Abstract
This paper reviews the changes established by the new legislation, new compensation limits, new procedures for assessing claims and managing treatment and the anticipated impact to Albertans who are injured in motor vehicle accidents.
Table of Contents
INTRODUCTION……………………………………………………...2
SUMMARY OF KEY CHANGES………………………………….…2
MEDICAL AND TREATMENT BENEFITS…………………………3
PERMANENT IMPAIRMENT BENEFITS………………………….4
INCOME REPLACEMENT BENEFITS……………………………..5
- Full-Time Earners……………………………………………6
- Part-Time and Non-Earners……………………………….6
- Determined Employment………………………………..…6
- Students and Minors………………………………………...7
- Caregiver Benefits……………………………………………7
- Death Benefits………………………………………………...7
- Calculations & Adjustments………………………………8
RESOLUTION OF DISPUTES………………………………………..8
AMENDED REGULATIONS…………………………………………..9
IMPACT OF THE CARE-FIRST SYSTEM………………………….10
INTRODUCTION
On March 24, 2025, the Government of Alberta (the “Province”) unveiled Bill 47, which proposed sweeping changes to the Automobile Insurance Act, SA 2025, c A-47 (the “Act”). Bill 47 received royal assent on May 15, 2025, and the new legislation is currently set to take effect on January 1, 2027.
Amendments to the existing regulations, as well as new regulations, under the Act have also been released, some of which are already in effect and some of which are set to come into effect on December 31, 2026.
The new Act and regulations will establish a no-fault system of automobile insurance, dubbed by the Province as the “Care-first” system. Similar to the system established by Alberta’s Workers’ Compensation Act, RSA 2000, c W-15, or the no fault regime governed by ICBC in British Columbia, the care-first system will provide benefits to individuals who sustain bodily injury or death regardless of who is at fault for the accident. The system will eliminate lawsuits for motor vehicle accidents, except in extremely limited circumstances, and will instead establish an Automobile Care-First Tribunal (the “Tribunal”) which will hear any disputes regarding the issuance of benefits.[1]
This said, it is possible that the Province may reverse course on its decision to implement the new legislation. At the UCP AGM on November 29, 2025, the UCP members overwhelmingly voted to repeal the proposed no-fault legislation in favour of the existing fault-based tort system which preserves the right to sue and leaves the burden of accidents on the wrongdoer rather than the victim. The AGM vote is non-binding but reflects a strong view that this is not a program that is supported by the UCP base.
This paper is a summary of what we understand about the legislation as it stands and how it is likely to play out. For more information on why this system will reduce protection for injured parties and is unlikely to reduce insurance premiums, we recommend the various LinkedIn articles posted by lawyer Dana Nielsen in Calgary or the economic analysis of well-known Canadian economist, Jack Mintz, also available on LinkedIn
SUMMARY OF KEY CHANGES
Section B: Currently, accident benefits are set out under Section B of Alberta’s standard owner’s automobile policy.[2] Medical and rehabilitation benefits are limited to $50,000.00 and must be incurred within 2 years of the accident. Under the care-first system, there will be no monetary or time limits, but benefits will be subject to certain conditions such as a requirement that claimants attend any medical and rehabilitative treatment deemed to be necessary for the claimant’s recovery. Claimants with “serious” or “catastrophic” injuries will also have access to additional rehabilitation and Activities of Daily Living assistance benefits. This system will replace both Section B and litigated claims for damages.
Income replacement benefits are currently offered up to the lesser of $600 per week or 80% of the claimant’s average gross earnings, for a maximum of 2 years post-accident. Claimants may additionally sue the at-fault party for the shortfall in order to recover 100% of their loss under the current tort system. Under the care-first system, injured parties will not be able to sue for 100% of their loss. Instead, income replacement will be based on 90% of the claimant’s net income up to a maximum annual gross income of $125,000.00 as of 2025, payable until the age of 65. (Insurers may also provide the option to purchase additional income-replacement coverage or other benefits but details are not available on that-presumably higher income earners will want to obtain excess LTD insurance to protect themselves in the event they are injured by a negligent driver as they will no longer have the right to sue for that loss).
