Motor Vehicle Accident Claims Act, R.S.O. 1990, c. M.41

• Jurisdiction: Ontario

Motor Vehicle Accident Claims Act

R.S.O. 1990, CHAPTER M.41

Consolidation Period: From June 30, 2023 to the e-Laws currency date.

Last amendment: 2023, c. 9, Sched. 20.

CONTENTS

Definitions

1 (1) In this Act,

“Chief Executive Officer” means the Chief Executive Officer appointed under subsection 10 (2) of the Financial Services Regulatory Authority of Ontario Act, 2016; (“directeur général”)

“designated insurer” means an insurer named as a designated insurer under subsection (3) and its estate; (“assureur désigné”)

“Director” means the Director of the Motor Vehicle Accident Claims Fund appointed for the purposes of this Act; (“directeur”)

“driver’s licence” means a driver’s licence issued under the Highway Traffic Act; (“permis de conduire”)

“Fund” means the Motor Vehicle Accident Claims Fund; (“Fonds”)

“insured motor vehicle” means a motor vehicle,

(a) that is insured under a motor vehicle liability policy in accordance with the Insurance Act, or

(b) in respect of which there is on deposit with the Registrar money, securities or a bond in an amount equal to the minimum limit of liability prescribed under section 251 of the Insurance Act, or

(c) in respect of which the owner is exempt from the payment of registration fees under the regulations made under the Highway Traffic Act, or

(d) that is registered under the Highway Traffic Act in the name of a municipality; (“véhicule automobile assuré”)

“licence” means a driver’s licence issued under the Highway Traffic Act; (“permis”)

“Minister” means the member of the Executive Council to whom the administration of this Act is assigned; (“ministre”)

“Ministry” means the Ministry of the Minister; (“ministère”)

“permit” means an owner’s permit issued under the Highway Traffic Act; (“certificat d’immatriculation”)

“Registrar” means the Registrar of Motor Vehicles; (“registrateur”)

“Superintendent” means the former position of Superintendent of Financial Services under the repealed Financial Services Commission of Ontario Act, 1997; (“surintendant”)

“uninsured motor vehicle” means a motor vehicle that is not an insured motor vehicle. (“véhicule automobile non assuré”) R.S.O. 1990, c. M.41, s. 1 (1); 1997, c. 19, s. 16 (1); 1997, c. 28, s. 187; 2018, c. 17, Sched. 26, s. 1; 2020, c. 36, Sched. 14, s. 11.

Exception re: excluded driver

(2) Even though a motor vehicle is insured under a motor vehicle liability policy, it shall be deemed to be an uninsured motor vehicle for the purposes of this Act while it is being operated by an excluded driver as defined in the Insurance Act with respect to that policy unless the excluded driver is a named insured under another motor vehicle liability policy.

Designated insurer

(3) Where the Lieutenant Governor in Council is of the opinion that an insurer is not paying or is unable to pay, within a reasonable period of time, claims made against the insurer or claims for which final judgments have been given, the Lieutenant Governor in Council may, by regulation, name the insurer as a designated insurer for the purposes of this Act. R.S.O. 1990, c. M.41, s. 1 (2, 3).

Section Amendments with date in force (d/m/y)

1997, c. 19, s. 16 (1) - 10/10/1997; 1997, c. 28, s. 187 (2, 3) - 01/07/1998

2018, c. 17, Sched. 26, s. 1 - 01/04/2019

2020, c. 36, Sched. 14, s. 11 - 08/12/2020

Fund continued

2 (1) The fund known in English as the Motor Vehicle Accident Claims Fund and in French as Fonds d’indemnisation des victimes d’accidents de véhicules automobiles is continued. R.S.O. 1990, c. M.41, s. 2 (1).

Public Accounts

(1.1) The Fund shall be reported as an account in the Public Accounts. 2023, c. 9, Sched. 20, s. 1 (1).

Amounts recorded in the Fund

(1.2) The following amounts shall be recorded in the Fund:

1. The amount of the balance in the Fund on April 1, 2022.

2. The amount of fees referred to in subsection (2) that are paid to the Fund.

3. All expenditures of public money incurred under subsection (3).

4. Amounts credited to the Fund in accordance with subsection (5).

5. Interest credited to the Fund in accordance with subsection (5.1).

6. Amounts assessed against insurers in accordance with subsection (6).

7. Amounts recovered by or on behalf of the Minister in respect of the Fund, including amounts received in respect of actions, proceedings, settlements, cost awards, recoveries, reimbursements and payments made by debtors owing money to the Fund. 2023, c. 9, Sched. 20, s. 1 (1).

Fee on issue or renewal of licence

(2) Upon the issue or renewal of a driver’s licence, there shall be paid to the Fund by the person to whom the licence or renewal is issued such fee as may be prescribed by the Lieutenant Governor in Council. R.S.O. 1990, c. M.41, s. 2 (2).

Authorized charges

(3) Amounts not exceeding the balance in the Fund may be charged to the Fund and paid out of the Consolidated Revenue Fund for the following purposes:

1. To fund expenses incurred by the Crown in connection with amounts that the Minister is permitted or required to pay under this Act.

