Alberta’s proposed no-fault insurance system sparks controversy over injury payouts

The Alberta government has quietly released draft regulations for its proposed no-fault auto insurance system, drawing criticism from legal experts and advocacy groups over a controversial component that assigns standardized compensation for specific injuries.

The draft “Permanent Injury Regulation,” made public just before the Thanksgiving weekend, outlines a system in which Albertans who suffer permanent injuries in collisions would receive pre-set compensation based on a government chart.

The proposed system is scheduled to take effect in January 2027.

Among the examples flagged by FAIR Alberta, a coalition opposing the no-fault model, are payouts such as $56,717 for the loss of an eye, $41,592 for partial loss of a hand, and $18,906 for a pregnancy loss occurring after 20 weeks. Critics refer to the chart as a “meat chart,” a term used in the insurance industry to describe standardized injury valuations.

Fred Litwiniuk, Chief Growth Officer at Litco Law, expressed concern over the implications of the proposed system.

“For anyone with compassion or empathy, to hear those sorts of numbers thrown about for the loss of a human life, it’s almost shocking,” he said. “I don’t think Albertans will like the idea of a no-fault meat chart.”

Litwiniuk emphasized that injuries affect individuals differently depending on their circumstances.

“Let’s say you injure your hand—that’s different if you’re a concert pianist versus an office worker,” he explained. “The current system allows for personalization, whereas the no-fault system doesn’t.”

Under the draft rules, insurers would still determine whether an injury qualifies as permanent, meaning the fixed payouts are not guaranteed. Litwiniuk believes such sweeping changes should be subject to a public referendum.

In response to growing concerns, the Alberta government clarified that the regulation does not specifically list fixed dollar amounts despite it introducing a system of pre-determined compensation for injuries.

“As part of the development of the new care-first auto insurance system, a review of benefits available under other similar jurisdictions, including British Columbia and Manitoba was completed,” the province stated.

“Based on this review, the permanent impairment regulation was created and describes percentages of impairment attributed to specific types of injuries. The permanent impairment percentage is then multiplied by the total maximum benefit that will be established by the government.”