-- Alberta is moving toward a no-fault insurance system.
On May 13, members of Alberta’s Legislative Assembly passed Bill 47 in a 42-15 vote following its third and final reading. As a result, the provincial auto insurance system will transition toward a no-fault model beginning in 2027. The new system is known as the Care-First model.
The move is meant to streamline the auto insurance claims process, reduce litigation and enhance access to benefits people injured in collisions. Under the new system, insurance providers will be required to compensate people for injuries sustained in accidents, regardless of fault. The new law also provides a clear outline for the benefits injured Albertans can expect to receive from insurers.
Opponents of the bill expressed concern that they had not had enough time to evaluate the bill or understand its full impact.
“I’m still not sure I totally buy how it’s going to reduce insurance rates,” Heather Sweet, the NDP MLA for Edmonton-Manning said. “My worry is that it will actually inflate services for those people who have been impacted.”
The decision was welcomed by the Insurance Bureau of Canada. In a press release, Aaron Sutherland, vice-president of its Pacific and Western region, said "Alberta’s insurers congratulate the government on the passage of Bill 47 and the Care-First model, which represents the most ambitious transformation of the auto insurance system in provincial history."
Sutherland went on to warn legislators that there was more work to be done in order to prepare the province for the transition. "The government must now move urgently to finalize regulatory details of the new model to have it in place by January 2027."
He also emphasized the importance of minimizing litigation to ensure the system's success.
"The evidence is clear – the more lawyers [who] are involved in the auto insurance system, the less money drivers will save."
Not all professional organizations were as pleased. The Canadian Bar Association’s Alberta branch, which represents lawyers, has raised concerns regarding the new legislation’s impact on victims.
“The CBA Alberta Branch is concerned that the new legislation may limit the ability of injured individuals to seek fair compensation through the courts,” the association wrote in a press release.
The new system is unlikely to cause much controversy among members of Alberta’s collision repair industry. Under it, repairers will contact driver’s insurance providers in all cases. In other provinces that have adopted no-fault systems, this has expedited the claims process.
Saskatchewan was the first province in Canada to introduce no-fault auto insurance with the enactment of the Automobile Accident Insurance Act in 1946.
Manitoba established its no-fault auto insurance system in 1971 through the creation of Manitoba Public Insurance, a non-profit Crown corporation.
In 1978, Quebec implemented a pure no-fault auto insurance model managed by the Société de l'assurance automobile du Québec.
Ontario adopted a no-fault auto insurance system in 1990 while British Columbia made the transition in 2022.
