It is MVAIC again

The Motor Vehicle Accident Indemnification Corporation (MVAIC) serves as New York’s safety net for no-fault insurance claims when traditional coverage is unavailable. However, the timing and circumstances under which claimants can seek relief from MVAIC remain complex legal issues that courts continue to interpret.

Two recent appellate decisions demonstrate the nuanced approach courts take when evaluating MVAIC claims. The key distinction often lies in whether the responsible vehicle’s owner is known and whether proper procedural steps have been followed. These cases underscore the importance of understanding the hierarchy of remedies available under New York No-Fault Insurance Law and the specific requirements that must be met before MVAIC becomes liable.

For healthcare providers and injured parties navigating the no-fault system, these decisions provide crucial guidance on when MVAIC claims are viable and what preliminary steps must be exhausted first.

Jason Tenenbaum’s Analysis:

Metropolitan Med. Supplies, LLC v MVAIC, 2013 NY Slip Op 51583(U)(App. Term 2d Dept. 2013)

“Since plaintiff and its assignor were aware of the identity of the owner of the vehicle which struck plaintiff’s assignor, plaintiff, as assignee, was required to exhaust its remedies against the vehicle’s owner before seeking relief from MVAIC”

Compare with: e.g.,

Li-Elle Servs., Inc. v Motor Veh. Acc. Indem. Corp., 36 Misc.3d 144(A)(App. Term 1st Dept. 2013)

“The action, seeking recovery of no-fault first-party benefits, is not ripe for summary dismissal, since defendant MVAIC failed in its burden to establish, prima facie, that plaintiff’s assignor was not a “qualified person” entitled to no-fault coverage “

Key Takeaway

When the responsible vehicle’s owner is identifiable, claimants must first pursue remedies against that owner before turning to MVAIC. However, MVAIC bears the burden of proving that an injured person doesn’t qualify for coverage, creating different procedural requirements depending on the specific circumstances of each case.

Related Articles

• New York No-Fault Insurance Law
• Understanding the amendments to no-fault regulations and their implications
• No-fault verification requirements and compliance standards
• Reasonable excuse standards in no-fault proceedings
• Understanding IME no-shows and their consequences in no-fault claims

Legal Update (February 2026): MVAIC’s operational procedures, eligibility requirements, and fee schedules have been subject to multiple regulatory amendments since 2013. Practitioners should verify current MVAIC claim procedures, exhaustion requirements, and applicable fee schedules, as significant changes may have occurred in the intervening years.