Finance Minister Nate Horner details the proposed changes under the Automobile Insurance Act. (Photo: Government of Alberta)

By David Opinko

Alberta bill proposes ‘care-first’ auto insurance system

Mar 25, 2025 | 8:58 AM

The Government of Alberta is promising “better, faster, cheaper auto insurance.”

The Automobile Insurance Act has been introduced into the legislature.

Finance Minister Nate Horner says the changes would give Alberta drivers the “best benefits of any system in Canada” if they need medical care and rehabilitation following a collision.

“Care-first is a term we use intentionally, because Albertans who are injured in a collision truly need their care and well-being to come first. Our goal is to build a stronger auto insurance system to better protect Albertans and their pocketbook,” says Horner.

Albertans who are injured in a collision could receive income support payments and retirement benefits, potentially for life, depending on the severity of their injuries. Those who are unable to work or attend school because of their injuries could be eligible for these benefits.

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Criteria would be established to provide a permanent impairment benefit for Albertans who are permanently injuries in a collision, or a death benefit if they are killed.

When Bill 47 was first talked about last fall, Premier Danielle Smith said drivers could save up to $400 per year on their car insurance by cutting down on litigation costs.

If passed, Bill 47, the Automobile Insurance Act, will:

• Establish when benefits would be payable to Albertans who are injured or die from a collision
• Direct insurers to pay compensation benefits regardless of who is at fault for the accident
• Set out what insurers would need to pay or reimburse Albertans for reasonable and necessary medical, rehabilitation and other benefits
  • These would include prescribed health care services, equipment, medication and supplies, among other prescribed services.
  • The legislation would apply as long as the services are needed to recover from injuries caused by the accident.
• Entitle Albertans who are unable to continue their employment, are denied Employment Insurance Act benefits, or are unable to complete their educational studies, an income replacement benefit
• Entitle Albertans who sustain a permanent impairment because of an accident a permanent impairment benefit
  • The benefit would be subject to specific conditions. Insurers would need to determine the entitlement to administer this benefit.
• Establish that in the event of a death from an accident, the spouse or adult partner, or other dependents of the deceased, would be entitled to a death benefit
  • Funeral, interment and grief counselling services may be reimbursed.
• Outline how Albertans would make a benefits claim
  • Proposed legislation would establish the requirement that insurers must assist their clients, and would set out the independent medical examination process rules to make claims.
• Require insurers to pay compensation in accordance with the regulations
  • Proposed legislation would describe how benefits would be paid, including annual indexation of benefit amounts and rules on the payment of benefits to minors and dependents.
• Establish the rules on how an insurer may recover costs if the claimant was not entitled to benefits, or where benefits were overpaid
• Outline how the act would work with other programs, including the Workers Compensation Act
• Require insurers to notify Albertans of decisions that would impact their benefits in writing
  • Proposed legislation would establish a process to require an internal review of that decision, if requested by the claimant.
• Restrict, in most cases, the ability to sue an at-fault driver for injuries in an accident
  • Exceptions to litigation would include if the at-fault driver is convicted of certain driving offenses under the Criminal Code or Traffic Safety Act (to be determined in regulations), or if losses exceed the amounts provided by the insurance policy, such as lost income.
• Establish the Alberta Automobile Care-first Tribunal through which Albertans can dispute care and treatment decisions made by their insurance company
• Include administrative elements, such as the delegation of the minister’s authority, role of the Superintendent of Insurance and the ability of its office to set guidelines, develop forms and establish fees, among others

If the bill were to pass, industry partners would take the next two years to implement the changes.

The new proposed auto insurance system would take effect January 1, 2027.

READ MORE: Alberta Gov’t launches info site on upcoming auto insurance changes

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