Province cites improved access to care for those injured in car collisions as purpose of proposed law
Alberta says that if passed, its Automobile Insurance and Care-First Benefits Act would shift the focus away from costly and time-consuming litigation and towards ensuring that Albertans injured in vehicular collisions receive the care and support they need.
“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, Alberta’s treasury board president and finance minister, in a provincial government news release.
“Care-based auto insurance systems work by replacing costly legal battles with more efficient access to benefits and improved premiums, and the success of these reforms will be determined by the extent of litigation that the government permits,” said Aaron Sutherland – vice president Pacific and Western, of the Insurance Bureau of Canada (IBC) – in a news release of the IBC.
Alberta’s news release mentioned plans to introduce legislation preventing lawsuits except if an at-fault driver is convicted of a serious offence under the Criminal Code or Traffic Safety Act or if an injured Albertan wants to recover out-of-pocket expenses beyond the amount stated in the insurance policy.
“The more lawyers are involved in Alberta’s Care-First system, the less likely that drivers will save,” Sutherland said in the IBC’s news release. “Other provinces and international jurisdictions have recognized this, and it is imperative that Alberta follow suit.”
According to the news release, Alberta’s new care-first automobile insurance system will provide for an independent Alberta Automobile Care-first Tribunal. This change seeks to give Albertans flexibility in resolving disputes and the ability to appeal their insurer’s decisions on their benefits.
The provincial government's news release said that Alberta’s new care-first legislation aims to offer injured Albertans who cannot work or go to school better and faster access to health and medical benefits. These benefits – potentially for life, depending on the injuries’ severity – may include medical care, rehabilitation, daily living assistance, income support payments, and retirement pay.
For Albertans involved in accidents or collisions, the proposed legislation will include criteria for permanent impairment benefits for those permanently injured and death benefits for those who have passed away, the news release said. Ultimately, the proposed law seeks to decrease auto insurance rates for Albertans as time goes by, the news release added.
“Our goal is to build a stronger auto insurance system to better protect Albertans and their pocketbook,” Horner said in Alberta’s news release.
“Alberta’s insurers look forward to working with the provincial government to ensure these reforms enhance the care provided to those injured in collisions while ensuring premium affordability over the long term,” Sutherland said in the IBC’s news release.
Alberta said in its news release that if the legislation is passed, industry partners will work on implementing the changes over the next two years and will need to develop 3.4 million new auto insurance policies.
In the news release, Alberta added that it will consult with healthcare and insurance representatives on the care-first system’s operational elements and may introduce regulations to implement the changes this fall. Alberta expects the privately delivered care-first model to begin on Jan. 1, 2027.
“While these reforms are a good step forward, today’s announcement alone will not bring insurers back to Alberta,” Sutherland said in the IBC’s news release. “To do that, the province must end its rate intervention, cut red tape and let the competitive market create the conditions for lasting affordability.”
