Bill 47, which upon proclamation, will become the Automobile Insurance Act (the “Act”), was introduced in the First Session of Alberta’s 31st Legislature in 2025. The Bill proposes a major overhaul of the province’s automobile-insurance framework by replacing the current fault-based model with a “care-first” or no-fault approach. The intent is to streamline compensation for accident-related injuries, limit litigation, and create a consistent benefit structure across the province. The Government first announced its intention to move to a no-fault system in November 2024, and Bill 47 passed third reading in May 2025. While the proposal has drawn attention from insurers, motorists, and the legal community, it remains before the Legislature and has not yet come into force.
Under Alberta’s present system, individuals injured in a motor-vehicle collision may pursue damages against the at-fault driver. Compensation is determined through the tort process and depends on proving negligence. Bill 47 would move Alberta toward a benefit-based scheme in which entitlement to compensation does not turn on fault. The legislation intends to repeal the automobile-insurance provisions of the Insurance Act and replace them with a stand-alone statute that sets out eligibility, benefit calculations, and limitations on claims.
The new framework divides compensation into defined categories such as health-care expenses, income-replacement payments, and rehabilitation supports. Each is outlined in detail in later parts of the Bill. The foundation of the proposed regime appears in Part 2 of the Bill, particularly in sections 4 and 5, which together remove most tort actions and create a statutory right to benefits for injured persons.
Under section 5(1) of the Act, insurers must pay compensation for bodily injury or death “regardless of who is at fault for an accident.” [1] In practical terms, this provision ensures that every eligible person involved in an automobile accident can receive benefits without having to prove fault, shifting compensation from litigation to a standardized entitlement administered through insurers.
By eliminating fault as a prerequisite to recovery, section 5 establishes a clear right to benefits under defined conditions. Details such as income-replacement formulas, rehabilitation allowances, and medical-expense caps are addressed elsewhere in the Bill and will ultimately be refined through regulation. Taken together, these provisions lay the groundwork for a standardized, province-wide compensation system.
Section 4 of the Act eliminates most tort actions arising from automobile accidents. It provides that individuals have “no right of action” and must not commence or maintain any court proceedings for bodily injury or death sustained in an accident. This clause effectively eliminates most tort claims for personal injury caused by vehicle use. Once in force, individuals injured in collisions will generally be unable to sue at-fault drivers or other parties for non-pecuniary damages such as pain and suffering, except in limited circumstances to be defined by regulation. Part 3 of the Act introduces narrow exceptions allowing civil actions in cases involving specified offences under the Criminal Code and/or Traffic Safety Act. The intent, reflected in the wording of Bill 47, is to shift recovery from courtroom litigation to insurer-administered benefits.
This removal of tort recourse marks a significant change in Alberta’s automobile-insurance landscape. The Bill also contemplates the creation of an Automobile Care-First Tribunal (the “Tribunal”), funded by private insurers, to resolve benefit disputes. Decisions of the Tribunal are subject to limited judicial review rather than a full court appeal process. At the same time, the Bill leaves scope for regulations or exceptions, meaning the precise limits of any remaining causes of action will be determined once the accompanying rules are issued.
In the meantime, the existing Insurance Act continues to govern accidents occurring before the new legislation takes effect, which is expected to be January 1, 2027. The Insurance Act and its regulations will continue to apply to accidents causing bodily injury or death that occurred before January 1, 2027.
Bill 47 represents one of the most substantial proposed reforms to Alberta’s auto-insurance system. Its emphasis on uniform statutory benefits over fault-based litigation aligns Alberta more closely with the model already in place in British Columbia, although the specific mechanics of Alberta’s version will depend on future regulations. The change is expected to streamline claims handling and may ease pressure on the courts, but it also redefines the longstanding balance among claimants, insurers, and legal practitioners.
Citations:[1] Bill 47 – Automobile Insurance Act, 1st Sess, 31st Leg, Alberta, 2025, ss 4, 5.