The care-first system will provide a new permanent impairment benefit for claimants suffering from permanent physical or mental injuries. The amount payable will be based on the body part(s) injured and the severity of impairment – a so called “meat chart”.
The benefit amounts under the care-first system will be indexed annually for inflation.
As stated, disputes regarding the payment of benefits will be heard by a Tribunal and tort claims will largely be extinguished, except in extremely limited circumstances. The victim will be left to deal with the consequences inside the constraints of a limited compensation system. The wrongdoers will face little to no consequence, thus removing a major incentive to drive attentively.
By way of a quick example of how this may play out, the goal of the current tort system (developed over hundreds of years of common law) is to put an injured party in the same financial position they would have been in but for the accident. This will no longer be the case under Alberta’s No Fault System.
Example: a 26-year-old straight-A medical student with a bright and productive career ahead of them who is catastrophically injured under the currently existing tort system would be able to sue the wrongdoer and potentially recover millions of dollars for future lost income from the party that caused the injury. Under the care-first program, that same catastrophically injured person will likely lose the right to sue the wrongdoer and will be limited a mere fraction (25% or less) of what their future earnings otherwise would have been. The wrongdoer who ended the claimant’s career and made their years of schooling meaningless will not have to pay a penny.
MEDICAL AND TREATMENT BENEFITS
The care-first system will reimburse claimants for “reasonable and necessary expenses” incurred with respect to the following, provided they facilitate the claimant’s recovery or continue to be necessary after maximum medical recovery is reached:[3]
- Health care services, equipment, medication, and supplies;
- Prescribed rehabilitative activities;
- Transportation, lodging, and other related expenses;
- Daily living expenses if assistance is required as a result of the claimant’s bodily injuries;
- Cost of care for any dependents of the claimant;
- Cost of having the claimant’s duties in a family enterprise performed by another person for up to 180 days post-accident, provided the claimant is going without remuneration; and
- Other expenses as per regulation. The draft Benefits, Treatment and Care Regulation[4] indicates that these will likely include things like recreation expenses for claimants with serious impairments or catastrophic injuries, telecommunication expenses while hospitalized, expenses to appoint a person to manage the claimant’s affairs if they are unable to do so, and some loss of income while attending a medical examination requested by the insurer/government body managing the system
Medical and rehabilitation benefits will be provided in one of two ways:
- If the claimant’s injuries fall within a “program of care”, defined as a “structured and evidence-based program for the treatment of bodily injury”, then benefits will be pre-approved as long as a claim is made within 12 weeks of the accident. Insurer approval will be required if the claim is made more than 12 weeks post-accident.
- If the claimant’s injuries do not fall within a program of care or have not resolved on the completion of a program of care, benefits will be provided according to a treatment plan developed by a health care practitioner with approval from the insurer.
Non-compliance with the program of care and/or the treatment plan may result in the suspension or termination of benefits[5]. Any benefits withheld during a suspension period will not be recoverable.
The claimant will be required to undergo a comprehensive medical assessment if the claimant’s injuries are “not following the expected course of recovery” or if such an assessment is requested by their treating health care provider. Based on the assessment report, the insurer may continue providing the current benefits; adopt a modified treatment plan, if recommended; or terminate benefits.
Any assistance required for activities of daily living will be determined using an assessment tool set out in the Schedule attached to the Benefits, Treatment and Care Regulation. Particulars regarding the use of this tool will be established in guidelines that are still in development.
Currently, the following limits are expected to be imposed on the benefits provided under this part of the Act: [6]
a. No limit will be imposed on medical and rehabilitation benefits;
b. Personal care assistance will be limited to $5,671/month for non-catastrophic injuries, and $6,781/month for catastrophic injuries (brain damage, quadriplegia, etc.);
c. Specific limits will be imposed on each meal of the day, up to a daily maximum of $56.89;
d. Critical care attendance will be limited to $5,615.00; and
e. Clothing allowance will be limited to $1,305.00.
