As many people are aware, the Government of Alberta is reviewing our current automobile insurance to make it more affordable and help stability in the long term. They commissioned two reports. The first report compared average premiums under different existing auto insurances – both across Canada, but also included jurisdictions in Australia. The second report examined the broader costs and benefits of the different models.
What did the reports conclude?
Overall, the reports point towards the possibility of a privately-delivered no-fault model that will “offer a pathway towards maintaining employment stability, maximising consumer choice, and protecting government revenues.”
No-fault insurance doesn’t mean that no one is at fault in a motor vehicle collision, just that each driver will deal with their own insurance company on claims. Also, the party at fault (e.g. rear ending another vehicle) can get the same coverage and benefits as the person who was not at fault (e.g. the vehicle rear-ended). It also protects the at-fault driver from any court proceedings. Albertans have reported that they are not that keen on this insurance option.
Of interest, the reports focussed (as per their mandate) on premium costs and broader implementation costs without focus on differences in delivery of health care services and possible differences in health outcomes that might result from each different system. Questions regarding the frequency and duration of treatment, fee reimbursement for healthcare providers and ability to refer for evidence-based programs of care remain. Many of the jurisdictions evaluated employ a ‘WCB-style’ rehabilitation system.
You can have your say!
The government is also seeking engagement from Albertans via a survey. The survey focuses on five core principles to insurance reform: affordability, stability, simplicity, care focused and accountability. Overall, the survey appears to be balanced and objective – but only if people complete it, so we could encourage you to head to the survey link to have your say. Have your colleagues, friends and family do the same.
I think most people understand how important this issue is for those injured in motor vehicle collisions. I look forward to providing more information and answer questions to any interested parties at an upcoming inservice hosted with the fabulous Dana Neilson of Rodin Law. Another inservice will be held on June 5 with another outstanding lawyer – Jackie Halpern of McLeod Law.
