Funeral and death benefits under Part 7

Part 7 provides for payment of funeral expenses and death benefits where an insured is killed in an accident. Note that in the event of a death, the family may also be entitled to Canada Pension Plan death benefits.

 

Funeral expenses

Section 91 of the Insurance (Vehicle) Regulation states that were the death of an insured is caused by an accident ICBC shall promptly provide reimbursement for burial and funeral expenses up to a specified maximum. As of June 2012 s. 4 of Schedule 3 to the Insurance (Vehicle) Regulation specified the amount of $2,500 for funeral expenses.

 

Lump sum death benefits

Section 92(2) of the Insurance (Vehicle) Regulation provides for the payment of lump sum benefits for dependent family members when the death of an insured is caused by an accident. The benefits may be payable to:

  • children (where parents are killed); or
  • adults (where children are killed, or where a surviving adult was dependent on the deceased).

 

The amount of lump sum benefits payable are specified in s. 5 of Schedule 3 to the Insurance (Vehicle) Regulation and, as of June 2012, range from $500 to $5,000.

 

Supplemental death benefits

Additional lump sum benefits

Section 93(1) of the Insurance (Vehicle) Regulation provides for payment of supplemental lump sum benefits, for each survivor other than the first, where the deceased is survived by:

  • a spouse and one or more dependents; or
  • by two or more dependents.

 

The amount of the supplemental benefit paid to additional survivors is specified in s. 6 of Schedule 3 to the Regulation and, as of June 2012, is $1,000.

 

In other words, the first survivor gets the amount specified under s. 92(2) and the additional survivors get the amount specified under s. 93(1).

 

Weekly supplemental benefits

Section 93(2) of the Insurance (Vehicle) Regulation provides for payment of supplemental benefits where the deceased is survived by:

  • a spouse alone;
  • one or more dependents; or
  • a spouse and one or more dependents.

 

Benefits under s. 93(2) are payable for 104 weeks and as of June 2012 Sections 7 and 8 of Schedule 3 to the Regulation specified additional death benefits of:

  • $145/ week for the first survivor; and
  • $35 / week for each additional survivor.

 

According to s. 93(2) of the Insurance (Vehicle) Regulation these weekly benefits are reduced by the amounts of any payments under s. 80 (wage loss benefits) or 84 (homemaker benefits).

 

Definition of spouse

“Spouse” has been defined to mean “a person married to another person, or in a marriage-like relationship for at least two years immediately preceding the accident.” The term “marriage-like relationship” includes same sex partnerships.

 

Example of payment of death benefits

The following example is presented to illustrate the types of benefits that might be payable in a particular case.

 

Consider that the head of the household dies leaving a spouse and 2 young children.

 

The spouse would receive:

  • under s. 92(2), a lump sum of $5,000;and
  • under s. 93(2), $145/week for 104 weeks.

 

Each of the children would receive:

  • under s. 93(1) they are additional survivors and would each receive a lump sum of $1,000; and
  • under s. 93(2) they are additional survivors and would each receive $35/week for 104 weeks.

 

Additional rules for payment of death benefits

Section 94 of the Insurance (Vehicle) Regulation specifies additional rules for the payment of death benefits. For example, where an insured has more than one spouse the benefits are limited and rules for sharing are provided. Rules are also provided for how benefits are paid when a child is killed and the parents are living separate and apart at the time of the death.

 

Section 95 provides that benefits are only paid to persons who survive the deceased by at least 60 days i.e. benefits are not payable to the estates of family members who die in the same accident, or die shortly afterwards.

 

Any money payable to a child is normally paid to the Public Guardian and Trustee.

 

Under s. 102 of the Insurance (Vehicle) Regulation ICBC may pay out the weekly payment in a lump sum rather than paying them over 104 weeks.

 

 

 

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