2. To fund expenses incurred by the Crown in connection with the administration of the Fund.

3. To reimburse the Crown for expenditures incurred by the Crown, directly or indirectly, for any purpose described in paragraph 1 or 2. 2023, c. 9, Sched. 20, s. 1 (2).

Same

(4) Funding or reimbursements described in subsection (3) may be provided in respect of expenditures incurred by the Crown before the day subsection 1 (2) of Schedule 20 to the Less Red Tape, Stronger Economy Act, 2023 came into force. 2023, c. 9, Sched. 20, s. 1 (2).

Fund may be subsidized

(5) Treasury Board, having regard to the Fund’s condition, expenditures and forecasted liability, may direct that the Fund be credited with such an amount as may be considered necessary or advisable to subsidize the Fund. 2023, c. 9, Sched. 20, s. 1 (2).

Interest credited to Fund

(5.1) Interest shall be credited to the Fund at such rate, at such times and computed in such manner as determined by the Lieutenant Governor in Council. 2023, c. 9, Sched. 20, s. 1 (2).

Liabilities

(5.2) Amounts in satisfaction of any liabilities of the Fund incurred up to and including April 1, 2022 are a charge upon and payable out of the Consolidated Revenue Fund. 2023, c. 9, Sched. 20, s. 1 (2).

Same

(5.3) Any payment in respect of a liability described in subsection (5.2) is deemed to be a charge to the Fund, even though it is paid out of the Consolidated Revenue Fund. 2023, c. 9, Sched. 20, s. 1 (2).

2022-23 Public Accounts

(5.4) The Fund may be reported in the Public Accounts for the fiscal year ending March 31, 2023 as if this section, as it read on the day subsection 1 (2) of Schedule 20 to the Less Red Tape, Stronger Economy Act, 2023 came into force, were in effect during that year. 2023, c. 9, Sched. 20, s. 1 (2).

Assessment

(6) The Lieutenant Governor in Council may assess insurers within a prescribed class of insurers for amounts paid out of the Fund under section 6.1 and for all expenses and expenditures incurred in respect of the Fund in relation to section 6.1. 2002, c. 22, s. 144.

Determination of share

(7) If an assessment is made under subsection (6), the share of the assessment in respect of a class of insurer and the share of the assessment payable by an insurer shall be determined in the manner prescribed by regulation. 2002, c. 22, s. 144.

Insurer to pay

(8) An insurer shall pay the amount assessed against it under subsection (6). 2002, c. 22, s. 144.

Crown may recover

(9) If an insurer does not pay the assessment, the unpaid amount of the assessment is a debt due to the Crown and the Crown may recover the debt by action or by any other remedy or procedure available by law to the Crown for the collection of debts owed to the Crown, whether or not the Chief Executive Officer exercises the rights set out in subsection (10). 2002, c. 22, s. 144; 2018, c. 17, Sched. 26, s. 6.

Cancellation or suspension

(10) If an insurer fails to pay an assessment made under subsection (6), the Chief Executive Officer may suspend or cancel the insurer’s licence issued under the Insurance Act. 2002, c. 22, s. 144; 2018, c. 17, Sched. 26, s. 6.

Revival of licence

(11) The Chief Executive Officer may revive the licence of an insurer whose licence was suspended or cancelled under subsection (10) if the insurer pays the amount owing on the assessment. 2002, c. 22, s. 144; 2018, c. 17, Sched. 26, s. 6.

Definition

(12) In this section,

“insurer” means an insurer as defined in the Insurance Act. 2002, c. 22, s. 144; 2023, c. 9, Sched. 20, s. 1 (3).

Section Amendments with date in force (d/m/y)

2002, c. 22, s. 144 - 09/12/2002

2018, c. 17, Sched. 26, s. 6 - 01/04/2019

2023, c. 9, Sched. 20, s. 1 (1, 2) - 30/06/2023; 2023, c. 9, Sched. 20, s. 1 (3) - 08/06/2023

Director deemed agent for service re uninsured vehicles

3 (1) The Director shall be deemed to be an agent of the owner and of the operator of every uninsured motor vehicle for service of notice or process in an action in Ontario arising out of the use or operation in Ontario of the uninsured motor vehicle, and, where such an action is commenced,

(a) a notice or process shall be served on the Director by leaving a copy thereof with or at the office of the Director; and

(b) a copy of the notice or process shall be sent forthwith by the Director by registered mail to the defendant at the defendant’s last address as recorded with the Ministry of Transportation. R.S.O. 1990, c. M.41, s. 3; 2018, c. 17, Sched. 26, s. 7.

Exception

(2) Subsection (1) does not apply where any part of the claim made is in respect of an amount paid or payable by an insurer by reason of the existence of a policy of insurance within the meaning of the Insurance Act. 1997, c. 19, s. 16 (2).

Section Amendments with date in force (d/m/y)

1997, c. 19, s. 16 (2) - 10/10/1997

2018, c. 17, Sched. 26, s. 7 - 01/04/2019

Application for...