PERMANENT IMPAIRMENT BENEFITS
The no fault system will establish a permanent impairment benefit[7], the administration of which is set out in the draft Permanent Impairment Regulation.[8]
This lump sum benefit is meant to replace the amount that is currently awarded in general damages for such an impairment, and will be calculated once all of the claimant’s injuries have stabilized and are unlikely to change significantly with more treatment.
Claimants who have suffered a catastrophic injury, including quad/paraplegia; amputations; and/or significant functional alteration of the brain, loss of vision, psychiatric condition, or burns, will be deemed to have a permanent impairment.
The permanent impairment benefit will be calculated using a formula based on the severity of the injury (ie. non-catastrophic versus catastrophic), percentages assigned to various body parts, and an enhancement component meant to account for the combined effect of multiple impairments, which is often greater than adding them individually.
The permanent impairment benefit will be limited to a range of $944.00 to $189,055.00 for non-catastrophic injuries, and $298,520.00 for catastrophic injuries.[9] This is a fraction of what is currently available to injured party when suing a wrongdoer at common law.
In addition, the draft Exclusions and Tort Bar Exceptions Regulation[10]states that an insurer may reduce, suspend, or terminate a claimant’s permanent impairment benefit if the claimant:
- Is charged or convicted of certain prescribed offences under the Criminal Code, RSC 1985, c C-46, and Traffic Safety Act, RSA 2000, c T-6, relating to conversion, murder, manslaughter, criminal negligence causing bodily harm or death, failing to stop for a peace officer, and driving under the influence; or
- Fails to: (1) provide the insurer with requested information, or (2) notify the insurer of a change in circumstances which may impact the claimant’s entitlement to compensation or the amount payable.
Section (b) is vague but will likely lead to permanently injured people losing their benefits because they missed filing a form or replying to missed letter or omitting to advise the insurer of something that they did not think was important. The injured person will then have the onus to appeal to the Board at their own costs. It is anticipated that this will create a large bureaucratic risk for seriously injured individuals and their families.
INCOME REPLACEMENT BENEFITS
The care-first system will provide capped income replacement and other monetary benefits to:
a. Full-time earners;
b. Temporary and part-time earners;
c. Students and minors (for both loss of studies and loss of income); and
d. Individuals whose main occupation is caring for others without remuneration,
where said individuals are unable to continue with their occupation and/or are deprived of benefits under the Employment Insurance Act, SC 1996, c 23, that they would have otherwise been entitled to. [11]
The draft Income Replacement and Monetary Benefits Regulation [12]establishes a complicated framework in which automobile insurers will be the last payor behind other income replacement plans or schemes, except for Assured Income for the Severely Handicapped (AISH) recipients who are receiving AISH benefits because of their bodily injuries. In this case, the automobile insurers will be the first payor.
Income replacement benefits will be calculated at 90% of the claimant’s net income up to a maximum yearly amount which will be based on Alberta’s industrial average wage as published by Statistics Canada, and which will be adjusted annually for inflation. The limit is currently set at $125,000.00. [13] Insurers may, at their discretion, offer policies that cover any shortfall for higher income earners but whether that will exist and what it will cost is unclear at present.
Once a claimant reaches the age of 65, their income replacement benefit will be converted into a retirement income benefit unless they are no longer employed at that time and did not have a reasonable expectation of employment or retirement income, in which case, the benefit will be terminated. [14] Retirement income benefits will be calculated at 70% of the claimant’s net income, less any other disability benefits and/or pension income, including CPP, OAS, or employer-based pensions.
Income replacement and retirement income benefits will commence after a 7-day waiting period has elapsed following the accident, and must be paid every 14 days thereafter.
Income replacement benefits will also be available if the claimant suffers a relapse of their bodily injuries within a prescribed period of time, resulting in the claimant becoming eligible for said benefits.
