Substitute vehicle expense reimbursement policy

ICBC may consider reimbursing the cost of fuel, maintenance, or insurance on a customer's Temporary Substitute Motor Vehicle (TSMV), when additional costs exist that a customer would not have paid using their vehicle, or the substitute vehicle is a commercial heavy equipment vehicle.

Applicability

When the substitute vehicle is for a

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passenger vehicle

For passenger or commercial vehicles with a gross vehicle weight (GVW) of 5,000 kilograms (kg) or less.

When a customer is unable to obtain a TSMV as the same type of vehicle as their vehicle damaged in a motor vehicle crash, the customer may experience higher fuel and maintenance costs. When this happens, 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
claim owner or exposure owner 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.

Note: Mileage is not covered on a passenger vehicle, as mileage is only a means to calculating the fuel and maintenance of a passenger motor vehicle. This does not apply if the vehicle is a commercial vehicle.

Example

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.

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.

commercial vehicle

For commercial vehicles with a GVW of 5,001 kilograms (kg) or more.

Customer's with a heavy equipment vehicle do not have TSMV coverage, but other coverage purchased may be available, such as loss of use coverage. For these vehicles, a daily rental limit may be available for as long as there is enough money to cover the expense.

When considering the reimbursement of expenses, a claim owner or exposure owner 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.

Important: When a customer is responsible for the crash, the availability of additional insurance costs requires consideration, and must not be authorized without manager consultation.

Example

Scenario	Response
A customer who is responsible for the crash or has an Own Damage claim, requires a substitute vehicle with a GVW of 5,001 kg or more, and their Own Damage coverage will not transfer to the rental vehicle.	ICBC will consider reimbursing the customer for the cost to insure a rental vehicle, when the customer has Loss of Use coverage, which is their only access to a substitute vehicle. Then the insurance cost would need to fit within the daily limit to the maximum of their coverage.
A customer who is not responsible for the motor vehicle crash, requires a substitute vehicle with a GVW of 5,001 kg or more, and their Own Damage coverage will not transfer to the rental vehicle.	ICBC will consider reimbursing the customer for the cost of insuring a rental vehicle in this situation. Note: ICBC wants to avoid downtime losses and to direct customers to attempt to rent a replacement vehicle.

Exceptions

For a passenger vehicle, a claim owner or exposure owner must not authorize the reimbursement of the cost of fuel, maintenance, insurance, or mileage when it is for a TSMV that is

a rental vehicle the customer has rented, and it is the equivalent of the customer's damaged vehicle, or
another motor vehicle a customer owns, that they have insured to use as their substitute 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.

Options

A claim owner or exposure owner 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 examples of situations that may support the suggestion of another option.

Examples

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. Note: The APV281 cannot be purchased for commercial vehicles with a GVW of 5,0001 kg or more.
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