ICBC requires vehicle owners to declare who the principal driver of the vehicle will be during the purchase of an insurance policy. The driving record of the principal driver (75%) and the highest risk listed driver (25%) determine the cost of the policy. A deliberate misrepresentation of who will be driving could result in a claim being denied.
Declaring the Principal Driver
When plaintiff Yu Jung Lau purchased, licensed and insured a Subaru Impreza with ICBC he declared that he would be the vehicle’s principal driver.
The Collision
Two months later the Impreza, driven by his son Victa Lau, aged 22, was involved in a collision with another vehicle for which he was found to be solely at fault. The collision resulted in the total loss of the Subaru and claims against Mr. Lau by the occupants of the other vehicle.
ICBC's Position
ICBC was able to show at trial that Yu Jung Lau misrepresented himself to be the principal operator of the Subaru when in fact the principal operator was Victa Lau. Because of this misrepresentation, the insurance coverage was forfeited.
The Court's Decision
The Honourable Mr. Justice Verhoeven commented that judging by the number of similar cases that have come before the courts, it seems likely the plaintiffs’ lack of understanding of the consequences of a false declaration as to the vehicle’s intended principal operator is shared with many members of the public.
The result in this case should serve as a warning to everyone who is considering not being 100% honest with an insurer simply to save a few dollars on premiums. The saving is negligible in the face of having to pay for the results of a collision instead.
Learn More
- Read the Reasons for Judgment - Lau v Insurance Corporation of BC
- Determining Who Is The Principal Driver - BC Injury Law
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