Finally, temporary income replacement benefits will be provided where a claimant regains the ability to hold employment but is unable to immediately find a new job.
i. Full-Time Earners
For full-time earners, the income replacement benefit will be determined using the claimant’s Gross Yearly Employment Income (“GYEI”), which will be calculated based on income earned in the pay period in which the accident occurred. GYEI may be adjusted if the prescribed calculation method yields a substantially inaccurate result.
For self-employed full-time earners, this benefit will be determined using the greater of their actual GYEI or the GYEI in the National Occupational Classification table for the claimant’s major occupational group. If the claimant holds multiple jobs at the time of the accident, the income replacement benefit will be determined using the GYEI from all of the jobs the claimant is unable to continue.
ii. Part-Time and Non-Earners
Temporary, part-time, and non-earners will receive income replacement benefits based on the GYEI they earned or would have earned for the first 180 days after the accident. After 180 days, this benefit will be determined using the greater of the GYEI from the first 180 days post-accident or the GYEI for the claimant’s determined employment.
A claimant’s employment will be determined based on the employment held by the claimant at the time of the accident and/or in the 5 years prior to the accident; the claimant’s education, training, work experience, and physical, mental, and intellectual capabilities immediately prior to the accident; and the claimant’s earnings in the past 5 years.
Only one determined employment may be used, even if the claimant held or would have held multiple jobs. After 180 days, the income replacement benefit may be adjusted based on past work history, and may not equate to full-time work.
iii. Determined Employment
In addition to the “required” employment determination set out above, insurers may, at their discretion, determine a claimant’s employment based on their residual capacity if 2 years have elapsed since the accident and the claimant remains unable to hold their pre-accident or mandatorily determined employment, but is able to hold other employment on a full or part-time basis. In this case, benefits may be reduced by the amount of the net income the claimant would earn from their determined employment.
This is not to be confused with the income replacement benefits discussed in s.51 of the Act and s.18 of the Income Replacement and Monetary Benefits Regulation, which state that where, as a result of their injuries, a claimant earns lower GYEI than that used by the insurer to calculate their income replacement benefit, the benefit payable must be reduced by 75% of the net income earned by the claimant.
iv. Students and Minors
If the claimant is a student who misses a semester or school year as a result of their bodily injuries, they will be entitled to a loss of studies benefit which will be the greater of the tuition fee for the courses or a lump sum established by the Minister. The lump sums are currently anticipated to be a maximum of $6,427.00 for kindergarten to Grade 8; $11,910.00 for Grades 9 to 12; and $23,824.00 for post-secondary studies. [15]
Students working while in school may receive both loss of studies and income replacement benefits, though not for the same period of time. Income replacement benefits will be calculated using the GYEI the student earned or would have earned.
Students who are unable to hold employment after their schooling is complete will be eligible for income replacement benefits calculated using the industrial average wage. Insurers may also determine employment for students who retain some residual capacity to hold employment, which income would be deducted from their loss of income benefit.
Benefits for minors largely mirror the benefits for students.
v. Caregiver Benefits
Caregiver benefits will be provided for part-time and non-earners whose main occupation is the care of others without remuneration. The caregiver and care recipient must reside together. If the claimant’s injuries remain ongoing 180 days after the accident, the claimant must choose to receive either the income replacement benefit or the caregiver benefit. If the claimant does not elect, the insurer must pay the greater benefit. If the caregiver dies in an accident, the caregiver benefit will be payable to the care recipient. The maximum amount of caregiver benefits payable on a weekly basis will depend on the number of dependents. The Province’s supplemental bulletin establishes a range between $547.00 and $719.00/week.[16] By way of comparison to the current common law tort system: the no fault capped amount for caregivers allows for compensation that is less than minimum wage. Under the current tort system, the injured party can sue for the actual cost of an actual caregiver where that is required and need not choose between income replacement and a caregiver benefit-they can sue for 100% of both. Again, this seems to be an area where the victim and their family will be left with a significant shortfall under the proposed no fault system while the wrongdoer faces no consequence for the injuries they cause.
