Care-First and Lawsuits: What Alberta Drivers Need to Know
Care-First does not eliminate lawsuits, but it significantly reduces the need for them. Care-First dramatically increases the benefits provided to those injured in collisions, providing everything needed to support an injured person’s recovery according to the latest medical evidence and recommendations of the health care providers overseeing a person’s care – and not their insurer.
By vastly improving and clearly defining what an injured person is entitled to, the Alberta government’s new system delivers faster care and compensation for accident victims while helping keep premiums affordable for all drivers.
Why are fewer lawsuits needed under Care-First?
Under Alberta’s current auto insurance system, people with more serious injuries often need to sue the at-fault driver to access the additional care, income replacement and compensation they need to recover.
Care-First changes that. The Alberta government has dramatically expanded the benefits available so that access to compensation and care no longer requires litigation. The new system replaces conflict with predictability and, in doing so, reduces the need for expensive litigation and lawsuits.
How does Care-First improve medical coverage?
Care-First will provide the most generous accident benefits package in Canada and is designed so you don’t need a lawsuit to access all the treatment you need.
Medical treatment and rehabilitation benefits will be uncapped and will continue as long as they are necessary to facilitate recovery from an injury. Importantly, care will be guided and informed by the latest medical evidence and health care professionals, not insurers.
For people with catastrophic injuries, benefits will continue for life. Coverage also includes personal care assistance, along with travel and accommodation expenses related to recovery.
As an additional consumer protection measure, Care-First will maintain the ability to sue for any out-of-pocket medical expenses associated with your care and not covered by your policy.
What if my injuries prevent me from working?
Care-First provides income replacement benefits equal to 90% of your net income, up to a maximum annual income of $125,000. Drivers earning more than this will retain the right to sue for income replacement above this amount, unless coverage for it was offered by their insurer.
The new system also includes coverage for childcare expensesand financial support for people who served as caregivers before their injury and are no longer able to do so.
What About Cash Payments for Serious Injuries?
The government’s new system includes a permanent impairment benefit of up to approximately $300,000 for more serious injuries. These are cash payments that recognize a serious injury can have a lasting impact on a person’s quality of life, beyond medical expenses and lost income, and that pain and suffering should be compensated for.
Under the current system, lump-sum awards for pain and suffering are capped by the Supreme Court of Canada at roughly $450,000, with 30-40% of the amount obtained through a settlement eaten up by legal fees.
With the permanent impairment benefit, the government has designed Care-First to provide financial awards that are nearly equal to the maximum available today – without the time, complexity and hassle of a lawsuit.
Can I still sue after a collision?
Yes.
Care-First significantly reduces the need for litigation, but Albertans will still be able to sue in a number of different ways.Those injured in collisions will maintain the ability to sue for:
- Any out-of-pocket expenses associated with their care and not offered in their insurance policy;
- Any lost income above $125,000, if coverage for this was not offered by their insurer; and
- Where the at-fault driver is convicted of certain Criminal Code or Traffic Safety Act offences, such as impaired driving.
Albertans will also be able to use a lawyer at the province’s new Dispute Resolution Tribunal, should they have a dispute with their insurer regarding their care.
In striking this balance, the Alberta government has designed Care-First to maintain the ability to sue in several important ways, provide the greatest benefits in Canada if injured in a collision, and still deliver meaningful improvement in affordability for Alberta drivers.
What happens if I disagree with my insurer?
To improve access to justice and expedite disputes regarding auto insurance claims, the Alberta government is establishing a new Dispute Resolution Tribunal to move these disagreements outside the court system and into a new body specifically designed to resolve these.
If you disagree with a decision regarding your care and benefits following a collision, you will have an avenue to challenge that decision through the tribunal process. Importantly, those using this process are able to hire a lawyer to support them in these disputes.