An Alberta-based law firm has raised concerns over discussions regarding potential changes to the province’s private auto insurance system.
Amid rising claim costs and government-imposed price caps, some industry voices have suggested moving towards a public or no-fault insurance model. In a statement, Ianni Law has warned that such changes could limit consumer choice and undermine drivers’ rights to fair compensation.
Alberta currently operates under a private, tort-based insurance model, allowing drivers legal recourse in car accident cases. This system differentiates the province from British Columbia and Saskatchewan, where public insurance models are in place. The current structure supports consumer choice, according to Ianni Law.
The law firm emphasized that it is “imperative” for drivers to retain the right to sue. Under a full no-fault system, Albertans could lose the ability to sue a third party for damages in the event of an accident caused by negligence.
“If an individual is injured by a negligent driver, they ought to have the right to sue for all damages,” the firm said in a statement. “We see many dramatic accidents each day that alter one’s life forever. We cannot calculate the damages on a predetermined chart or by a predetermined amount.”
The firm also pointed out that certain individuals, such as those early in their careers or in the process of establishing businesses, could face challenges in being fairly compensated under a no-fault system.
“You simply cannot quantify and compensate an individual who has not established their career yet under a no-fault system,” it said.
While the firm is open to reforms aimed at keeping premiums affordable, it stresses that any changes should preserve consumer choice and protect drivers’ rights to seek legal recourse. The firm highlighted it supports reforms that maintain the private insurance model.
Finance Minister Nate Horner has assured that public input will be a key factor in shaping any potential changes to the auto insurance system.
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