vi. Death Benefits
The Act sets out benefits for the spouse, adult interdependent partner, dependents, children, and/or parents of a deceased individual, including funeral, interment, and grief counselling expenses.[17] The Income Replacement and Monetary Benefits Regulation and a supplemental bulletin issued by the Province indicate that:
a. Funeral expenses will be paid to a maximum of $10,308.00-we note this amount is insufficient to cover the actual costs of a funeral in many cases;
b. Payments to the family will be paid within a prescribed range based on the deceased’s GYEI, the age and any disabilities of the deceased’s dependant(s), and/or the non-dependent status of any children or parents; and
c. Grief counselling expenses will be paid to a maximum of $4,310/person.[18]
vii. Calculations & Adjustments
Parts 4, 5, and 7 of the Income Replacement and Monetary Benefits Regulation establish the methods for calculating GYEI (gross yearly employment income), net income, and annual adjustments for inflation.
The draft Exclusions and Tort Bar Exceptions Regulation[19] states that an insurer may reduce, suspend, or terminate the claimant’s compensation if they have been convicted of the prescribed offences under the Criminal Code and Traffic Safety Act, or if they have failed to comply with the notice and provision of information requirements, as set out under the above section on Permanent Impairment Benefits. Under the present system, no such termination risk exists. It is not clear what offences will cause the victim of a motor vehicle accident to subsequently lose their benefits for an unrelated offence, missed form or bureaucratic error but this is a significant new risk for injured victims and their families.
Any reduction, suspension, or termination of benefits will result in the same reduction, suspension or termination of any excess compensation provided under a motor vehicle liability policy purchased by the claimant.
RESOLUTION OF DISPUTES
Part 4 of the Act provides that a Tribunal will be established to hear all matters relating to decisions made by insurers under the Act. The Tribunal will consist of individuals appointed by the Minister.[22]The Act states that the Minister may appoint people who meet the prescribed qualifications and eligibility requirements.[23]The Minister may designate one member of the Tribunal as chair and one or more members as vice-chair.[24]A vice-chair will have all the authority of the chair, subject to the general direction of the chair.[25]The members of the Tribunal may hold office for terms not exceeding five years in the case of the chair and vice-chairs, and three years in the case of other members.[26]Members may be appointed for additional terms, and shall be paid remuneration and expenses in accordance with the regulations.[27]
The Tribunal will have broad powers, and the following non-exhaustive description will summarize these powers:
- The Tribunal may make rules governing service of documents, appeal procedures generally, and any other matter it considers necessary.
- The Tribunal may also issue guidelines respecting appeals, order a claimant to undergo further medical evaluations, order the production of documents relevant to an appeal, and conduct inquiries or investigations concerning appealed matters.
- The Tribunal has the ability to reject a matter summarily if it is of the opinion that the appeal is frivolous, trivial, vexatious, or filed with improper motives or an abuse of process.[28]
- The Tribunal may also conduct any hearings it considers necessary and can confirm, reverse, or vary the insurer’s decision that is the subject of the appeal.[29]
The Act also establishes that the chair on the Tribunal shall appoint up to three members to hear an appeal.[30]The Act states that in carrying out its powers, the Tribunal must ensure that the right to procedural fairness and natural justice is respected.[31]However, the Act does not further elaborate on this point, and critics have expressed concern over the Tribunal’s independence and objectivity due to the fact that it will be funded by private insurers who will also be paying for any benefits under the Act.[32]The Act also states that the member(s) designated to hear an appeal shall issue a decision which will be considered a decision of the Tribunal.[33]
Subject to regulations, the Tribunal may make information respecting appeals in progress and reasons for decisions public on the Tribunal’s website.[34] Decisions or orders of the Tribunal on an appeal are final and conclusive and are not open to question or review in court. A decision of the Tribunal may be reviewed by way of an application for judicial review if the application is filed with the Court and served on the Tribunal no later than 30 days after the date of the decision.[35]However, this will not result in any likelihood of a different outcome as Courts will only be able to review and remit the matter back to the Tribunal for reconsideration.
