ICBC's denial of claim for truck repairs reversed by tribunal

The B.C. Utilities Commission has asked ICBC to provide information on potential rate hikes through 2020, but the public insurer has so far refused. Nov. 22, 2016. (CTV)

A B.C. man has won his dispute with ICBC after challenging the insurer's refusal to pay for repairs to his vehicle that were required when a rodent's nest caught fire under the truck's hood.

The province's Civil Resolution Tribunal posted the decision in the case online Wednesday, saying the evidence put forward did not support the insurer's decision to deny coverage and awarding the car's owner $5,000.

In 2021, Horst Thiele was five hours into a road trip in his 2005 Chevrolet Silverado 3500 pickup when he "smelled 'burned oil' and heard loud engine noises," he told the tribunal. After pulling over he discovered “a lot of heat, heavy fumes, and smoke” and called a tow truck, according to the decision.

While Thiele said the cause of the fire was the rodent nest catching fire, ICBC argued that Thiele had failed to prove that was the case and that the damage could have been caused by a "mechanical failure," which was not covered under the policy.

Tribunal vice-chair Andrea Ritchie notes that Thiele submitted an invoice from the mechanic that performed the repairs. The invoice said several parts were melted and burned and required replacement due to "fire under turbo area [rodent nest],” the decision says.

ICBC argued, in part, that Thiele did not retain the damaged parts and therefore "deprived it of the right to inspect the vehicle" before it was repaired, the tribunal heard.

Not retaining damaged car parts, Ritchie found, was reasonable in the circumstances given that Thiele "was not aware, and it would not be common knowledge" that something like this would be required to make a claim.

Further, Ritchie accepted Thiele's evidence that he did not know he could make a claim for the damage until the repairs were completed as an explanation for why he did not immediately contact ICBC and why he did not take photos of the damage.

The tribunal decides cases based on a balance of probabilities, meaning it determines what is more likely that not to have occurred in a case.

"Although ICBC argues Mr. Thiele has not proven his truck’s damage resulted from a fire or rodent nest rather than just being empty of oil or some other mechanical failure, I disagree. The best evidence of the cause of the truck’s damage is from (the mechanic), which actually investigated the damage and performed the repairs," Ritchie wrote.

"There is nothing in evidence that indicates there was any other oil leak, or any other mechanical failure," she continued.

While Thiele paid a total of $6,384.30 for repairs to his truck, the tribunal is only allowed to award a maximum of $5,000 in small claims cases. In addition to this amount, Thiele was also awarded $169.60 in interest and $175 as reimbursement for CRT fees.