Jul 20, 2021 in News Car Accident

Car Accident: What is Ontario’s Motor Vehicle Accident Claims Fund?

The Superior Court of Justice of Ontario recently ruled on a case involving the province’s Motor Vehicle Accident Claims Fund (MVACF), a seldom-used payor of last resort in motor vehicle accident claims where there is no insurer. Below, we’ll break down what the MVACF does, why it’s an important resource for accident victims and car accident lawyers, and look at the Superior Court’s decision. 

What is the Motor Vehicle Accident Claims Fund?

Simply, the MVACF provides compensation to injury victims when there is no insurer to deliver benefits. In Ontario, every injured motor vehicle accident victim is eligible to receive benefits under the province’s Statutory Accident Benefits Schedule (SABS), even if they are at fault for the accident. The benefits are generally paid through the injury victim’s insurer. If the injury victim is uninsured but was a passenger in an insured vehicle, they may seek benefits through the vehicle’s insurer. If the injury victim is uninsured and was not in an insured vehicle (i.e. they were a pedestrian, a cyclist, or were in an uninsured vehicle), they may seek benefits through the insurer of the other vehicle involved in the accident.

In rare circumstances, an uninsured person may be injured by an uninsured vehicle, or by a vehicle that fled the scene and was not identified. In these unusual situations, the injury victim and their car accident lawyers may seek compensation through the MVACF.

Why is the MVACF Necessary?

Pedestrians and cyclists are the most vulnerable road users in Ontario. They are also the most likely to be uninsured, but that shouldn’t prevent them from accessing the statutory accident benefits to which all Ontario motor vehicle accident victims are entitled. In the rare situation that an uninsured pedestrian or cyclist is injured by an uninsured motorist, the MVACF steps in.

The Recent Superior Court Decision 

In November 2014, a cab dispatched by Beck Taxi struck a pedestrian in Toronto and allegedly fled the scene. Beck does not own the vehicles it dispatches, and it testified that the cab with the number reported by the victim wasn’t near the location of the accident.

According to Law Times, Beck Taxi carried a ‘standard non-owned automobile’ insurance policy provided by Royal & Sun Alliance. This was a business policy rather than car insurance, and it covered ‘claims against the insured for vicarious liability for the driver or car, even if the insured does not own or drive the motor vehicle.’ However, it didn’t cover benefits under the Statutory Accident Benefits Schedule, and so the insurer declined to pay. An arbitrator on the case ruled in the insurance provider’s favour.

In Her Majesty the Queen in Right of Ontario (Minister of Government and Consumer Services) v Royal & Sun Alliance Insurance Company of Canada, the MVACF filed an appeal to the Superior Court contending that insureds covered by this sort of policy should be liable for SABS payments. The court upheld the arbitrator’s decision.

Contact Neinstein Personal Injury Lawyers

If you’ve been injured in a motor vehicle accident, the car accident lawyers at Neinstein can help. Reach out today to schedule a free, no-obligation consultation.

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