What Rights Do Accident Victims Lose Under No-Fault?

When Alberta’s no-fault auto insurance system takes effect on January 1, 2027, accident victims will lose several important rights they currently have under the tort-based system. These changes will affect how much compensation you can receive and how much control you have over your claim.

The Right to Sue the At-Fault Driver

• Current system: You can sue the driver who caused the accident for pain and suffering, lost income, future care costs, and other damages.
• No-fault system: This right is eliminated in almost all cases. You must rely on your own insurer for benefits.

The Right to Claim Pain and Suffering Damages

• Current system: Victims can recover damages for pain, suffering, and loss of enjoyment of life.
• No-fault system: These claims are removed, except in extremely limited situations (e.g., catastrophic injury).

The Right to Full Compensation

• Current system: Settlements are tailored to your specific circumstances, reflecting both financial and non-financial losses.
• No-fault system: Benefits are capped and standardized by law, regardless of your personal situation. This means most victims will receive less compensation overall.

The Right to a Court Process

• Current system: If you disagree with an insurer or at-fault driver, you can take your case to court.
• No-fault system: Disputes are resolved through tribunals, arbitrations, or regulatory bodies — not the courts. Your ability to challenge an unfair decision is reduced.

The Right to Choose How to Proceed

• Current system: Victims can decide whether to pursue a claim, negotiate a settlement, or go to trial.
• No-fault system: You are limited to the benefit structure set out by law, with little flexibility.

Why This Matters

For many Albertans, these lost rights mean:

• Lower settlements, even in cases of serious injury.
• Less ability to hold negligent drivers accountable.
• Greater dependence on insurance companies for recovery.