While it is currently unclear whether applicants/appellants will be able to be represented by legal counsel, the care-first regime discourages the same as the Tribunal is prohibited from awarding costs in respect of appeals.[36]Critics have further noted that unrepresented applicants/appellants may be disadvantaged as insurers will continue to receive advice from in-house counsel.[37]
LIMITED RIGHT TO SUE
The right to sue a wrongdoer will largely be extinguished, except in extremely limited circumstances. [40]
With respect to non-pecuniary damages (damages for pain and suffering):
- Actions will be limited to general damages for pain and suffering, less any amount already paid out for the permanent impairment benefit, as well as punitive/exemplary damages;
- Actions may only be commenced against:
- At-fault drivers convicted of a prescribed offence under the Criminal Code and Traffic Safety Act, as set out in the Exclusions and Tort Bar Exceptions Regulation; and
- Prescribed third parties that caused or contributed to the accident, such as automobile manufacturers, suppliers, and sellers; garage service operators; commercial and social hosts serving liquor; and municipalities that have direction, control, and management of the road on which the accident occurred.
- However, insurers shall not defend or indemnify said defendants with respect to liability or legal fees.[41]
- Notwithstanding the Contributory Negligence Act, RSA 2000, c C-27, if two or more persons are at fault for the accident, they will only be severally liable in proportion to their respective degrees of fault. Co-defendants’ claims for contribution and indemnity will not be permitted; and
- Claims against parties on the basis of vicarious liability will not be permitted.
With respect to pecuniary damages:
- Any actions regarding the determination of the income replacement benefit payable, damages for loss of income and earning capacity, and pecuniary damages will be barred, except for:
- Loss of income in excess of the maximum amount prescribed for the income replacement benefit; and
- Reasonably incurred expenses in excess of the maximum amounts prescribed for medical and rehabilitative treatment, transportation, daily living assistance, the cost of care of another person, the hiring of another person for a family enterprise, and in the case of death, reasonably incurred funeral and interment expenses.
- However, the claimant will be barred from bringing the above claims for pecuniary losses if an insurer offered a motor vehicle liability policy providing excess compensation coverage and the claimant declined said coverage. No right of action will exist against an insurer or insurance broker for a decision by the claimant to decline excess coverage. [42] As such, under the care-first system, an injured party who did not pay for excess coverage and sustains career-ending injuries caused by a drunk driver will have no recourse for their loss of income beyond the $125,000/yr maximum. Under the current tort system, the victim may sue the drunk driver for 100% of their past and future income loss.
- While there will not be a restriction on the types of parties that may be sued for pecuniary loss, any liability established against said parties will be limited to their several liability with no opportunity for co-defendants to advance claims for contribution and indemnity against each other.
In all instances, the Survival of Actions Act, RSA 2000, c S-27, will continue to apply. The Survival of Actions Act allows a deceased claimant’s action to survive for the benefit of their estate, but removes any claims for general damages, damages for future earnings, and punitive damages. Conversely, an action against a deceased defendant survives against the defendant’s estate.
AMENDED REGULATIONS
The amendments to the existing regulations under the Act make various administrative changes in anticipation of the implementation of the care-first system.[43] The majority of these amendments are already in effect.
The Automobile Insurance Premiums Regulation, AR 117/2014, governs automobile insurance rate filings for private passenger vehicles and the maximum amount payable for basic auto insurance coverage. The amendments:
a. Clarify that underwriting rules form part of an insurer’s rating program;
b. Will repeal the grid rating mechanism (effective December 31, 2026);
c. Remove the Automobile Insurance Rate Board (AIRB)’s consumer representative, whose role will become an in-house staffed function within the AIRB; and
d. Create an offence for non-compliance with the AIRB’s requests for information.
