Category: Foreign Insurers

Court Of Appeal Allows Addition Of Foreign Insurance Company As Defendant Beyond Limitation Period

In Moldovan v. Republican Western Insurance Company, the Plaintiff was injured as a passenger in a vehicle insured by an insurance company outside of British Columbia. He sued ICBC for “no faultbenefits, but when he realized he should have sued the foreign insurance company, it was beyond the two year limitation period contained in Section 103 of the Insurance (Vehicle) Act Regulations. The British Columbia Court of Appeal confirmed that Power of Attorney and Undertaking signatories can use this limitation period to their benefit, however in the facts of this case the Court permitted the addition of the foreign insurance company as a Defendant, even beyond the two year mark.


[17]             As will be seen below, I am of the opinion that while s. 103 would normally be available to RWIC to assert in defence of the plaintiff’s claim, s. 4(1)(d) of the Limitation Act nevertheless does permit the court to join RWIC as an additional defendant. I also conclude that RWIC should be so joined in the circumstances of this case…


[36]           In the circumstances of this case, it seems to me that the balance of prejudice is clearly in the plaintiff’s favour, and that it is just and convenient that RWIC was added as a defendant notwithstanding the time limitation in s. 103 of the Regulation.  I would therefore dismiss the appeal and confirm the order of the chambers judge below, although for different reasons than those she expressed.

Court Rules Both ICBC and MPIC Have To Provide Benefits Insurance To Injured Pedestrian

There exist certain situations where a resident of British Columbia will be injured in a motor vehicle accident in British Columbia, where the at-fault motorist does not live in British Columbia, and is insured elsewhere. When this situation arises, issues can arise as to which insurer is responsible for accident benefits, and as to the extent of third party liability coverage.


Power of Attorney and Undertaking (PAU) is a document filed by non-British Columbia insurance companies that has the effect of providing minimum insurance requirements in the jurisdiction in which the accident occurs. For example, if a California insured vehicle with third party liability coverage of only $25,000.00 strikes and injures someone in British Columbia, where the minimum third party coverage limits are $200,000.00, then the foreign insurance company is required to provide $200,000.00 in third party liability coverage, should the circumstances of the case require it.


In Schuk v. York Fire & Casualty Insurance Companythe Plaintiff, a resident of British Columbia, was injured as a pedestrian when struck by a vehicle that was insured by the Manitoba Public Insurance Corporation (MPIC). There was a dispute between ICBC and MPIC as to who had to provide accident benefits coverage. The Court eventually ruled that both ICBC and MPIC had to provide coverage, yet that MPIC would be the primary insurer.


Another Court application was brought by the Plaintiff, who sought entitlement to the more generous MPIC accident benefits. MPIC disagreed, claiming that the extent of their responsibility was the limits of the British Columbia coverage for accident benefits. The Court agreed with counsel for MPIC, ruling that a resident of British Columbia that is injured in British Columbia by an MPIC insured vehicle is not entitled to claim the more generous MPIC accident