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Will Alberta Move to a Pure No-Fault Auto Insurance System?

An Alberta auto insurance advisory committee has recommended the province move to a pure no-fault system delivered by private insurers, a change that the Insurance Bureau of Canada (IBC) does not feel would be in the best interest of drivers.

One of the recommendations of the advisory committee’s report was the move to a pure no-fault system, “but the changes the government made were actually just updates to the current system, which is more just a hybrid between tort and a no-fault system.”

The report recommendations were announced when the government introduced Bill 41, the Insurance (Enhancing Driver Affordability and Care) Amendment Act, Oct. 29. The bill passed second reading Nov. 18.

The government introduced a “direct compensation for property damage” framework into the system, which is in every other private auto sector jurisdiction across the country, said Celyeste Power, vice president of IBC’s Western region. This is a first-payer system (not a no-fault system) for physical vehicle damage.

Other proposed changes under the bill and through new Orders in Council, among others, expand the number of injuries under the minor injury regulation and limit the number of expert witnesses that could be used in motor vehicle accident injury claims.

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