Latest news with #AutomobileInsuranceAct
Calgary Herald
4 days ago
- Automotive
- Calgary Herald
Alberta's overhaul of the auto insurance system continues. Here's how much Albertans could be paid out and the latest updates
Alberta has announced the latest changes to its new auto insurance system, which now includes how much Albertans will be paid out in accidents. Article content The province passed the Automobile Insurance Act, which will overhaul the current auto insurance model in favour of what the province is calling a 'care-first' auto insurance system, in May. Article content Article content On Wednesday, the government put out an intentions paper outlining the development of the model, including the monetary value Albertans would be paid if they were involved in a motor vehicle accident, updates on a dispute tribunal and the limited cases when Albertans will be able to pursue legal action. Article content Article content Postmedia attended a technical briefing with government officials on Wednesday. Here's a breakdown of what the latest updates will be for the new system set to launch on Jan. 1, 2027. Article content Article content According to the province, initial benefits under the new system will be set at Manitoba levels, except for the income replacement benefit, which will be based on annual income and is $5,000 higher than Manitoba to reflect Alberta's higher average income. After the implementation of the new system, benefits will be indexed annually for inflation. Article content 'Under the Care-First system, all injured parties in an accident involving a motor vehicle with an auto insurance policy will have access to the medical and rehabilitation they require, including cyclists and pedestrians regardless of whether they have insurance coverage,' says the document. Article content Article content Medical and rehabilitation benefits will be 'unlimited for all reasonable and necessary expenses' until maximum medical recovery. If personal care is needed, the payout would be $6,781 per month for catastrophic injuries and $5,671 per month for non-catastrophic injuries. Article content Article content Those who have a permanent impairment, depending on the injury, could receive a lump-sum payment of up to $298,520 for catastrophic injuries and up to $189,055 for non-catastrophic injuries. Article content If someone dies as a result of an accident, a maximum of $10,308 could be paid out for the cost of the funeral and up to $4,310 per person for grief counselling. Payments could also be made to spouses or dependants.
Edmonton Journal
4 days ago
- Automotive
- Edmonton Journal
Alberta's overhaul of the auto insurance system continues. Here's how much Albertans could be paid out and the latest updates
Alberta has announced the latest changes to its new auto insurance system, which now includes how much Albertans will be paid out in accidents. Article content The province passed the Automobile Insurance Act, which will overhaul the current auto insurance model in favour of what the province is calling a 'care-first' auto insurance system, in May. Article content Article content On Wednesday, the government put out an intentions paper outlining the development of the model, including the monetary value Albertans would be paid if they were involved in a motor vehicle accident, updates on a dispute tribunal and the limited cases when Albertans will be able to pursue legal action. Article content Article content Postmedia attended a technical briefing with government officials on Wednesday. Here's a breakdown of what the latest updates will be for the new system set to launch on Jan. 1, 2027. Article content Article content According to the province, initial benefits under the new system will be set at Manitoba levels, except for the income replacement benefit, which will be based on annual income and is $5,000 higher than Manitoba to reflect Alberta's higher average income. After the implementation of the new system, benefits will be indexed annually for inflation. Article content 'Under the Care-First system, all injured parties in an accident involving a motor vehicle with an auto insurance policy will have access to the medical and rehabilitation they require, including cyclists and pedestrians regardless of whether they have insurance coverage,' says the document. Article content Article content Medical and rehabilitation benefits will be 'unlimited for all reasonable and necessary expenses' until maximum medical recovery. If personal care is needed, the payout would be $6,781 per month for catastrophic injuries and $5,671 per month for non-catastrophic injuries. Article content Article content Those who have a permanent impairment, depending on the injury, could receive a lump-sum payment of up to $298,520 for catastrophic injuries and up to $189,055 for non-catastrophic injuries. Article content If someone dies as a result of an accident, a maximum of $10,308 could be paid out for the cost of the funeral and up to $4,310 per person for grief counselling. Payments could also be made to spouses or dependants.
Cision Canada
15-05-2025
- Automotive
- Cision Canada
Insurance Bureau of Canada welcomes passing of Alberta's Bill 47, the Automobile Insurance Act
Government needs to move urgently to implement new model by 2027 EDMONTON, AB, May 15, 2025 /CNW/ - Today, Bill 47, the Automobile Insurance Act, was given Royal Assent in the Alberta legislature. After the legislation was passed into law, Aaron Sutherland, Vice-President, Pacific and Western, Insurance Bureau of Canada (IBC), issued the following statement: "Alberta's insurers congratulate the government on the passage of Bill 47 and the Care-First model, which represents the most ambitious transformation of the auto insurance system in provincial history. The government must now move urgently to finalize regulatory details of the new model to have it in place by January 2027. "For the system to be successful and deliver savings to Alberta drivers, the government will need to strike a balance between the benefits provided to those injured in collisions and the amount of litigation that remains in the system. The evidence is clear – the more lawyers are involved in the auto insurance system, the less money drivers will save. To ensure long-lasting affordability, the government must remain steadfast in eliminating the sky-high legal costs plaguing the current system. "Fixing the challenges in the current system will be critical to the success of the new auto insurance model. Alberta's insurers are now in the third consecutive year of government rate caps and are paying out $1.17 in claims and expenses for every $1 earned in premiums. This is not sustainable. The rate cap has undermined the competitive market, forcing some insurers to leave the Alberta market altogether and causing confusion and frustration for drivers, who increasingly face challenges securing the coverage they need. "As Alberta designs its new auto insurance system, it must work to attract auto insurers back to the province by leaving rate-setting to insurers, cutting red tape and letting the competitive market create the conditions for lasting affordability. "Alberta's insurers are eager to be part of the solution and will continue to put forward ideas on how to improve care and affordability for drivers today and in the future." About Insurance Bureau of Canada Established in 1964, Insurance Bureau of Canada (IBC) is the national industry association representing Canada's private home, auto and business insurers. Its member companies make up the vast majority of Canada's highly competitive property and casualty (P&C) insurance market. As the leading advocate for Canada's private P&C insurers, IBC collaborates with governments, regulators and stakeholders to support a competitive environment for the P&C insurance industry to continue to help protect Canadians from the risks of today and tomorrow. IBC believes that Canadians value and deserve a responsive and resilient private P&C insurance industry that provides insurance solutions to both individuals and businesses. For media releases, IN Focus articles, or to book an interview with an IBC representative, visit Follow us on LinkedIn, X and Instagram, and like us on Facebook. If you have a question about home, auto or business insurance, contact IBC's Consumer Information Centre at 1-844-2ask-IBC. We're here to help.
