WHO WILL COMPENSATE ME FOR MY DAMAGES, UNDER THE NEW ALBERTA AUTO INSURANCE SCHEME?

Under the new Alberta auto insurance legislation, which introduced significant reforms to the previous tort-based system, the framework for compensating injured parties has shifted toward a no-fault system.

Key points:

No Tort System:** The traditional tort-based system, where an injured party sues the at-fault driver for damages, has been largely replaced or significantly limited.

No-Fault Benefits:** Instead of pursuing damages through litigation, injured parties now primarily rely on the Alberta Automobile Insurance Plan (AIP), which provides no-fault benefits. These benefits cover medical expenses, rehabilitation, income replacement, and other related costs regardless of fault.

The Role of the Insurance System:** The Alberta government’s auto insurance plan now acts as the primary source of compensation for injuries resulting from auto accidents. This means that the injured party does not need to establish fault to receive benefits.

Who Pays for Damages?** Since the tort system is no longer available, damages for pain and suffering or other non-economic losses are generally handled through the no-fault benefits scheme. However, there are some exceptions where a claimant can pursue a limited right to sue—for example, in cases of catastrophic injury or death, or if the injury was caused by an impaired driver, depending on specific legislative provisions.

In summary:

Your damages for injuries are primarily covered by the Alberta auto insurance plan’s no-fault benefits. You generally do not need to prove fault to receive compensation. If you seek compensation beyond the no-fault benefits (e.g., for pain and suffering), there may be limited circumstances under which you can sue the at-fault driver, but this is more restricted than under the previous tort system.

Note: Legislation can be complex and although subject to amendments, the status quo will still apply to your situation. Therefore, with these recent legislation and regulatory changes, speaking to seasoned professional cannot be overemphasized. At Osuji & Smith, our legal experts will walk you through it all so you can assess your situation and know your expectation when ‘life’ happens.

Author: Deborah Pearce