Introduction:

Individuals with limited mobility who buy a new vehicle may be entitled to receive a standing loan for all or some of the new vehicle taxes
The vehicle should not be purchased before the loan has been approved


Individuals with limited mobility who buy a new vehicle may be entitled to receive a standing loan for all or some of the new vehicle taxes, in accordance with the conditions established by the National Insurance Institute.

Who is Eligible?

  • Individuals with a valid driver's license are entitled to the loan if they have been determined to have at least 40% limited mobility after submitting a Mobility Benefit claim.
  • Individuals without a valid driver's license are entitled to the loan if they have been determined to have at least 60% limited mobility and both of the following conditions are met after submitting a Mobility Benefit claim:
    1. The medical committee has determined that they require transportation on a regular basis in order to take care of their daily needs.
    2. They have an authorized driver who has committed to providing transportation on a regular basis in order to take care of their daily needs.
  • At its discretion, the National Insurance Institute may provide a standing loan to two or more siblings, each of whom has established limited mobility of at least 80%, and who live in the same home, even if they are under 3 years old.

Who is Not Eligible?

Choosing Between Entitlements

  • Individuals who receive the Special Services Benefit (Attendance Allowance) from the National Insurance Institute and who are also entitled to the limited mobility benefits, must choose between the two benefits.
  • Someone with limited mobility and is eligible for the Special Services Benefit (Attendance Allowance) will be entitled to benefits in accordance with the Mobility Agreement if they meet one of the following conditions:
    • They are entitled to a Special Services Benefit (Attendance Allowance) at a rate of at least 100%.
    • They have been determined to have 100% limited mobility.
    • A medical committee has determined that they require a wheelchair and they use one.
  • Those who receive the Disabled Child Benefit who are also entitled to receive a Mobility Benefit must choose between the two benefits.
  • Someone with limited mobility who is also eligible for the Disabled Child Benefit can get both benefits in accordance with the Mobility Agreement if they meet one of the following conditions:
    • They have been determined to have at least 80% limited mobility.
    • A medical committee has determined that they require a wheelchair and they use one.
    • They are one of two eligible Disabled Child Benefit recipients in the same family.
  • In all cases, the Disabled Child Department at the recipient's National Insurance Institute branch should be contacted in order to verify that receiving mobility benefits will not prevent him/her from receiving the Disabled Child Benefit as well.

Loan for a Handicap-Accessible (Special Accessories) Vehicle

  • Individuals with limited mobility will be entitled to the loan for a special accessories vehicle if they meet the following conditions:
    1. A medical committee or medical appeals committee has determined that they require a wheelchair and they use one.
    2. The Medical Institute for Road Safety has determined that they require a special accessories vehicle (a vehicle in which they can sit or drive in with their wheelchair), and has determined which accessories are required to enable them to drive or travel in the vehicle. For more information, see: Designating a "Special Vehicle" for Limited Mobility by the Medical Institute for Road Safety.

Shared Vehicle for Entitled Recipients

  • Two or more individuals with limited mobility may only receive the standing loan for vehicle taxes of a single shared vehicle if they are related in one of the following ways: spouse, child or child-in-law, parent (including foster and step-parents), sibling, grandparent, grandchild and meet one of the following conditions:
    1. If only one of them has a driver's license, or neither of them has a driver's license, and they are requesting that a single authorized driver be approved for them together, they must live in the same home.
    2. If they both have driver's licenses, they must live in the same building.

Driving the Vehicle

  • As long as the individual with limited mobility is in the vehicle, anyone with a driver's license may drive it.
  • Individuals approved by the National Insurance Institute to be an authorized driver may drive the vehicle even when the individual with limited mobility is not in the vehicle.

Initial Loan Request

  • The following documentation must be attached to the initial loan request:
    1. Photocopy of a valid driver's license (for those who do not drive, a photocopy of the authorized driver's license) including details of all driving restrictions.
    2. Signed letter of commitment.

Standing Loan Request for a Replacement Vehicle

  • The following documentation must be attached to a loan request for a replacement vehicle:
    1. Photocopy of a valid driver's license.
    2. Photocopy of a valid comprehensive insurance policy.
  • A standing loan for a replacement vehicle will only be provided after the previous standing loan has been repaid and only to individuals with limited mobility meeting the conditions detailed in the previous loan's signed letter of commitment.
  • Individuals with limited mobility who have a driver's license may only receive a standing loan for a replacement vehicle if at least 42 months have passed since receiving the previous standing loan.
  • Individuals with limited mobility who do not have a driver's license may only receive a standing loan for a replacement vehicle if at least 48 months have passed since receiving the previous standing loan.
  • Individuals with limited mobility who received a loan for purchasing mobility accessories may only receive a standing loan for a replacement vehicle if at least 60 months have passed since receiving the previous standing loan.
  • Two individuals with limited mobility who have a shared vehicle, and one of them drives but they are both entitled either individually or together to a private vehicle may only receive a standing loan for a replacement vehicle if at least 48 months have passed since receiving the previous standing loan.
  • The National Insurance Institute may provide a standing loan for a replacement vehicle before the required 42, 48 or 60 month period has passed since receiving the previous loan as detailed above if one of the following has occurred:
    1. The vehicle has disappeared or been destroyed and may not be sold or used by anyone else as determined by the insurance company.
    2. The vehicle was damaged in an accident and a certified assessor has determined that it cannot be repaired in such a way that the individual with limited mobility could continue using it.
    3. The medical state of the individual with limited mobility deteriorated following purchase of the vehicle and driving limitations have been established which prevent him/her from continuing to use the vehicle.
    4. The standing loan was returned in accordance with a National Insurance Institute demand as the result of hospitalization, incarceration or departure abroad, and six months have passes since the loan was returned.

