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Part of New and proposed legislation

Enabling better auto insurance

Bill 47 would help improve access to health and medical benefits for Albertans injured in vehicle collisions.

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Status: Bill 47, the Automobile Insurance Act was introduced on March 24, 2025
Ministry responsible: Treasury Board and Finance

Overview

If passed, Bill 47, the Automobile Insurance Act, 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.

Proposed changes would 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 would be developed through future regulations.

Alberta’s new care-first automobile insurance system would 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

If passed, Bill 47, the Automobile Insurance Act, will:

  • establish when benefits would 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 would need to pay or reimburse Albertans for reasonable and necessary medical, rehabilitation and other benefits
    • These would include prescribed health care services, equipment, medication and supplies, among other prescribed services.
    • The legislation would apply as long as the services are needed to recover from injuries caused by the accident.
  • entitle Albertans who are unable to continue their employment, are denied Employment Insurance Act benefits, or are unable to complete their educational studies, an income replacement benefit
  • entitle Albertans who sustain a permanent impairment because of an accident a permanent impairment benefit
    • The benefit would be subject to specific conditions. Insurers would 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, would be entitled to a death benefit
    • Funeral, interment and grief counselling services may be reimbursed.
  • outline how Albertans would make a benefits claim
    • Proposed legislation would establish the requirement that insurers must assist their clients, and would set out the independent medical examination process rules to make claims.
  • require insurers to pay compensation in accordance with the regulations
    • Proposed legislation would describe how benefits would 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 would work with other programs, including the Workers Compensation Act
  • require insurers to notify Albertans of decisions that would impact their benefits in writing
    • Proposed legislation would 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 would 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

If passed, Bill 47 will take effect on proclamation.

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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