With the province slated to release details on adopting a new auto insurance system later this afternoon, speculation and criticism of what these new reforms could entail are mounting.
Earlier this week, Edmonton-based Ianni Law released a news release voicing concerns over what they said were, 'recent discussions around overhauling Alberta’s private auto insurance system.'
"In response to rising claim costs and recent government-imposed price caps, some industry voices have called for reforms that would move Alberta toward a public or no-fault insurance model. Ianni Law cautions that such changes could restrict consumer choice and diminish drivers’ rights to fair compensation," the release stated.
The law firm noted that unlike British Columbia and Saskatchewan, which have public insurance systems, Alberta operates under a private, tort-based insurance model. This allows drivers the legal right to sue in car accident cases, providing a choice not available in other provinces.
Ianni Law argued that moving to a no-fault system would eliminate Albertans' right to pursue legal action if they were injured in a collision by a third party.
"A full no-fault system would strip Albertans of their ability to sue a third party for damages if injured in a motor vehicle collision. If a negligent driver injures an individual, they ought to have the right to sue for all damages. We see many dramatic accidents each day that alter one’s life forever. We cannot calculate the damages on a predetermined chart or by a predetermined amount."
They also highlighted the challenges of compensating accident victims under a no-fault system, arguing that a fixed compensation chart can't account for the varied circumstances of individuals' lives. They underlined that some accidents occur at pivotal moments, like when someone is just starting a new job or launching a business, making it difficult to quantify potential future losses fairly.
"You simply cannot quantify and compensate an individual who has not yet established their career under a no-fault system."
While they said that they support measures to keep insurance premiums affordable, they stressed the importance of preserving Alberta’s private insurance model.
"Finance Minister Nate Horner has assured that public input will be integral to shaping these potential reforms, and Ianni Law encourages Albertans to stay engaged in the discussion."
More details about the province's anticipated auto-insurance reform plans will be known later today.
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