The Motor Vehicle Accident Indemnification Corporation (MVAIC) is a non-profit corporation established Under Article 52 of the New York Insurance Law to provide compensation to innocent victims of motor vehicle accidents within the state involving drivers without collectible insurance or whose identity cannot be ascertained.
On October 17, 2011, a bicyclist attempting to pass a stopped taxi was struck by the rear door opened by the departing passenger. Once the passenger was out of the taxi, the taxi driver left the scene without being identified. Samarskaya v. Motor Vehicle Accident Indemnification Corp., 158018/12 NYLJ 1202671795516, at *1 (Sup., NY, Decided September 18, 2014).
The bicyclist claimed injuries and, unable to identify the driver or owner of the cab, filed a claim with MVAIC. MVAIC denied the claim and the passenger sued. MVAIC moved for summary judgment on the theory that the Insurance Law did not intend MVAIC to cover injuries caused by passengers exiting vehicles.
MVAIC relied upon a 2010 decision (Kohl v. American Tr. Ins. Co., 15 N.Y.3d 763, 906 N.Y.S. 2d 809) with the identical facts. In Kohl, the New York Court of Appeals held that a passenger opening the rear door of a taxi did not constitute “operation” of the taxi.
The Samarskaya court distinguished their case from Kohl in that MVAIC’s obligation to the claimant is based upon the “use” of a vehicle (citing Insurance Law 5218 (a)) and Kohl was decided based on the term “operate” in the underlying insurance policy. The court reasoned that the “very purpose” of a taxi includes picking up and dropping off passengers and thus, the opening and closing of the rear doors is use of the taxi under the Insurance Law.
The court adhered to the language of Article 52 of the Insurance Law to support this decision, but the reasoning suggests an expansive interpretation of “use” a taxi that may have an impact on the interpretation of insurance policies covering taxi fleets. Stay tuned for the inevitable appeal.
Thanks for Jim Rogers for his contribution to this post. If you have any questions, please email Paul at