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Alberta has introduced new legislation that would overhaul the province’s current auto insurance model in favour of a “care-first model” that would also limit lawsuits to at-fault drivers convicted under the Traffic Safety Act.

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Finance Minister Nate Horner on Monday introduced Bill 47 — the Automobile Insurance Act — which aims to make Alberta the first province in Canada to adopt a privately delivered “care-first” auto insurance system. If passed, Albertans would have limited ability to pursue legal action except in select cases.

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“Under a care-first insurance system, everyone injured in a traffic accident can access medical rehabilitation, income support and permanent impairment benefits regardless of who is at fault in that collision,” Horner said.

“But let me stress, fault still matters.”

If passed, this will apply to accidents that occur in or after January 2027.

Limited ability to pursue litigation

Horner said at-fault drivers would be penalized with higher premiums and, in some cases, Albertans who were injured in collisions would be able to sue at-fault drivers for pain and suffering damages if the driver was convicted of an offence under the Criminal Code or Traffic Safety Act.

Those who have to pay out of pocket beyond the benefits provided by the policy will also be able to sue the at-fault driver for those expenses.

“We have to make sure that such circumstances are reasonable since lawsuits are driving cost increases in auto insurance, with reports showing a 48 per cent increase in collision-related lawsuits between 2018 and 2022,” Horner said.

“It’s no wonder insurance rates have spiked. This legislation will reduce costs while putting the focus on providing care for those who are injured in an accident.”

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Officials said the legislation would establish criteria to potentially prevent perpetrators from receiving full benefits under the model, such as in cases where the person has willfully caused an accident, bodily injury or death, and the person at fault was convicted of an offence under the Criminal Code or Traffic Safety Act.

The example used by officials was a situation where a stolen vehicle was involved in a collision, and if the perpetrator is convicted, they would not be entitled to the full range of benefits. Horner said the details are still being discussed.

Alberta drivers will have ‘best benefits’ in Canada: province

The province based the “care-first” model on other systems in Canada, pointing to Manitoba, which Horner said had the “highest level of benefits in the land.”

Horner said the province is taking Manitoba’s benefits and will be increasing them to reflect Alberta salaries and wages, which he said are higher on average. Alberta plans to ensure funding will be aligned with Manitoba’s, which is the highest in the country.

“The one change that we specifically made was on income support. In Manitoba, it’s up to $115,000, and we made the change to $120,000 in Alberta,” Horner said.

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Under the new legislation, all injured parties who are involved in auto accidents — including those at fault, cyclists and pedestrians — will have access to medical and rehabilitation benefits. Benefits would include medical care, rehabilitation and daily living assistance.

If passed, the province would establish the Alberta Automobile Care-first Tribunal. Albertans who disagree with a decision made by the insurer can appeal the decision to the tribunal. Horner said specific details on the process of how to appeal and how soon the decisions will be made are still being worked out.

Alberta NDP Leader Naheed Nenshi said Albertans are not getting the best benefits as the province claims, pointing to insurance premiums, which increased to 7.5 per cent in January and will go up by another 7.5 per cent in 2026.

“Every single person who’s in an accident would benefit from timely, quick medical treatment that’s paid for. But that will not occur under the government’s new rules. It will increase profits for insurance companies. It will remove people’s freedoms and rights,” Nenshi said.

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ctran@postmedia.com

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