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Motor Vehicle Accident Claims Fund

Motor Vehicle Accident Claims Fund Featured Image

Motor Vehicle Accident Claims Fund

Worried about the settlement amount?

The amount of car accident settlement payouts in Alberta can vary widely. And that depends on the specific circumstances of the accident and the injuries sustained.

Typically, car accident settlement payouts compensate the injured party for any losses or damages from the accident.

But you also need to know that there are certain limitations. For example,  pain and suffering damages are subject to a cap of $5,202 for minor injuries. And the cap is $124,616 for more serious injuries.

Let’s know more about the car accident settlement amount.

What is the Motor Vehicle Accident Claims Act?

The Motor Vehicle Accident Claims Act (MVACA) is a framework for individuals to seek compensation for injuries and damages resulting from motor vehicle accidents.

Furthermore, the MVACA has established a no-fault insurance system in Alberta. That means individuals are entitled to certain benefits regardless of who is blameworthy for an accident.

Under the MVACA, individuals involved in a motor vehicle accident are eligible to receive benefits such as:

  • Medical expenses
  • Rehabilitation expenses
  • Lost wages and other associated costs

These benefits are provided by the injured person’s own insurance company, regardless of who is responsible for the accident.

However, in some cases, another party is at fault for the accident. Besides, the injured person’s benefits are insufficient to cover all their losses. In such a case, they may be able to pursue a claim for additional compensation through a lawsuit or settlement negotiations.

Also, the MVACA sets out certain time limits, requirements for claiming compensation, and rules for resolving disputes.

What is the Motor Vehicle Accident Claims Fund?

The Motor Vehicle Accident Claims Fund (MVACF) is a program for compensating individuals injured or suffering property damage. And it only applies to a motor vehicle accident caused by an uninsured or unidentified driver.

Additionally, the MVACF is funded by a levy paid by all registered motor vehicle owners in the province. Also, it is administered by the government agency responsible for managing the program.

Furthermore, the MVACF offers a safety net for those who cannot seek compensation from an uninsured or unidentified driver. This fund can compensate for various losses and expenses, including medical expenses, lost wages, and property damage.

Note that, to be eligible for compensation from the MVACF, individuals must meet certain criteria. Hence, only by following specific procedures, you can ask for the fund.

Moreover, individuals must report the accident to the police. Then give the MVACF a written notice of their claim within a specified time frame.

Although the MVACF provides some relief for individuals injured or suffering damages in a motor vehicle accident, they generally recommend that individuals carry adequate insurance coverage to protect themselves in the event of an accident.

How are Car Accident Settlements Calculated?

The settlement amount calculation process leans on various factors. For instance: the severity of the injuries, the extent of property damage, and the impact of the accident on the victim’s quality of life.

Adding to that—the settlement amount should be the total amount of damages suffered by the victim.

That may include the following:

  1. Medical expenses, including the cost of surgery, medication, and rehabilitation.
  2. Loss of income, including wages or salary, lost due to the victim’s inability to work after the accident.
  3. Property damage, including the cost of repairing or replacing the victim’s vehicle.
  4. Pain and suffering include the physical and emotional distress caused by an accident.

Keep in Mind

The compensation for each category of damages differs case-by-case basis. That way, law enforcement can consider the circumstances of the accident and the extent of the victim’s injuries.

In some cases, the parties involved in the accident may agree to settle the claim outside of court. If the case moves to trial, a judge will determine the amount of compensation based on the evidence presented.

How Long Does It Take to Settle a Car Accident?

It can take 18-24 months to reach a legal settlement. Nevertheless, the length of time it takes can vary depending on several factors, such as:

  • The complexity of a case
  • The severity of injuries
  • And the willingness of all the parties to negotiate

Then again,  the victim might require ongoing medical treatment. As a result, the process can take longer to accurately assess the damages suffered.

Sometimes, it can take anywhere from several months to several years to settle a car accident claim. It’s because the claims process typically involves various stages, including:

  • Investigation
  • Negotiation
  • Case proceeding to court

Final Remarks: Seek Legal Assistance

You may need to fight the case for being in a car accident and believe you are not at fault. And you can protect yourself by understanding your legal rights and taking the appropriate steps.

It’s important to note that the process can be time-consuming and stressful. So, it is important to have a support system to help you through the process. In this regard, a personal injury lawyer can provide expert legal advice and guidance on your legal rights and options.


For further information on car accident compensation, see these queries below:

How Much Can I Claim from Road Accident Fund?

You can receive up to $200,000 in motor vehicle accident claims funds. The specific amount you will get will depend on several aspects, such as:

  • Impact of the injuries on a victim’s life
  • The severity of the accident
  • Level of insurance coverage of the other driver

How Much Does Road Accident Fund Pay for Arm Injury?

The degree and form of a person’s injuries and other aspects. For example, the seriousness of the collision and the other driver’s insurance coverage. All these affect how much compensation they are eligible for from the MVAC (Motor Vehicle Accident Claims Program).

Who Pays Compensation for Car Accidents?

Usually, the car owner is not responsible for paying compensation for an accident, except when driving and at fault. If another driver cause the accident, their insurance company should pay compensation.

However, the car owner might allow someone else to drive their car. So, if that driver causes an accident, the owner may be liable and use their insurance policy to compensate.

What Injuries Can You Claim after a Car Accident?

If another driver’s negligence or fault causes injury or damage, you can make a motor vehicle accident claims claim for any resulting injuries. Common injuries that people claim after a car accident include:

  • Whiplash
  • Head injuries
  • Broken bones
  • Soft tissue injuries
  • Internal injuries
  • Emotional and psychological injuries such as PTSD and depression
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