain approval from the claim or exposure owner or the applicable manager.
| If the … | Then … |
|---|---|
| vehicle settlement representative determines an extension beyond three days is reasonable | they must obtain approval from the handling adjuster OR their manager. |
| vehicle settlement representative determines an extension beyond policy limits is reasonable | they must obtain approval from the handling adjuster AND their manager. This occurs in extreme circumstances only. |
| customer disputes the settlement amount | the vehicle settlement representative advises the customer that any additional rental charges beyond the three-day period are the customer’s responsibility. |