Bill 47: The Automobile Insurance Act, brings core changes to Alberta’s current auto insurance system. It seeks to establish a framework where Albertans injured in vehicle collisions will have improved access to health and medical benefits. The Automobile Insurance Act will introduce some of the following changes:
- Establish the benefits 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 for reasonable and necessary medical, rehabilitation, and other benefits.
- Entitle Albertans who are unable to continue their employment, are denied Employment Insurance Actbenefits, or are unable to complete their educational studies an income replacement benefit.
- Entitle Albertans a permanent impairment benefit if they sustain a permanent impairment because of an accident.
- 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.
The Act will also require insurers to pay compensation in accordance with the regulations and it establishes rules on how an insurer may recover costs if the claimant was not entitled to benefits, or where benefits were overpaid.
On March 24, 2025, Bill 47 passed its first reading. If it receives royal assent, these changes will be implemented by the fall of 2025. These amendments are in conjunction with Alberta’s privately delivered care-first system, which will start on January 1, 2027. If passed, Bill 47 will impact counsel practicing in insurance law. We will continue to monitor its progress and provide updates on the LESA Blog. For more information, read the Government of Alberta’s official press release here.