Loan Rates

  • The full amount of the standing loan will be equal to the total vehicle taxes for the determining vehicle (the type of vehicle and engine capacity approved for purchase according to which the standing loan is calculated), but no more than the total vehicle taxes actually paid.
  • The loan rate is established according to the rate (percentage) of limited mobility, as well as if the recipient has a driver's license or not.
  • A determining vehicle is sometimes determined according to a Medical Institute for Road Safety decision.
  • Loan rates are in accordance with the National Insurance Institute's Table of Standing Loan Rates.

Loan Repayment

  • The standing loan must be repaid under the following circumstances:
    1. When replacing a vehicle: After the loan for the previous vehicle has been repaid, a new standing loan may be received to cover the new vehicle taxes.
    2. If one of the following has occurred:
      • The insurance company has determined that the vehicle has been lost or destroyed.
      • The vehicle was damaged in an accident and an assessor certified by the National Insurance Institute has determined that it cannot be repaired in such a way that the individual with limited mobility could continue using it.
      • In accordance with the Medical Institute for Road Safety determination, the National Insurance Institute has confirmed that the individual with limited mobility must replace the vehicle as the result of new driving limitations which prevent him/her from continuing to use the previous vehicle.
      • The vehicle has been sold.
      • The individual with limited mobility has passed away.
      • 12 months have passed since the date on which any of the conditions of entitlement for the loan stopped being met (for example, the authorized driver no longer lives within 1500 m of the recipient's place of residence, or the recipient's driver's license has been revoked).
      • Any of the conditions of entitlement for the loan have not been met.
      • The recipient has violated the obligations detailed in the signed letter of commitment.
    3. In the following cases, the National Insurance Institute may demand repayment of the standing loan:
      • The recipient was hospitalized for at least 6 consecutive months, or 12 consecutive months in certain cases. Nonetheless, the National Insurance Institute will not demand a repayment of the loan in such cases if the authorized driver who previously drove the recipient continues caring for him/her throughout the period of hospitalization; however a new standing loan will not be provided.
      • The recipient is incarcerated for at least 6 months.
      • The recipient is abroad for at least 6 months.

Calculating the Standing Loan Repayment Amount

  • For those repaying a standing loan and receiving a new standing loan:
    • For those receiving a new standing loan, depreciation for the period of use is deducted from the amount to be repaid, as well as an additional rate of depreciation, which is updated from time to time. The purpose of the calculation is to reduce the repayment amount, in order to make it easier to purchase a new vehicle.
    • To repay the loan, written confirmation indicating eligibility for a new standing loan must be obtained from the National Insurance Institute. This confirmation is also used for repayment of the previous loan in the Customs Division.
    • In cases where entitlement to a new standing loan occurs prior to when it normally should in accordance with the Mobility Agreement (i.e. if the vehicle was stolen or the recipient's medical state has deteriorated necessitating a new vehicle), the previous standing loan must be repaid.
    • Calculation of the repayment amount is performed by a National Insurance Institute mobility clerk and it is influenced, among other things, by the repayment rates for those entitled to a new standing loan prior to the date determined by the Mobility Agreement.
  • For those who repay a standing loan and do not receive a new standing loan:
    • The standing loan repayment amount in cases where the loan must be repaid and the recipient is not entitled to a new loan is calculated according to the standing loan rate for the price of the vehicle when purchased multiplied by the vehicle price on the "determining date" (the date on which the event which required the standing loan to be repaid occurred, such as the date on which it was sold).
    • For a recipient who passes away, the "determining date" is 12 months from the date of his/her passing or the date on which the request for the standing loan to be repaid was submitted; whichever comes first.
    • For cases in which the National Insurance Institute demands the standing loan be repaid and the outstanding debt is not repaid within 2 months of the "determining date", an annual interest rate of 3.80% (as of 1.1.09) will apply. This rate will change from time to time.
    • In order to repay the loan, whether initiated by the recipient or as the result of a National Insurance Institute demand, written confirmation for loan repayment must be received from the National Insurance Institute.
    • Repayment is performed through a bank, confirmation of which must then be submitted to the National Insurance Institute.

Please Note

  • Eligible standing loan recipients may only receive the loan after signing a letter of commitment (which is attached to Form 8200 - Mobility Agreement Benefits Claim) on which the recipient commits to meet all requirements established by the National Insurance Institute.
  • A lien may not be placed on the vehicle, nor may it be pawned, seized or used as collateral for any debts without National Insurance Institute approval. Recipients who do not have advance approval for such an action will be required to return any benefits that they received as part of the Mobility Benefit.

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