If you have filed an insurance claim with the Insurance Corporation of British Columbia (ICBC) and received a letter stating “We are writing to let you know we are still investigating the above claim. However, our information indicates that you may not have met a condition of your insurance policy with ICBC.”
This is called a Reservation of Rights (ROR) letter, it means that ICBC is investigating your claim but has concerns that could potentially lead to a denial of coverage. This letter serves as a formal notice that while ICBC is reviewing your claim, they reserve the right to later refuse coverage based on their findings.
Why Did You Receive a Reservation of Rights Letter?
ICBC issues an ROR letter when there are uncertainties or potential policy breaches that need further investigation. Common reasons include:
- Possible Insurance Breach: ICBC suspects that you may have violated the terms of your insurance policy, such as driving under the influence or misrepresenting information.
- Suspicion of Fraud: If ICBC believes there is false or misleading information in your claim, they may issue an ROR while they investigate further.
- Coverage Exclusions: The accident circumstances may not fall under the scope of your policy’s coverage.
What Does the Letter Mean for Your Claim?
Receiving an ROR letter does not automatically mean that your claim is denied. However, it does mean that:
- ICBC is still investigating whether your policy will cover your claim.
- They are not waiving their right to later refuse coverage based on new findings.
- You should take the situation seriously and be prepared for a dispute with ICBC over your insurance coverage for the claim.
What Should You Do If You Receive a Reservation of Rights Letter?
If you receive an ROR letter from ICBC, you should seek legal advice. ICBC is now investigating your claim to determine if they can substantiate a coverage denial. This may result in ICBC unfairly denying your claim and often result in significant financial consequences, consulting a lawyer can help you protect your rights.
Conclusion
A Reservation of Rights letter is a warning sign that ICBC has concerns about your claim. While it does not mean an automatic denial, it is important to take proactive steps to support your case and avoid a potential loss of coverage.
The lawyers at Acumen Law have extensive experience navigating ICBC breach investigations. If you receive an ROR letter, contact one of our lawyers right away.