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Part of New and proposed legislation

Enabling better auto insurance

The Automobile Insurance Act (Bill 47) will help improve access to health and medical benefits for Albertans injured in vehicle collisions.

Status: The Automobile Insurance Act received royal assent on May 15, 2025.
Ministry responsible: Treasury Board and Finance

Overview

The Automobile Insurance Act (formerly Bill 47) will bring in key changes to Alberta’s auto insurance system and establish a framework for improved access to health and medical benefits for Albertans injured in vehicle collisions.

The act will establish the benefits Alberta drivers may be entitled to if they are injured, under what conditions they could sue the at-fault driver and how Albertans can appeal care and treatment decisions made by their insurance company. The act is enabling legislation, which means that many substantive rules will be developed through future regulations.

Alberta’s new care-first automobile insurance system will shift the focus away from court battles and costly litigation to providing care and support for everyone injured in a collision, so that they get the help they need when they need it.

Key changes

The Automobile Insurance Act will:

  • establish when benefits will be payable to Albertans who are injured or die from a collision
  • direct insurers to pay compensation benefits regardless of who is at fault for the accident
  • set out what insurers will need to pay or reimburse Albertans for reasonable and necessary medical, rehabilitation and other benefits
    • These will include prescribed health care services, equipment, medication and supplies, among other prescribed services.
    • The legislation will apply as long as the services are needed to recover from injuries caused by the accident.
  • entitle an income replacement benefit to Albertans who are unable to continue their employment, are denied Employment Insurance Act benefits, or are unable to complete their educational studies
  • entitle a permanent impairment benefit to Albertans who sustain a permanent impairment because of an accident
    • The benefit will be subject to specific conditions. Insurers will need to determine the entitlement to administer this benefit.
  • establish that in the event of a death from an accident, the spouse or adult partner, or other dependents of the deceased, will be entitled to a death benefit
    • Funeral, interment and grief counselling services may be reimbursed.
  • outline how Albertans will make a benefits claim
    • The act will establish the requirement that insurers must assist their clients, and will set out the independent medical examination process rules to make claims.
  • require insurers to pay compensation in accordance with the regulations
    • The act will describe how benefits will be paid, including annual indexation of benefit amounts and rules on the payment of benefits to minors and dependents.
  • establish the rules on how an insurer may recover costs if the claimant was not entitled to benefits, or where benefits were overpaid
  • outline how the act will work with other programs, including the Workers Compensation Act
  • require insurers to notify Albertans of decisions that will impact their benefits in writing
    • The act will establish a process to require an internal review of that decision, if requested by the claimant.
  • restrict, in most cases, the ability to sue an at-fault driver for injuries in an accident
    • Exceptions to litigation will include if the at-fault driver is convicted of certain driving offenses under the Criminal Code or Traffic Safety Act (to be determined in regulations), or if losses exceed the amounts provided by the insurance policy, such as lost income.
  • establish the Alberta Automobile Care-first Tribunal through which Albertans can dispute care and treatment decisions made by their insurance company
  • include administrative elements, such as the delegation of the minister’s authority, role of the Superintendent of Insurance and the ability of its office to set guidelines, develop forms and establish fees, among others

Next steps

The Automobile Insurance Act took effect when it was proclaimed.

We will consult with health care and insurance representatives on key operational elements of the care-first model. Further regulations to implement the changes could be introduced in the fall of 2025.

Alberta’s privately delivered care-first system will start January 1, 2027.

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