Innocent victims of the wrongful actions of another person under the same insurance contract can now no longer be denied coverage, announced Finance Minister Kevin Falcon.

Historically, if a couple owned a house together and one spouse intentionally damaged it or burned it down, the other spouse - the innocent co-insured - under the same contract could be denied coverage. The changes approved today allow the innocent person to recover losses proportionate to their share of the insured property, while only the guilty party is denied coverage.

The person making a claim as an innocent co-insured must co-operate with the insurer and submit to an examination under oath on request, and the statutory amendment only applies to natural persons making an individual claim - not corporations.

The requirement that the claimant co-operate with the insurer balances the rights of the victim with insurers' concerns about fairness and the possibility of fraud. The innocent co-insured protection applies to all property insurance contracts except auto insurance, which is governed by separate legislation.

The innocent co-insured protection introduced in the Insurance Amendment Act, 2009, was brought into force by order-in-council. Other changes in the 2009 amendment act to improve consumer protection and reduce red tape for insurers will be brought into force once necessary regulations to implement these additional improvements are finalized. The statute and regulations have been developed in consultation with the insurance industry and consumers.

Learn More:

Link to news release announcing the Sept. 15, 2009, Insurance Amendment Act:

http://www2.news.gov.bc.ca/news_releases_2009-2013/2009FIN0010-000331.pdf

Media Contact:

Jamie Edwardson
Communications Manager
Ministry of Finance
250 356-9872