The Dangers of No-Fault Insurance

Author: owen-lewis posted in: Personal Injury

Automotive accidents are life-changing events. In the blink of an eye, you could be dealing with unexpected injuries, medical expenses, and other losses. Dealing with the aftereffects of a car accident is even more difficult in regions that have adopted a no-fault automotive insurance system. Under no-fault,  your right to sue for damages is limited or eliminated. While this system aims to simplify the claims process, it is crucial to understand the dangers associated with losing the right to sue.

Here are a few reasons why Alberta adopting a no-fault system could be dangerous for you:

No Compensation for Pain and Suffering

One of the consequences of a no-fault system is limited compensation for pain and suffering. In many cases, there is no such compensation at all. Motor vehicle accidents often leave their victims with life-long injuries like a spinal cord injury or serious brain injury. These injuries can affect every aspect of your life, from your ability to play the sports you love, play with your kids, or even sit down long enough to take a road trip. In a no-fault system, accident victims cannot seek damages for these losses. Instead, they may only claim benefits from their own insurance company, which may only cover medical expenses and lost wages. Under a no-fault system, you will be unable to seek additional compensation for the emotional distress, physical pain, or diminished quality of life resulting from the accident.

Financial Burden on Accident Victims

Without the ability to sue, accident victims may bear a significant financial burden. In cases where their medical expenses exceed the coverage provided by their own insurance, individuals will be responsible for paying the remaining costs out of pocket. This policy can cause financial strain, particularly for those who have sustained severe injuries requiring extensive medical treatments, rehabilitation, or long-term care. Losing the right to sue can leave accident victims without the means to recover the full extent of their losses, jeopardizing their financial stability. In many no fault jurisdictions, wage loss claims are capped and a lower amount than the victim’s actual wage loss is paid, resulting in even greater hardship for the injured party.

Unfair Outcomes and Inequitable Compensation

Losing the right to sue can result in unfair outcomes and inequitable compensation. In cases where the fault lies predominantly with one party, a no-fault system distributes the financial burden evenly between both parties involved in the accident. This distribution can lead to unjust outcomes, where the innocent party is left to bear the consequences of the other party’s negligence or recklessness. The inability to seek legal recourse removes the opportunity for accident victims to pursue a fair resolution.

KMSC Injury Law Team and FAIR Alberta

If you are seeking legal advice regarding your personal injury claim, please contact the KMSC Injury Law Team today for a free consultation. Our experienced team of litigators will ensure your claim gets the resolution it deserves, all while ensuring you are exposed to minimal financial risk.

If you are interested in keeping no-fault out of Alberta and maintaining the right to full and fair compensation for injured Alberta, visit FAIR Alberta. FAIR is advocating for a fair and balanced system that protects the rights of accident victims. If you are injured, losing your right to sue is no different than losing the control you have over your own life.