The Insurance Agents and Adjusters Regulation, AR 122/2002, establishes educational and examination requirements for licensed insurance professionals operating in Alberta. The amendments modernize the language in the regulation, align Alberta’s requirements with other jurisdictions, and transfer the responsibility of the Accreditation Committee to the Alberta Insurance Council.
The Insurance Councils Regulation, AR 126/2001, establishes the composition, authority, and term limits for Alberta’s four insurance councils, i.e. the Insurance Adjuster’s Council, General Insurance Council, Life Insurance Council, and Alberta Insurance Council, as well as their Appeal Board. The amendments introduce greater flexibility in the election of industry members and make changes to council members’ terms to align with the Alberta Public Agencies Governance Act, SA 2009, c A-31.5. The responsibilities of the Accreditation Committee are again transferred to the Alberta Insurance Council.
Finally, the Insurance Enforcement and Administration Regulation, AR 101/2022, sets out offences in other insurance regulations for which the Superintendent of Insurance can issue administrative penalties as enforcement measures. The amendments, effective December 31, 2026, will reflect the removal of the grid rating mechanism in the Automobile Insurance Premiums Regulation.
IMPACT OF THE CARE-FIRST SYSTEM
Overall, the care-first system will substantially broaden the scope of responsibilities held by insurers regarding the handling of benefits claims. Insurers will be obligated to handle these claims in good faith, making reasonable efforts to investigate and process claims in a thorough and timely manner, and ensuring that any decisions are based on reasonable grounds.
Since the new legislation sets out some complex formulas and methodologies for determining eligibility and calculating benefits, legal advice will likely be required in interpreting the legislation until the parties are familiarized with the new system. Unfortunately, the cost of same will be borne by the injured party with no recourse to recoup their costs so it is not likely many will have legal guidance.
Legal involvement in the scheme will likely be limited as the Tribunal is prohibited from awarding costs in respect of any appeal, and few claims will fall within the tort bar exceptions set out in the legislation. In addition, fewer claimants may be willing to pursue litigation, even where they have a claim that falls within an exception, due to the smaller amount of damages that will be claimable and the increased difficulties in recovering any judgments obtained.
The care-first no fault system removes almost all right to sue the wrongdoer. It takes away the foundational tort right to compensate the victim by putting them in the same financial position they would have been in but for the accident. It protects the wrongdoer. at the expense of victims. The economic incentives to drive attentively, to properly learn to drive, and to properly train drivers will largely be removed as a negligent driver will face little to no risk under the proposed legislation. A large burden will instead be borne by the victim who will then need to jump through bureaucratic hoops in the hope that their benefits are not later terminated for a missed filing deadline.
As noted, the legislation may not yet be in its final form and this is our read of it as of February 2026.
Citations:
[1] Automobile Insurance Act, SA 2025, c A-47, online: <https://www.canlii.org/en/ab/laws/stat/sa-2025-c-a-47/latest/sa-2025-c-a-47.html>.
[2] Owner’s Automobile Policy, SPF No. 1, online: <https://open.alberta.ca/dataset/2df20e09-0659-474b-a97a-058a81fd1b7c/resource/f01cfb6b-2550-4ddc-af8b-56e58bccd5ba/download/tbf-insurance-spf1-standard-automobile-policy-2022-01.pdf>.
[3] Automobile Insurance Act, SA 2025, c A-47, Division 2
[4] Benefits, Treatment and Care Regulation, online: <https://open.alberta.ca/dataset/6f654757-f884-4172-8f0b-607ae4e3881d/resource/5892a408-46cf-4ca5-8c59-e31011ed7d4d/download/tbf-benefits-treatment-and-care-regulation-draft.pdf>.
[5] Benefits, Treatment and Care Regulation, s. 5(1)
[6] Care-First Auto Insurance Bulletin, online: <https://www.alberta.ca/system/files/tbf-care-first-auto-insurance-comparison-of-accident-benefits.pdf>.
