Automobile Insurance Act

Summary#

• Bill 47 would replace Alberta’s current auto injury system with a “care‑first” no‑fault model starting for crashes on or after January 1, 2027.

• After a crash, your own insurer would pay set benefits for health care, rehab, income replacement, and other supports, no matter who caused the collision.

• Most lawsuits against other drivers for injury would be barred. Limited lawsuits would still be allowed in specific cases and for certain losses above set caps.

• Key changes:

  • Most injury lawsuits are blocked; limited suits allowed for pain and suffering against drivers convicted of serious offences, and against certain third parties (like automakers, bars, social hosts, and municipalities). You may also sue for money losses that exceed set benefit limits.
  • Standard benefits include health care and rehab, equipment and medications, travel and lodging for treatment, daily living help, child or dependent care, family business replacement help, income replacement, caregiver benefits, permanent impairment benefits, and death, funeral, and grief counselling benefits.
  • Insurers must offer an optional policy for “excess” compensation above the standard amounts, and must also offer a base policy with only the standard amounts.
  • Benefits can stop, be reduced, or be refused in set situations (for example, if you can return to work, at age‑related limits, after certain convictions, or for fraud).
  • A new Alberta Automobile Care‑first Tribunal would hear appeals of insurer decisions. Tribunal decisions are final, with limited court review.
  • Many details (benefit amounts, “catastrophic” injury rules, caps, and annual adjustments) will be set by regulation.

What it means for you#

• Drivers and passengers

  • After a crash in Canada or the U.S., you claim with your own insurer. You do not need to prove who was at fault to get benefits.
  • You generally cannot sue another driver for your injuries. You can sue for pain and suffering only if the at‑fault driver is convicted of listed serious Criminal Code or traffic offences, or sue certain third parties (like automakers, bars, social hosts, or a municipality) if they contributed to the harm.
  • You can sue for money losses (like income, treatment, travel, daily living help) only when your loss is higher than the set maximums the plan will pay.
  • Insurers must help you understand and file your claim. You must share requested information and may need to attend insurer‑paid medical exams.
  • If payments are late, interest is added. Some benefits cannot be seized by creditors (income replacement and retirement benefits can be treated like wages).

• Injured workers (full‑time, part‑time, temporary)

  • Income replacement is available if you cannot keep working because of the crash. It can also apply if you miss Employment Insurance benefits you would have received.
  • If you were about to move into better‑paying work, benefits may be based on that higher expected job.
  • If you go back to a lower‑paying job due to your injury, income replacement is reduced.
  • For most injuries, income replacement ends when you can work again, or on the first June 30 after the later of turning 65 or five years after benefits began.

• Non‑earners, students, and minors

  • Non‑earners can get income replacement if the injury keeps them from work they would likely have taken.
  • Students and minors can get a loss‑of‑studies benefit while they cannot start or continue school full‑time due to the injury. They may also get income replacement when they cannot work during or after studies because of the injury.

• Caregivers

  • If your main unpaid work is caring for a child under 16 or a person who cannot work, a caregiver benefit is available if you cannot continue that care due to the injury.

• Seniors

  • If you are 65 or older and not working at the time of the crash, you are not eligible for income replacement or retirement income benefits unless you had a reasonable expectation of employment (such as a written job offer or ongoing seasonal work).

• Families after a death

  • Spouses or adult interdependent partners, dependants, and in some cases children or parents can receive death benefits.
  • Funeral and interment costs and grief counselling can be reimbursed up to set maximums.

• Health care and daily life

  • The plan pays for prescribed health services, equipment, medications, and rehab, plus travel and lodging for treatment when needed.
  • Daily living help and child/dependent care can be covered when you cannot manage these on your own due to the injury.
  • If an independent medical assessment says you have reached maximum recovery, payment for treatments aimed at improvement can stop. Long‑term needs can still be covered.

• Workers’ Compensation

  • If your crash injury is covered by the Workers’ Compensation Act, you generally cannot claim under this Act for the same injury.

• Businesses and others

  • Auto makers, parts makers, auto sellers, garages, liquor license holders (bars), social hosts, and municipalities can be sued in limited cases for pain and suffering and for certain money losses above plan caps if their actions contributed to the harm.

Expenses#

• No publicly available information.

Proponents' View#

• Gets help to people faster by removing most lawsuits and paying benefits right away, regardless of fault.
• Cuts legal and administrative costs tied to court fights; money goes to care, rehab, and income support instead.
• Provides clear, consistent benefits for all crash victims, with annual updates to amounts.
• Keeps strong accountability for serious wrongdoing: people convicted of listed offences can still be sued for pain and suffering, and third parties (like automakers or bars) can be held to account.
• Creates a dedicated tribunal so people can appeal insurer decisions without going to court.
• Allows drivers to buy extra “excess” coverage if they want higher protection.

Opponents' View#

• Removes most people’s right to sue for full damages, including pain and suffering, even when another driver caused the crash.
• Caps on benefits and “excess only” lawsuits may under‑compensate high earners or people with large ongoing costs.
• Lets insurers rely on their medical exams to stop treatment aimed at further improvement once “maximum recovery” is reached.
• Many key rules (benefit amounts, definitions, reductions) are left to regulations, making the real impact unclear until later.
• Some groups face limits or exclusions, such as people 65+ who were not working, or people whose benefits can be reduced or refused after certain convictions.
• Complex categories (workers, non‑earners, students, caregivers) and election rules may be hard for injured people to navigate.