Tag: no fault insurance is no good

No-fault auto insurance is fraught with problems and limitations.  The auto insurance companies will make more profit while individuals in Alberta will  be left struggling.

Alberta is transitioning to a no-fault auto insurance system.   The no-fault auto insurance system is being promoted as streamlining the claim process and potentially lowering auto insurance.  Instead, the level of care will reduce as claims get stuck in the bureaucracy of the insurance company, and valid treatments for injuries are denied.    There will be more forms and a much more complicated process when you are hurt and in need of medical treatments.  Injured individuals will be left without recourse and they will have no protection.  Moustarah & Company, your personal injury lawyer, currently helps you receive treatment and heal from your injuries, and then fights on your behalf to ensure that you receive fair and just compensation for your injuries. The shift in Alberta to no-fault insurance will leave you without guidance and without legal recourse. 

No-Fault System (Care-First) only allows for compensation from your own insurer.  Under the no-fault system, your own insurance company will decide what medical treatments they want to pay for, and how much you should be compensated.  Your own insurance company will be responsible for covering your medical expenses, rehabilitation costs, and other losses, regardless of who caused the accident.   Bad drivers and the at-fault drivers are no longer held responsible for their actions.
The specific benefits and compensation amounts will be determined by the insurance companies, based on government regulations.   Your insurance company will decide how much money they are willing to give you.
  • Limited right to sue:

    In most cases, you will no longer be able to sue the at-fault driver for pain and suffering. There are a few and very limited exceptions, such as if the at-fault driver is convicted of a criminal offence like impaired driving. 

    Focus on insurance company profits:

    The new system is intended to provide quicker access to benefits for injuries and rehabilitation, aiming to reduce the number of lawsuits and streamline the claims process.   Unfortunately, the new system will result in more forms for injured individuals to fill out.  More complicated process to be approved for medical treatments.  And less protection for victims of car accidents in Alberta.  The insurance companies will continue to raise premiums, especially on good drivers.  And the insurance company will now control and decide how much they pay out.  More money in, and less money out equals huge profits for auto insurance companies in Alberta.

Limited legal recourse:
The no-fault system limits the ability of individuals to seek full compensation for pain and suffering, especially in cases of serious injuries.  the insurance company will decide which medical treatments they will pay for, and you have no ability to hold them accountable.   In addition, there will be no personal injury lawyers giving guidance and helping injured individuals navigate the complicated process.