Tag: no fault

Alberta is quickly transitioning to a no-fault auto insurance system.   This means that in most auto accident scenarios, victims will receive compensation for injuries and losses from their own insurance company, regardless of who was at fault. The no-fault auto insurance system is thought to streamline the claim process and potentially lower costs by reducing litigation.  Instead, what always happens is that the level of care reduces as claims get stuck in the bureaucracy of the insurance company, and valid treatments for injuries are denied.  Injured individuals are left without recourse and have no protection.  Your personal injury lawyer, Moustarah & Company, helps get you 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 is expected to be fully implemented by January 2027. 

Current System (At-Fault):
    • Compensation from the at fault driver’s insurance company.
    • In Alberta’s current system, if you’re injured in a car accident due to another driver’s negligence, you can sue them for damages, including pain and suffering, lost income, and medical expenses. You can hire a personal injury lawyer to protect your rights and give legal guidance.
No-Fault System (Care-First):
  • Compensation from your own insurer:
    Under the no-fault system, your own insurance company will primarily be responsible for covering your medical expenses, rehabilitation costs, and other losses, regardless of who caused the accident.   Your own insurance company will decide what medical treatments they want to pay for, and how much you should be compensated.

  • There is no penalty for bad drivers
  • 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 care:
    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

    Potential for lower premiums:
    While not guaranteed, one of the goals of the no-fault system is to potentially lower auto insurance premiums for Albertans by reducing legal costs and simplifying claims.  No other province that has implemented a no-fault system has seen a reduction of auto insurance premiums.

    Benefits determined by insurers:
    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.
Key Considerations:
Limited legal recourse:
While the no-fault system aims to provide faster access to care, some critics argue that it may limit the ability of individuals to seek full compensation for pain and suffering, especially in cases of serious injuries.  And there will be no personal injury lawyers giving guidance and helping injured individuals navigate the complicated process.  In addition, the insurance company will decide which medical treatments they will pay for, and you have no ability to hold them accountable.