Bill 47: Alberta’s New Auto Insurance Legislation and the Risk to Your Rights

posted in: Personal Injury

At KMSC Law, we believe it’s critical to keep Albertans informed about developments that significantly impact their rights and access to justice. The recent introduction of Bill 47, known as the Automobile Insurance Act, represents a profound shift in how auto insurance claims will be handled in Alberta. Most individuals we meet aren’t fully aware of their rights or how auto insurance systems operate until they’re forced to seek compensation after an injury. Under the new system, Albertans could suddenly find that they’ve lost rights they assumed they would always have.

What Happened with Bill 47?

On March 24, 2025, Bill 47 was introduced in Alberta’s legislature. The government promotes this new “care-first” insurance model as a means to streamline care and control rising insurance premiums. However, the legislation dramatically reduces Albertans’ rights, removing the ability to hold at-fault drivers accountable in court.

What’s at Stake?

Under the new “care-first” no-fault model, injured Albertans will have their treatment and benefits controlled entirely by insurance companies. These companies—motivated primarily by profit—will determine the nature and extent of your care and benefits, not your own healthcare providers. Decisions about your health and compensation will rest with insurance adjusters, insurance-selected doctors, and a new insurance-funded tribunal, all of which have the power to override recommendations from your personal medical providers.

The Real Meaning of “Care-First”

Though labelled as “care-first,” this is a no-fault system that prioritizes insurance companies first, not injured Albertans. Key issues with this model include:

• Treatment Controlled by Insurance Companies: Your care and recovery plan will be determined by your insurer, not your doctor.
• Benefits Determined by Insurance Companies: Compensation for your injuries will be capped and defined by insurers.
• Insurance-Controlled Overrides: Insurance adjusters and their selected medical professionals can override decisions made by your own healthcare providers.
• No Legal Recourse: Individuals will have no ability to dispute insurance company or tribunal decisions in court, or to pursue at-fault drivers for compensation.
• No Consequences for Insurers: Insurance companies face no repercussions for unfairly denying benefits or treatment.

Simply put, this system serves insurance companies’ interests far more than yours.

A Real-World Scenario

Today, if you’re injured in an accident caused by someone else’s negligence, you have choices. You can work with your insurance company to ensure your medical treatments—such as physiotherapy or massage therapy—are covered. You choose your healthcare providers, often private clinics you trust and feel comfortable with. You can pursue a claim against the at-fault driver for compensation, and if you find the settlement offered unfair, you can hire an injury lawyer who will advocate for you, ensuring you continue to receive essential treatment while pursuing the compensation you deserve. If a fair settlement can’t be reached, you have the right to have your case heard by an impartial judge. This current system provides fairness and accountability, holding negligent parties responsible.

Community Impact

The shift to a no-fault system will lead to broad negative impacts across Alberta communities. Without legal accountability, negligent drivers face fewer consequences, potentially increasing reckless or careless driving behaviours. Additionally, the insurance industry’s promise of reduced premiums lacks clear definition and enforceability, making any actual savings highly uncertain. Independent polling consistently shows most Albertans do not support these changes, recognizing that they primarily serve the interests of already highly profitable insurance companies.

It’s Not Too Late to Take Action

Although the bill has been tabled, you still have a chance to influence the outcome. Albertans overwhelmingly prefer accountability and justice when it comes to auto insurance.

We encourage you to:

• Visit FAIRAB.ca to learn more.
• Contact your local MLA and clearly express your concerns.
• Raise awareness among your family, friends, and community through social media.

Standing Up for Albertans

KMSC Law and our Injury Law Team remain dedicated to fighting for your rights and ensuring fair treatment under the law. The proposed changes won’t take effect until 2027, so the current system—one that prioritizes accountability and fair compensation—remains in effect until then.

If you have been injured or have an ongoing claim, rest assured your rights haven’t changed, and we’ll continue advocating vigorously for the compensation you deserve.

KMSC Law stands firmly against any changes that would diminish your rights or protections. We’re here to support you, answer your questions, and defend your interests every step of the way.