It’s a common expectation that all vehicle owners have valid vehicle liability insurance. However, this may not always be the reality. Some vehicles may not have this insurance, and others may flee the scene of a motor vehicle accident, leaving the injured party in a uniquely challenging situation.
Another instance is when the driver at fault is unknown or cannot be identified. In these two scenarios, what is a person injured in the collision expected to do? This piece will cover what you should do in a situation where an injured person has a collision with an unknown driver or uninsured vehicle.
How can an injured person be compensated where the at-fault driver flees the scene or has no valid liability insurance?
Dealing with a hit-and-run or collision with an uninsured driver can be overwhelming, especially when it results in bodily injuries. However, the Alberta Motor Vehicle Accident Claims Act (MVACA) provides a pathway for relief in such scenarios. The Motor Vehicle Accident Claims Program (MVAC) was established in 1947 and is designed to compensate individuals who suffer bodily injury or death due to a motor vehicle accident in Alberta, where the at-fault driver is either uninsured or unidentified. This should provide reassurance for the injured party. The MVAC is regulated by Alberta’s Motor Vehicle Accident Claims Act (MVACA).
What are the eligibility criteria for compensation under the Motor Vehicle Accident Claims Program?
To be eligible for this program, the following criteria must be met:
• The injured person suffers bodily injuries because of the collision; the MVAC does not apply to property damage.
• The at-fault driver is not insured or is unknown.
• The uninsured or unknown at-fault driver is solely at fault for the injuries suffered
• The injured person must have made reasonable efforts or done their due diligence to identify the unknown driver with no success. The injured person can show reasonable effort by gathering evidence of the collision scene, police reports, collecting statements of witnesses at the scene and photographs of the collision scene
• Where the witness is uninsured, the injured persons can show due diligence by getting the police report, the information of the at-fault driver, their license registration number, and their identification.
• The injured person must be a resident of Alberta. In cases where the injured person is not an Alberta resident, their home resident must have a similar compensation program to that of Alberta residents.
• The collision must have happened in Alberta
• The injured person must notify the Administrator of MVAC in writing the details of the accident and efforts made to identify the driver within 90 days of the accident. In case where the at-fault driver is uninsured, the written notice to the Administrator must be given as soon as possible.
• In a case where the injured person wants to file a lawsuit against the Administrator of MVAC for compensation of the injuries suffered, the lawsuit must be filed within 2 years of the collision; otherwise, the injured person will be barred from making a compensation claim.
Filing a claim under MVAC
When filing a lawsuit for compensation within 2 years of the accident, the injured person can bring the action against the administrator of MVAC alone as the defendant, or as a co-defendant where there are other individuals responsible for the accident. The administrator must be named “The Administrator of the Motor Vehicle Accident Claims Act” in the lawsuit. The injured person must draft a statement of claim, which outlines the details of the accident, the injuries suffered, and the compensation sought, and file it with the court. It is also essential to ensure that all named defendants are served with the claim after it has been filed in court.=
MVAC Settlement Cap
While MVAC provides a vital safety net, it is worth noting that the maximum compensation from the MVAC fund per accident is $200,000, irrespective of the number of people injured in the collision, and the amount to be paid to each person shall be divided proportionately based on the severity of the bodily injury to each person.
What happens when the judgment given is in excess of $200,000?
Though $200,000 may seem to be a lot of compensation, it may not be sufficient where the injured person suffers a cataclysmic bodily injury. Therefore, where it is determined that the bodily injury sustained by the injured person is more than $200,000 worth of bodily damage, the injured person may be eligible to receive additional compensation from their insurance company. Where the injured person has the Family Protection Endorsement coverage (SEF 44 coverage) with their insurance provider, the SEF 44 coverage allows the injured party to receive the compensation that MVAC does not cover.
In other words, you may still be eligible to receive additional compensation beyond what the MVAC program offers, as long as the total amount doesn’t exceed the limits of your third-party liability insurance.
Where is the MVAC not applicable?
MVAC does not compensate in the following circumstances:
• Where the party making the claim is a government agency.
• Where the Individuals were injured while boarding or exiting public transit, except where there are other defendant(s) at fault other than the municipality.
• Where the injured person is already entitled to recover compensation from other channels – this is to prevent double-dipping.
Key Takeaways
• Time is of the essence; make sure you file the appropriate notice and claims within the time prescribed to avoid losing your right.
• Make sure to sue all parties that may be liable for the collision.
• MVAC only covers bodily injury or death. Claims for property damage are not eligible.
• The maximum amount payable from the MVAC fund is $200,000 per accident, regardless of the number of injured parties. If multiple people are injured, the amount is divided proportionally based on the severity of each person’s damages.
• Getting a Family Protection Endorsement coverage (SEF 44 coverage) will offer additional protection against unidentified or uninsured drivers.
If you have sustained injuries in a motor vehicle accident where the at fault driver is either uninsured or unknown, our lawyers are available 24/7 to review the facts of your specific case and provide information to you on the options available to you, including assistance with your Accident Benefits claim.
We can be reached at 825-203-9801 or chat live a member of our legal team now on our home
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