What would happen if you are involved in an accident under the no fault insurance system?
Unfair Compensation
A “no-fault” system removes your right to sue for pain and suffering compensation. Instead, there is a cookie-cutter benefits schedule for injuries, which puts a fixed dollar amount to an injury. Insurance companies make their money when claims costs (the cost of your injury compensation – your benefits) are kept low. In a “no-fault” system, your insurance company decides where you fit on that benefits schedule; they call all the shots. They don't have to listen to you, your doctor, or the courts. What they say goes.
No Accountability
There is no unbiased third party to ensure the process and the decisions made by insurance companies are fair. You have no recourse if evidence about your injuries is missed (or ignored) by your insurance company. What's more, a no-fault system means that bad drivers have no consequences. If one hits you, it doesn’t matter. No one’s “at fault.” You get scars. The other guy? He gets a walk. That's just not right!
Protects Bad Drivers
No-fault insurance makes bad drivers less accountable for their actions and decisions. No-fault protects bad drivers. This kind of system enables careless, bad drivers to stay on the road, since there are little to no consequences for bad behaviour.
What is No-Fault?
“No-fault Insurance” means that if you are hurt or your vehicle is damaged in an accident, your own insurance company will pay for your losses, regardless of who caused the accident. Losses experienced by other people in the same accident will be covered by their insurance company. If you are a victim in an accident caused by someone else, you would not collect damages from them. If you caused an accident, the victims of that accident would not collect damages from you. A “no-fault” system also removes your right to sue for pain and suffering benefits if you experience an accident. Instead there is a benefits schedule for injuries from an auto accident — like a chart that puts a dollar amount to an injury. It’s basically a document that says, if you break your leg, you get X amount of dollars. This is the way insurance works in British Columbia and Saskatchewan.
This is not the way auto insurance in Alberta currently works. Instead, we have an “at-fault” or “tort” system. Under the current Alberta system, damages are paid for by the insurance company of the person deemed to “at-fault” and you have a right to sue the at-fault driver’s insurance company for a settlement.
What would this mean for us?
Impact on Drivers
Life as you know it can change in a split second because you or a loved one is injured in a car accident. If you were in a car accident that was caused by another person’s carelessness or negligence, the responsible party must be held accountable for any pain and suffering that you are experiencing.
Impact on Cyclists
Cyclists are often much more seriously injured as a consequence of negligent motorists. A no-fault system would prevent crash victims from seeking appropriate compensation beyond medical coverage, with income loss protection, in particular, getting capped. You'd get what the insurance company tells you you’re entitled to.
Impact on Pedestrians
Pedestrians who have been struck by motor vehicles usually suffer severe injuries. In a collision, both drivers are protected by their vehicles, seat belts and air bags. Pedestrians have no such protections. It is easy to imagine the damage that a 3000lb vehicle can cause to an unprotected 150lb human being.
