At its core, the Motor Vehicle Accident Claims Act (MVACA) is about protection and recourse.

It ensures that those injured in a motor vehicle accident have access to compensation when the responsible party is uninsured, underinsured, or the driver is unknown. Drivers injured in a car accident or with property damage can apply for compensation for injuries or property damage from the Motor Vehicle Accident Claims Fund.

Where this happens the MVACA pays out the claim, then seeks to recoup the funds from the uninsured motorist.

Your licence may have been suspended due to a claim made under the Motor Vehicle Accident Claims Act. This typically happens in scenarios where you’re involved in an accident and:

• You were found to be driving without insurance.
• You were at fault in an accident, and the victim sought compensation from the Motor Vehicle Accident Claims Fund (MVACF), a fund designed to act as the “payer of last resort” for victims when the at-fault driver is uninsured or cannot be identified.

Where a claim is made, the MVACA will want to recoup the costs from the insured motorist. If the driver fails or refuses to compensate Motor Vehicle Accident Claims Act for the monies paid out, the Act allows for the suspension of the driver licence.

The drivers licence will remain suspended until the driver either pays the amount owed in full, enters into a payment program, or negotiates a cash settlement with the fund.

To reinstate a driver’s licence suspended under the Motor Vehicle Accident Claims Act, it’s necessary to clear the debt incurred from being involved in an accident without insurance.

Fortunately, the Act provides flexible options for paying the debt and reinstating the licence, including:

• One-Time Payment: Pay the full amount of  lump sum payment to clear your debt in full. This option is straightforward and eliminates ongoing financial obligations, potentially speeding up the reinstatement process. You can repay the Fund in full by certified cheque, bank draft or money order, payable to the Minister of Finance.

• Monthly Payment Plan: If a one-time payment isn’t feasible, consider setting up a monthly payment plan. This allows you to pay off the debt in more manageable segments, tailored to your financial ability, ensuring a steady path towards clearing your obligations.
  • In a payment agreement: the minimum monthly will established by a collections officer of the MVACA.
  • The payment amount is based upon what you can afford taking into consideration your income, bills, debts and what you can reasonably afford to pay, and is different for each individual.
  • The first repayment must be made to the Fund before the driver’s licence can be reinstated.
  • You will receive a statement 15 days before each subsequent repayment is due, similar to credit card or utility bills you will not be charged interest you can make your monthly payment online.

• Negotiated Settlement: Engage in negotiations for a settlement that could allow you to settle your debt for an amount that is different from what is originally owed. This process considers your financial situation, the total debt, and your ability to pay, aiming for a mutually agreeable resolution.

If you’re facing a suspension under the Motor Vehicle Accident Claims Act in Ontario and are uncertain about how to proceed, the following steps will guide you through reinstatement process to successfully reinstating your driver’s licence.

Steps to Get Your Licence Reinstated

• Assess Your Financial Obligations: If your licence was suspended due to a claim against you, you’ll likely have financial obligations to fulfill. This includes compensating the MVACF for any payouts they’ve made on your behalf.

• Contact the MVACF: To get a clear understanding of what is required from you financially, contact the MVACF directly. They can provide details on how to settle your debts. The MVACF can be reached at:
  • Phone: 1-800-268-7188 (toll-free in Ontario)
  • Website: Search for “Motor Vehicle Accident Claims Fund Ontario” for the most current contact information and online resources.

• Obtain Proof of Insurance: Before your licence can be reinstated, you must prove that you have obtained valid auto insurance. This is a non-negotiable requirement, ensuring you meet Ontario’s legal requirements for drivers.

• Pay the Reinstatement Fee: There’s a fee associated with reinstating your licence. You can find out the exact amount and how to pay it by contacting the Ministry of Transportation of Ontario (MTO):
  • Phone: 1-800-387-3445 (toll-free in Ontario)
  • Website: Visit the MTO website and search for “driver’s licence reinstatement” for specific instructions and forms.

• Apply for Reinstatement: Once you’ve settled your financial obligations and obtained proof of insurance, you can apply for licence reinstatement.

Under the Financial Services Commission of Ontario, insurance companies must comply with these rules for drivers licence suspensions.

• Less than one year: An administrative lapse or suspension of a driver’s licence for less than one year must not affect an individual’s driving record or the number of years licensed for the purposes of rating.

• 12 to 36 months: When the length of an administrative lapse or suspension of a driver’s licence is between 12 and 36 months, an insurer is permitted to use the lapse or suspension as part of its risk classification system. However, the insurer must submit a rate filing with actuarial evidence to FSCO justifying the proposed rating rules. The rate filing will be subject to the normal review and approval process. Otherwise, use of an administrative lapse or suspension of a driver’s licence between 12 and 36 months will not be permitted for the purposes of rating.

• More than 36 months: If the length of an administrative lapse or a suspension of a driver’s licence is more than 36 months, an insurer is permitted to file rules to use the lapse or suspension of a driver’s licence as part of its risk classification system without additional actuarial evidence although the rules must meet the statutory criteria for approval. For example, an insurer may consider the period of time during which the licence has lapsed or been suspended for the purposes of rating.

An administrative lapse or a suspension of a driver’s licence is a documented driver’s licence lapse for administrative or medical reasons that are not connected to driving offence convictions.

Reasons can include non-renewal or expiry of a driver’s licence due to a consumer’s oversight, temporary medical conditions, unpaid parking tickets, outstanding support payments to the Family Responsibility Office or outstanding payment to the Motor Vehicle Accident Claims Fund.