Alberta’s legislation to reform the auto insurance system is set to take effect pending royal assent, though legal professionals have expressed concerns about limits on litigation rights under the new framework, The Sherwood Part News reported.
Introduced in late March, the bill aims to establish Alberta as the first province in Canada to implement a privately delivered “care-first” auto insurance model. The system would restrict Albertans’ ability to pursue legal action, except in certain specified circumstances, prompting criticism from the legal community.
The Alberta branch of the Canadian Bar Association (CBA) issued a statement Wednesday expressing disappointment that the bill was passed without broader public consultation or significant input from legal experts.
“This is a fundamental change to how care and compensation are delivered,” said Robert Bassett, president of CBA Alberta. He added that Albertans value fairness, accountability, and access to justice, concerns that he said should have been central to the legislative process.
In response, the office of the provincial minister of finance stated that the new system would penalize at-fault drivers with higher premiums. It also emphasized that accident victims would 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 and voiced disappointment that it passed without amendments. He warned that premiums will increase significantly over the next two years, while injured Albertans’ ability to pursue injury claims against at-fault drivers will be largely eliminated.
Under the legislation, injured parties would be able to sue at-fault drivers for pain and suffering only if the driver has been convicted of an offence 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 a government that’s willing to pass a bill as unpopular, unfair and unnecessary as this one is highly unlikely,” said McCourt.
