Compensation Fund

AMVIC maintains a Compensation Fund for consumers who have suffered an eligible financial loss as the result of a transaction with an AMVIC-licensed business that has filed for receivership, has filed for bankruptcy or is no longer licensed with AMVIC. Consumers can submit a claim to AMVIC’s Compensation Fund subject to the limits in place at the time of the transaction and as set out in AMVIC Bylaw 2 – Compensation Fund.

AMVIC encourages consumers to pursue every possibility for compensation, including efforts to resolve matters on their own with the business or filing their own civil claim, which consumers can do at the same time as filing a claim with the Compensation Fund.

Amounts

Compensation may be available for eligible financial losses related to a transaction with a business that was licensed with AMVIC at the time of the transaction and is no longer licensed with AMVIC. Prior to April 1, 2024, the maximum payout per claim was $25,000 with a cap of $300,000 per failed business. Effective April 1, 2024, the maximum payout per Compensation Fund claim increased to $30,000 and the $300,000 cap per failed business has been completely removed. This will allow for more timely payouts of eligible claims as well as recognize the increase in the average vehicle value, however compensation from the fund may not cover your entire loss.

Beginning Jan. 1, 2025 and for each calendar year after, the maximum payout amount per transaction will be increased annually, based on a calculation related to the annual change in the Alberta Consumer Price Index published by Statistics Canada. For details on the calculation, please see section 5.7 of AMVIC Bylaw 2 – Compensation Fund. Maximum possible payout for each transaction is based on the transaction date.

A transaction is defined as the purchase, lease, consignment or other arrangement between a consumer and an AMVIC-licensed automotive business, as per AMVIC Bylaw 2 – Compensation Fund.

Unlicensed sellers (curbers), backyard mechanics and private sales

Transactions with curbers, backyard mechanics and private sellers are not eligible for compensation from the Compensation Fund. Curbers are illegal sellers operating without the required AMVIC licence. Typically, curbers sell stolen, damaged, or odometer-tampered vehicles. Backyard mechanics are unlicensed service and repair shops. Business-to-business transactions are also not eligible for compensation from the Compensation Fund.

Timeline to submit a claim

A consumer must submit a claim to the fund no later than three years from the date of the transaction with the automotive business.

Recovery from other sources

You can make a claim to the Compensation Fund and also pursue other avenues for compensation. Bylaw 2 requires claimants to advise AMVIC if you recover money from any other source, as claimants are not eligible for compensation from the fund for those amounts.

How to make a claim

Please contact the Compensation Fund coordinator at compfund@amvic.org or 780-800-1914 to help you file a claim. Once a claim is received, AMVIC will review your documents and request any additional information required. Your claim will be considered and you will be notified of the decision, including reasoning. Each claim is dependent upon its circumstances and claimants will receive periodic updates. Once you are notified of the decision, there is a 30 day appeal period for all claimants. After the 30 day appeal period has passed and if no appeal has been received, eligible claims will be paid by cheque from AMVIC.

More information about the Compensation Fund can be found in AMVIC Bylaw 2 and AMVIC’s Compensation Fund Policy.