[7] Automobile Insurance Act, SA 2025, c A-47, s.36-38
[8] Permanent Impairment Regulation, online: <https://open.alberta.ca/dataset/18496100-feb0-42eb-948b-b4df22d9c5f9/resource/32f1a01f-1ab0-469e-ba07-f9a48e2f909f/download/tbf-permanent-impairment-regulation-draft.pdf>.
[9] Care-First Auto Insurance Bulletin
[10] Exclusions and Tort Bar Exceptions Regulation, online: <https://open.alberta.ca/dataset/21ce76f6-5208-476b-8ec8-b3c3f0c56159/resource/b139fba0-bdba-4631-abf9-e1938200f543/download/tbf-exclusions-and-tort-bar-exceptions-regulation-draft.pdf>.
[11] Automobile Insurance Act, SA 2025, c A-47, Division 3
[12] Income Replacement and Monetary Benefits Regulation, online: <https://open.alberta.ca/dataset/102e4839-6f2d-4ba4-999f-a93306d6666d/resource/ad6ca13e-c79f-4bd1-bdef-1e15b24c8609/download/tbf-income-replacement-and-monetary-benefits-regulation-draft.pdf>.
[13] Care-First Auto Insurance Bulletin
[14] Automobile Insurance Act, SA 2025, c A-47, Division 3
[15] Care-First Auto Insurance Bulletin
[16] Care-First Auto Insurance Bulletin
[17] Automobile Insurance Act, SA 2025, c A-47, Division 5
[18] Care-First Auto Insurance Bulletin
[19] Exclusions and Tort Bar Exceptions Regulation
[22] Automobile Insurance Act, SA 2025, c A-47, Part 4, s 83(2).
[23] Automobile Insurance Act, SA 2025, c A-47, Part 4, s 83(3).
[24] Automobile Insurance Act, SA 2025, c A-47, Part 4, s 83(4).
[25] Automobile Insurance Act, SA 2025, c A-47, Part 4, s 83(5).
[26] Automobile Insurance Act, SA 2025, c A-47, Part 4, s 83(6).
[27] Automobile Insurance Act, SA 2025, c A-47, Part 4, s 83(7), 83(8).
[28] Automobile Insurance Act, SA 2025, c A-47, Part 4, s 85(2).
[29] Automobile Insurance Act, SA 2025, c A-47, Part 4, s 85(2).
[30] Automobile Insurance Act, SA 2025, c A-47, Part 4, s 87(1).
[31] Automobile Insurance Act, SA 2025, c A-47, Part 4, s 87(4).
[33] Automobile Insurance Act, SA 2025, c A-47, Part 4, s 87(5).
[34] Automobile Insurance Act, SA 2025, c A-47, Part 4, s 90(2).
[35] Automobile Insurance Act, SA 2025, c A-47, Part 4, s 89(1),89(2).
[36] Automobile Insurance Act, SA 2025, c A-47, Part 4, s 85(4).
[37] https://lawmatters.cba-alberta.org/en-ca/articles/law/hot-topics/no-fault-no-lawyer-no-justice
[40] Automobile Insurance Act, SA 2025, c A-47, Division 3
[41] Exclusions and Tort Bar Exceptions Regulation, s.14 Tort action for non-pecuniary damages — no defense or indemnity by insurer
14 An insurer shall not defend or indemnify a person referred to in section 80(1)(a), (b) and (d) of the Act in respect of liability imposed on the person by law or be liable for any legal expenses or disbursements or any other costs in respect of an action or proceeding commenced against the person under section 80(1) of the Act.
[42] Exclusions and Tort Bar Exceptions Regulation, s.16
[43] Superintendent of Insurance Notice, Bulletin Number 04-2025 (October 2025), online: <https://open.alberta.ca/dataset/9e781ed4-de90-47b5-b57f-4ab96bdc7325/resource/b2a27906-450a-4a19-b2ba-e16396c40ce4/download/tbf-superintendent-of-insurance-2025-04-notice.pdf>.
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