Alberta’s Auto Insurance Reform Bill Faces Criticism from Legal Community
The Alberta branch of the Canadian Bar Association (CBA) has expressed disappointment over the passing of a bill that will reform the province’s auto insurance system. The legislation, introduced in late March, aims to establish Alberta as the first province in Canada to implement a privately delivered ‘care-first’ auto insurance model. This new system will restrict Albertans’ ability to pursue legal action except in certain circumstances, prompting criticism from the legal community.
Robert Bassett, president of CBA Alberta, stated that the bill’s passage without broader public consultation or significant input from legal experts is concerning. “This is a fundamental change to how care and compensation are delivered,” Bassett said, emphasizing that Albertans value fairness, accountability, and access to justice. The CBA believes these concerns should have been central to the legislative process.
In response to the criticism, the office of the provincial minister of finance argued that the new system will penalize at-fault drivers with higher premiums. It also claimed that accident victims will receive “the best medical benefits of any insurance system in Canada” while paying lower premiums once the system is fully implemented in 2027.
Mark McCourt, an auto injury lawyer, has publicly criticized the bill’s restrictions on litigation. He warned that premiums will increase significantly over the next two years, while injured Albertans’ ability to sue at-fault drivers will be largely eliminated. Under the new legislation, injured parties will only be able to sue for pain and suffering if the at-fault driver has been convicted of an offense under the Criminal Code or Traffic Safety Act. Those who incur out-of-pocket expenses exceeding their policy benefits may also seek legal recourse if the at-fault driver faces charges.
“While I recognize that this bill is open for improvement, regulations can be passed to afford some semblance of fairness for injured Albertans. The reality is that a government willing to pass a bill as unpopular, unfair, and unnecessary as this one is highly unlikely to make significant changes,” McCourt said.
The new auto insurance system is set to take effect pending royal assent, marking a significant change in how Albertans will handle auto insurance claims and litigation in the future.
