FSCO’s Motor Vehicle Accident Claims Fund (MVACF)

FSCO’s Motor Vehicle Accident Claims Fund (MVACF)

“Payer of last resort”

Although well known among veterans of personal injury and accident benefits, the MVACF is an intriguing concept for newcomers to the legal profession. The MVACF is known as a “payer of last resort” because it is used when someone involved in a motor vehicle accident has no other financial remedy to claim insurance benefits.

In other words, if no one involved in an accident has insurance, the MVACF is the last resort to claim accident benefits insurance. It is a last-ditch effort to claim insurance benefits for injuries suffered in an accident.

The FSCO website reveals that the major functions of MVACF are:
•to provide statutory accident benefits directly to persons involved in an automobile accident, who have no recourse to automobile insurance;
•to provide compensation for personal injury or property damage to victims involved in an automobile accident with an uninsured or unidentified driver or a stolen vehicle when no liability insurance exists; and
•to recover from the owners and drivers of uninsured vehicles monies paid out on their behalf, where legally permissible.

While the fund may recover funds from drivers or owners money paid out on their behalf (where legally applicable), the courts have ruled in at least one case that the MVACF is not entitled to suspend a person’s licence as recourse for failing to pay a judgement debt.

This is in stark contrast to the Motor Vehicle Accident Claims Act R.S.O. 1990, Chapter M.41 sections 4, 10, and 11, where a person suspended by The Motor Vehicle Accident Claims Fund (MVACF) can make arrangements to have the suspension lifted by following the instructions listed on their website .

Financial Services Commission of Ontario. Motor Vehicle Accident Claims Fund. Online <https://www.fsco.gov.on.ca/en/auto/mvacf/Pages/default.aspx>. Retrieved July 23, 2014.

Greg Meckbach. Ontario court rules against auto accident claims fund after attempt to suspend uninsured driver’s licence. April 19, 2913. Daily News online <http://www.canadianunderwriter.ca/news/ontario-court-rules-against-auto-accident-claims-fund-after-attempt-to-suspend-uninsured-drivers/1002239978/?&er=NA>. Retrieved July 23, 2014.

Motor Vehicle Accident Claims Act R.S.O. 1990. Online <http://www.e-laws.gov.on.ca/html/statutes/english/elaws_statutes_90m41_e.htm#BK3>.

Lacey Appleton is a Paralegal student at Centennial College in Toronto studying professional communications with Omar Ha-Redeye.

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