Compensation Fund

The Bereavement Authority of Ontario has a compensation fund with the purpose of compensating an individual who suffered financial loss due to a failure on the part of a licensee complying with the Funeral, Burial and Cremation Services Act, 2002 (FBCSA) or the regulations or with the terms of an agreement made under the FBCSA.

Once all documents have been received by the BAO, the following steps are taken:

i.Written claims are received by the Registrar who then gives a copy of all claim documentation to the Compensation Fund Committee.

ii. Committee members will review the claim and related materials to determine eligibility.

iii. If disallowed, the claimant is notified of the Committee’s decision together with written reasons for that decision.

iv. If a portion of the claim is allowed, the claimant is notified of the Committee’s decision and receives written reasons for that decision. After the claimant subrogates to the fund any judgement or other right of any kind that the claimant has to the participant or any other person in respect to the claimant’s claim, the Committee will direct the Trustee to pay the claim to a maximum of $40,000, exclusive of costs.

v. If a full claim is approved, the claimant will be required to subrogate to the fund any judgement or other right of any kind that the claimant has to the participant or any other person in respect to the claimant’s claim. Once the claimant has assigned to the fund any judgement or other right of any kind that the claimant has to the participant or any other person in respect to the claimant’s claim, the Committee will direct the Trustee to pay the claim to a maximum of $40,000, exclusive of costs.

vi. The Committee reports the determination of each claim to the Registrar.

vii. BAO staff record details of all claim submissions and decisions made.

The Compensation Fund Committee became active on April 1, 2016, and is the “Committee” under Part IV of the General Regulations made pursuant to the Funeral, Burial and Cremation Services Act, 2002 (FBCSA).

The role of the Committee is responsible for:

a. Ensuring compliance with the FBCSA and its Regulations respecting the Fund;

b. Determining eligibility of claims for compensation from the Fund;

c. Exercising discretion in determining which documents which documents must be received from claimants and participants, regarding their respective eligible claims and prospective obligations to the Fund;

d. Notifying participants of their failure to meet obligations or liabilities to the Fund;

e. Appointing and communicating with the Trustee;

f. Identifying long term investment goals for the Fund;

g. Ensuring that the Trustee reports regularly to the Committee and the Board of Directors; and

h. Managing and reporting the affairs of the Fund to the Minister and the Board of Directors.


The Committee shall consist of a minimum of five members, comprised of:

i. three members of the Board of Directors, two of whom are not licensed class 1 or 2 Funeral Establishment Operator(s), Transfer Service Operator(s), Funeral Director(s), a Funeral Sales Representative or a Funeral Preplanner; and

ii. a minimum of two members who are representatives of the consumer interest but who are not:

     a. members or past members of the Board of Directors;

     b. licensees or past licensees under the FBCSA;

     c. Shareholders, officers, directors, partners or employees of a licensed or previously licensed operator.

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