Alberta's Auto Insurance Overhaul: Understanding Bill 47 And The Care First Model

On November 21, 2024, Alberta Premier Danielle Smith accompanied by Minister of Finance Nate Horner, and Minister of Affordability and Utilities Nathan Neudorf, announced a seismic shift in compensation for those injured in motor vehicle accidents in Alberta.

Alberta's present system offers modest compensation for medical expenses, wage loss replacement, and death, grief counselling, and funeral benefits under Section B of a driver's motor vehicle insurance policy. That compensation is limited (for example, medical expenses are capped at $50,000 and wage loss benefits only apply in cases of total disability, to a maximum of $600 per week for 104 weeks). Any additional compensation, including general damages for pain and suffering, is only obtained through the tort system: by suing the at fault driver, if any, and at fault drivers lack any additional recourse.