The Alberta government has released draft regulations outlining compensation rules for its proposed no-fault auto insurance system, including a detailed payout schedule that assigns fixed dollar values to specific injuries.
The draft Permanent Injury Regulation, introduced just before the Thanksgiving weekend, proposes standardized compensation amounts for permanent injuries sustained in vehicle collisions. Under the schedule, compensation would be determined by a preset chart rather than assessed through the courts.
According to the document, compensation amounts range from $945 for the loss of colour vision to $13,234 for the loss of a pregnancy under 20 weeks, and between $37,811 and $66,169 for a moderate traumatic brain injury. A partial hand amputation would be valued at $41,592, while the loss of one eye would result in a $56,717 payout.
The Alberta Civil Trial Lawyers Association (ACTLA) said the proposed framework undervalues injuries and removes the ability of Albertans to have their circumstances considered individually. The group said the schedule “puts a price tag on the human body” and questioned the fairness of having insurers determine whether an injury qualifies as permanent under the regulation.
Under the no-fault model, drivers and passengers injured in collisions would no longer be able to pursue lawsuits for pain and suffering. Instead, compensation would be paid according to a benefits schedule, with insurers responsible for determining eligibility.
Critics also pointed to earlier government and industry statements acknowledging that the no-fault model may not deliver the $400 in annual premium savings that were originally promised when the system was introduced through Bill 47 in 2025.
The proposed changes are part of Alberta’s plan to implement its new auto insurance system by January 1, 2027. The government has said the goal of the no-fault model is to streamline claims handling and control premium growth, but the current draft regulations have renewed debate over whether the system adequately balances cost management with fair compensation for injured Albertans.
The draft regulations remain open for feedback, allowing time for revisions before the legislation takes effect.
