News Articles

INSURANCE AMENDMENT ACT

As of October 1^st, 2004, the new Insurance legislation came into effect which limits a persons right to be compensated for injuries received in a motor vehicle accident to $4,000.00 in respect for damages for pain and suffering where the injuries are defined as "minor injuries".  To determine however, if injuries are minor has created a major headache. 

The legislature passed an act which says very little, as the whole scheme is left for regulations.  This means that bureaucrats and not elected representatives determine the rights of injured Albertans. 

The regulations, which are hard to understand, provide definitions of what are minor injuries and lays down a system which injured parties have to follow to determine that issue.  This includes being examined by an authorized medical examiner and certain time procedures have to be followed.  Injured parties also have to follow medical programs all done under supervision while big brother is watching. 

It is difficult to determine for a long time in many cases, whether or not the injury falls within the regulations and persons may well be left to deal with their problems on their own because minor injuries do not make legal involvement an economic proposition. 

This leaves injured persons at the mercy of insurance adjusters whose prime duty is to their insurance company principals and not the injured person.  The system is designed for the benefit of large insurance companies and shows this governments penchant to look after the interests of big business. 

The effect of the system will be that many injured persons will be left to their own devices and end up getting inadequate settlements from the insurance companies who will have the final say in practice. 

Of course, an injured person has the ultimate right in the end to sue but unless it can be shown not to be a minor injury within the meaning of the regulations he or she may well be left to their own devices in a civil court, formally known as the small claims court.  Minor injuries may turn out not to be so minor, but Albertans will end up being short changed by a system which is a bureaucratic nightmare and could only have been created by a government which is not sensitive to the needs of injured persons. 

In the circumstances, I would encourage any injured person, in any event, to consult an experienced lawyer who can advise them whether or not they are dealing with a minor injury and either act for them if appropriate, or advise them on what to do.

By Herbert Fielding, Q.C.
November 24, 2004