The Automobile Insurance Act has officially been passed, and it will bring major changes to Alberta’s auto-insurance system, and to insurance practice in Alberta.
The Act introduces a care-first automobile insurance system which will provide care and support for everyone injured in a collision, shifting the focus from court and litigation. In this, regardless of who is at fault in a collision, the Automobile Insurance Act will direct insurers to pay compensation benefits.
The Act sets out what insurers will need to reimburse or pay in reasonable and necessary medical expenses, rehabilitation support, and other benefits. It entitles an income replacement benefit to Albertans who are unable to continue their employment or complete their education studies, due to injury. It also establishes the rules on how an insurer may recover costs if the claimant is not entitled to benefits, or if the benefits are overpaid.
The Automobile Insurance Act is now of full force and effect. Further regulation changes are projected to be introduced in the fall of 2025, and the first privately delivered care-first system will start in January 1, 2027. This development will impact insurance practice in Alberta. For a more detailed overview on the changes introduced under the Automobile Insurance Act, read the official announcement here.
