The Alberta Government has introduced the Automobile Insurance Act which is designed to make the insurance system in the province more reactive to the province's needs.
According to a March 24 release, the act will improve access to health and medical benefits for those involved in a collision, including medical care, rehabilitation and daily living assistance.
"Care-first is a term we use intentionally because Albertans who are injured in a collision truly need their care and well-being to come first," said Nate Horner, President of the Treasury Board and Finance Minister. "Our goal is to build a stronger auto insurance system to better protect Albertans and their pocketbook.”
Under the proposed legislation, Albertans injured in a motor vehicle collision will have access to income support payments and retirement benefits, potentially for life based on injuries.
Those unable to work or attend school will be eligible for the benefits. A separate benefit will be established for those who suffer permanent impairment if a loved one dies in a collision.
Chiropractors play a crucial role in helping accident victims recover and restore their quality of life," said Dr. Jacqueline Boyd, chair of the Chiropractic Association of Alberta." In Alberta, the new system will ensure that those needing care after a collision receive immediate, high-quality chiropractic services and team-based care.”
The goal of the new system is to move the focus away from court battles and litigation and instead to providing care and support for those dealing with injury-related collisions while bringing down insurance rates for all of Alberta's drivers.
At a previous press conference in November, Horner noted the change to the Care-first model could save Alberta drivers up to $400 per year.
Legislation will limit the ability of one driver to sue another, except if an at-fault driver is convicted under the Criminal Code or Traffic Safety Act of a serious offence.
To continue resolving auto insurance disputes, the new insurance system will create an independent Alberta Automobile Care-first tribunal, which will allow drivers to appeal insurance company decisions.
More regulations to implement the change are expected later in 2025 with a full implementation expected for Jan. 1, 2027, which gives existing insurance companies less than two years to prepare for the change.
Not everyone is on board with the proposed changes.
The Alberta Civil Trial Lawyers Association sees the introduction of the Automobile Act as the first step toward the province's move to no-fault insurance, which will strip drivers of their rights, reduce accountability and leave injured Albertans with fewer protections.
"Our Association remains opposed to a no-fault auto insurance system in Alberta, and we are deeply concerned that Bill 47, as introduced today, moves Alberta down this path," said Jackie Halpern, spokesperson for the Alberta Civil Trial Lawyers Association. "The government’s new 'care-first' system removes the fundamental right of Albertans to hold at-fault drivers and insurance companies accountable through the courts. We are particularly disappointed by the restrictions on litigation and the broad discretion given to insurance companies to make benefits decisions that will be difficult for injured Albertans to challenge — even with the creation of a new tribunal."
Halpern notes that in the association's discussion with Albertans, they have consistently opposed no-fault auto insurance.
No-fault insurance, according to the website TDinsurance.com, is defined as insurance where your own insurance company handles an insurance claim, regardless of who is at fault in a collision.
"Public polling continues to show that Albertans overwhelmingly prefer a system where fault matters, accountability is preserved, and justice can be sought in court," said Halpern.
"We remain committed to working constructively with the government to improve Alberta’s auto insurance system. We support reforms that enhance affordability, expand consumer choice, and improve access to care — without undermining the rights and freedoms that Albertans hold dear."
The Alberta Civil Trial Lawyers Association is a non-profit society with a mission to advocate for a strong civil justice system in the province.
