Advocates say a no-fault insurance model in Alberta could take away victims’ rights, put a strain on the healthcare system

The Alberta government introduced a no-fault auto insurance system, effective at the beginning of 2027, but advocates say it could take away victims’ rights, leaving them in vulnerable positions and putting an extra strain on the healthcare system.The new system, the Care-First Auto Insurance model, will provide unlimited treatment coverage for victims for life, but bar victims of accidents from suing for damages, such as pain and suffering, an associate lawyer at Crash Lawyers, Tyler van Vliet, told the Western Standard.“The way it works right now is: If you get hurt in a car accident, you get treatment coverage from your own insurance for up to two years after the car accident, and then once we hit that two-year mark, you're suing the at-fault insurance company — the insurance company for the driver who caused the accident — to make sure that you have the cost of your future medical expenses as well as compensation for any lost income, loss of ability to do housekeeping chores around your house, and the pain and suffering that you've dealt with along the way,” van Vliet explained.“The way it works under the new system is that once you're hurt in a car accident, you'll have what they're saying is unlimited treatment for life, but then no ability to sue for those other financial aspects. You'll get your treatment covered, but you won't be able to sue for your pain and suffering and things of that nature. So essentially, you're extending the treatment side of things from your coverage, but you're not being made whole financially for the impact of the accident.”.He says the new system is going to be similar to the Workers' Compensation Board (WCB), where victims who lose the ability to work would be getting part of their lost income, but not all of it.When asked about the percentage of the lost income that will be covered, he said insurance companies will have the sole power to decide. The current system, on the other hand, allows victims to sue insurance companies and get their lost income covered 100%.“The promise from the government was that between now and 2027, we are going to see insurance premiums rise by 7.5% in year one, then 7.5% in year two. And then starting January 2027, we’d see a significant drop down to approximately 2025 levels,” he said.However, the Insurance Bureau of Canada (IBC) is saying that the new system may end up costing more than what our current system does, van Vliet added.The vice president of the Pacific and Western IBC said in a media release “a significant course of action is needed” to make auto insurance more affordable for Alberta drivers..According to the IBC’s release, the Alberta government’s Automobile Insurance Rate Board (AIRB) “highlighted that last year auto insurers lost 20 cents for every dollar sold in premiums due to the government’s ongoing rate cap. This is creating significant strain on the availability of coverage for drivers today and on the ability of the Care-First system to deliver savings for drivers in the future.”Nicole was a student when she was involved in a crash on Deerfoot in 2017. She was not at fault. As a result of the crash, she had a concussion and the insurance company did not recognize it as an injury. That was when she had no choice but to sue to get her expenses covered.“I also incurred $25,000 in debt because I was paying for appointments and stuff, so I got that reimbursed. And I think overall my treatment was like $200,000 or something,” she said.Had Nicole not been able to sue, she wouldn't have been able to go back to work or to university, she said, noting that she now lives with sensitivity to light and sound.“I wouldn't have gotten the treatment that I was requiring,” she said.Treatment for life under the new proposed system also means putting an extra strain on the healthcare system, as patients and victims will have longer waiting times to see a doctor.The Western Standard has reached out to the Ministry of Treasury Board and Finance, and Alberta Health Services (AHS) for comments.