Substitute vehicle reimbursement of fuel, maintenance, and insurance costs policy

ICBC does not reimburse the cost of fuel, maintenance, or insurance on a customer's substitute motor vehicle.

Applicability

A claims representative must not authorize the reimbursement of the cost of fuel, maintenance, or insurance when it is for a substitute motor vehicle, which includes

a rental vehicle the customer has rented, or
another motor vehicle a customer owns, that they have insured to use as their substitute vehicle.

Note: Mileage is also not covered, as mileage is only a means to calculating the fuel and maintenance of a motor vehicle.

Rationale

Prior to a motor vehicle crash, a customer would have covered the cost of their vehicle's fuel, maintenance, and insurance, which does not change when the customer uses a substitute vehicle as a result of the motor vehicle crash. ICBC expects a customer to have the same requirements of a substitute vehicle as they would have for their own vehicle prior to the crash; therefore, the customer has not incurred any new costs for fuel, maintenance, or insurance as a result of using a substitute motor vehicle.

Exceptions

When a customer is not able to use the same type of vehicle as their motor vehicle involved in the crash, which results in higher fuel costs, a customer may be able to request a reimbursement for the variance. In these exceptions, the

customer
- must justify the use of a different type of vehicle, and
- may be asked to provide a detailed breakdown or formal statement of the cost differences, and
claims representative must
- consult with their manager, and obtain their approval
- advise the customer that it is an exception to have the request approved, and
- record the details in a note on the claim.

Examples of exceptions are

Scenario	Rationale	Response
A customer's motor vehicle on the date of loss (DOL) was a zero-emission vehicle. Unfortunately, the only substitute motor vehicle available to the customer is either a hybrid or gas only vehicle. The customer has requested reimbursement for the fuel costs. In this scenario, the responsible driver is the third party.	Prior to the DOL the customer paid electricity costs, and did not pay for gas.	ICBC will reimburse the customer for fuel costs for up to 2,000 kilometres (km) without deducting electricity costs. A review of fuel receipts and mileage as noted on the final rental contact should be completed. An estimate of electricity costs will be deducted from any fuel reimbursement over 2,000 km. Any reimbursement over $1,000 should be reviewed with your manager prior to approval.
A customer requires a substitute vehicle with a gross vehicle weight (GVW) over 5,000 kilograms, and their Own Damage coverage will not transfer to the rental vehicle.	When lower cost options are not available, ICBC wants to avoid downtime losses.	ICBC may reimburse the customer for the cost of insuring the rental vehicle in this situation.

Scenario

Rationale

Response

A customer's motor vehicle on the date of loss (DOL) was a zero-emission vehicle.

Unfortunately, the only substitute motor vehicle available to the customer is either a hybrid or gas only vehicle. The customer has requested reimbursement for the fuel costs.

In this scenario, the responsible driver is the third party.

Prior to the DOL the customer

paid electricity costs, and
did not pay for gas.

ICBC will reimburse the customer for fuel costs for up to 2,000 kilometres (km) without deducting electricity costs.

A review of fuel receipts and mileage as noted on the final rental contact should be completed.

An estimate of electricity costs will be deducted from any fuel reimbursement over 2,000 km.

Any reimbursement over $1,000 should be reviewed with your manager prior to approval.

A customer requires a substitute vehicle with a gross vehicle weight (GVW) over 5,000 kilograms, and their Own Damage coverage will not transfer to the rental vehicle.

When lower cost options are not available, ICBC wants to avoid downtime losses.

ICBC may reimburse the customer for the cost of insuring the rental vehicle in this situation.

Options

A claims representative may suggest options to help the customer reduce their out-of-pocket expenses, when the

reimbursement of fuel, maintenance, or insurance expenses is not permitted as part of the customer’s claim, or
customer does not carry the applicable Own Damage coverage.

The table provides some examples of situations that may support a claims representative suggesting another option.

Situation	Issue	Option
A customer requires a substitute vehicle, while their vehicle is being repaired due to being involved in a motor vehicle crash.	The customer does not have Own Damage coverage on their damaged vehicle to transfer to a substitute vehicle.	The customer can purchase a Rental Vehicle Policy (APV281) as it will provide Own Damage coverage for a courtesy car or other substitute vehicle.
A customer needs to drive to another city in their substitute vehicle to replace items damaged in the motor vehicle crash.	The customer wants to be reimbursed for the fuel and mileage costs as they are only replacing items damaged because of the crash.	Advise the customer that fuel and mileage costs are not reimbursable.
A customer needs to use the substitute vehicle for business purposes, and will likely exceed the rental company's mileage limit.	The customer advises that because they need the substitute vehicle for business, they want to be reimbursed for the costs incurred for exceeding the rental company's mileage limit.	The customer can upgrade to unlimited mileage instead of paying per kilometre (km), or select a different rental company that offers unlimited mileage.

Applicable policy or legislation

ICBC Autoplan Optional Policy, section 5.14 (d)(ii) Loss of use

Basic Vehicle Damage coverage Regulation, section 18 (7)(b) Loss of use