Under the suggested Care-First Auto Insurance model in Alberta, injured victims would no longer have to go through lengthy legal battles, but injury lawyers say under the current system, they can get settlements six times bigger, if they sue the at-fault driver.When you sue an at-fault driver, the insurance provider acts on behalf of the insured person and makes the payments.Ricky Bagga, founder and CEO of Crash Lawyers, told the Western Standard under the proposed no-fault system, seriously injured victims would only get up to $187,000, instead of settlements that can exceed $1 million. When asked about lawyer fees, he said lawyers mostly charge 30% of the outcome, leaving the severely injured victim more than $700,000.The government said in a media briefing on Wednesday that injured victims of car crashes get up to $187,000 without having to go to court. In addition, they get coverage for health treatments that are not normally covered by Alberta Health Services, such as physiotherapy and chiropractic therapies.Under the new model, insurers could cut off treatment if it’s deemed to no longer offer a “measurable benefit,” argues an injury lawyer and partner at Law Fifty One, Steven Breslauer..Advocates say a no-fault insurance model in Alberta could take away victims’ rights, put a strain on the healthcare system.Breslauer argues that the change removes fair compensation and independent oversight, all for “questionable savings — with the government’s promised $400 annual premium reduction already in doubt.”“In short, the $187,000 figure is not typical, and for most Albertans — especially those with invisible but debilitating chronic pain, soft tissue injuries — the proposed model means giving up the right to fair compensation, without any meaningful savings per policy or recourse,” Breslauer said.In response, the Ministry of Treasury Board and Finance said in an email to the Western Standard that under the new system, "there will be no need to engage legal counsel to obtain a permanent impairment benefit, meaning faster access to benefits for Albertans. There is also a maximum permanent impairment benefit of $298,520, and for non-catastrophic injuries, it is up to $189,055. These amounts will be adjusted annually to reflect inflation and other affordability pressures.”According to the government, the Care-First Auto Insurance system aims to deliver faster support for victims affected by crashes. It will prioritize timely medical care and support over legal battles, ensuring all injured parties — drivers, passengers, pedestrians, and cyclists — receive necessary treatment regardless of fault, while maintaining legal accountability and premium adjustments for at-fault drivers, according to the report.The new system also expands income replacement benefits, providing up to 90% of net income (capped at $125,000 annually) for those unable to work or study due to injuries, with payments continuing as needed up to age 65. Special provisions support students, minors, caregivers, and unpaid family workers. Caregiver and childcare expense benefits are also included, said the government in the report..Here’s what the government of Alberta wants you to know about the Care-First Auto Insurance model.However, benefits will be denied for claimants convicted of serious driving offenses or those already unemployable before the accident. Payments end when individuals can return to work or after five years for those over 60 at the time of injury, according to the report.“(The) government had not yet made a decision on the extent to which litigation would be available to injured parties,” the government said in a briefing on Wednesday.Under the Care-First model, Albertans retain the right to sue at-fault drivers in specific situations. They can claim pain and suffering damages if the driver is convicted of certain offenses, including driving- or murder-related crimes under the Criminal Code, or impaired driving and failure to stop under the Traffic Safety Act.Injured victims may also sue for out-of-pocket expenses that exceed their auto insurance benefits, but only for costs covered by Care-First. Expenses for treatments chosen by the injured person that lack medical evidence or do not aid functional recovery are excluded from court claims.The new Care-First model will come into effect upon proclamation of the new Automobile Insurance Act, which is anticipated for January 1, 2027.The Western Standard also asked the Ministry of Treasury Board and Finance about why it did not adopt Ontario's no-fault model, where victims retain the right to sue.“Alberta’s government completed significant consultation with many Canadian and international jurisdictions, insurers, subject matter experts, and other stakeholders. The conclusion we reached was that the Ontario model would likely increase costs and diminish affordability due to its litigation-based 'threshold' system, which requires victims to prove permanent and serious injury to sue," the ministry said in response."This is an approach that drives up expenses and delays access to necessary care and recovery.”.WATCH: Calgary man rebuilds life after receiving more than $1M in auto insurance settlement
