‘It’s about vulnerable Albertans’: Lawyer says auto insurance changes to take options from drivers

Jackie Halpern, Alberta Civil Trial Lawyers Association spokesperson, speaks with Alberta Primetime host Michael Higgins about their concerns over proposed changes to auto insurance.

This interview has been edited for clarity and length.

Michael Higgins: What do you make of what the government is describing as a care-first system?

Jackie Halpern: We’re very opposed to what we call a no-fault system. I think it’s called care-first but the devil is in the details, we’re deeply concerned that Bill 47, as introduced this week, really moves Alberta down the path towards a no-fault system.

MH: What are the consequences of that? Why is that a worry?

JH: It really takes away the availability to a fundamental right of Albertans to sue, except in really exceptional circumstances.

Only when there’s a conviction of certain criminal offenses, and that’s really rare and takes years to happen, but so just as important as it removes accountability for insurance companies. It gives massive chances to the insurance companies to govern whether a person gets treatment or not without accountability.

MH: Is it not in the most serious of cases, though, where litigation does come into play?

JH: Yes, that is true, but right now, even with the system, there are large rights to get treatment and things like that without litigation. Public polling has shown that Albertans are not in favour of a no-fault insurance system.

MH: Where do you weigh in on the claim that it’s the cost of litigation that’s been driving up insurance rates in the province, and that this is where savings can be found for motorists?

JH: Legal costs aren’t the real drivers, it’s actually other things like weather events, the hail storm last year cost something in excess of $3 billion, fraud, and in car thefts, things like that. Those are the real drivers, not legal costs.

What the system would do is to hand so much power over to insurance companies and I don’t know if you recall that just a few months ago, the Alberta superintendent of insurance fined Alberta insurers over $3 million for overcharging Albertans for things. This is giving them way more power.

Do we trust them to carry that carefully? We don’t.

MH: The government does say an independent tribunal will be established to deal with those appealing benefits provided by insurance companies. Why would that not be an effective tool to

fix?

JH: It’s funded by insurers but, as it stands now looking at the legislation, there’s no costs allowed to be award in that system. So really, it’s not a deterrent.

How would a person bring a case if they’re going to bring a case? That’s a real concern, that there’s no cost consequences for an insurance company if they say no, so why not just say no? They’re profit driven, and it’s a Workers Compensation Board style system run by private for-profit insurance companies.

MH: What do you see coming of the costs to insure vehicles in the province? The finance minister stated this will lead to reduced premiums.

JH: Yes, we are in favour of reduced premiums. I want you to know that we are, but there’s a balance you can have. There’s lots of things that we’re suggesting to the government and working together with them. We’re committed to continue working together so there’s a balance.

You can increase those care provisions, but not remove the right to sue in all circumstances, there’s a balance there.

MH: How do you see members of the legal community adapting to this new no-fault system? What will it mean for lawyers catering to the sector?

JH: It’s an enormous loss of jobs. It’s going to be terrible for lawyers, but it’s not about lawyers. It’s about vulnerable Albertans, they’re the people losing the rights here.

Who is going to protect them, who’s going to have a voice for them? Lawyers will lose jobs, but it’s going to fall back onto people, and transfers the costs from insurance company onto everyday Albertans, and ultimately, the health care system and the social assistance system.

MH: These new insurance regulations are not taking effect until 2027. Where do you plan to take this conversation between now and implementation?

JH: We are working hard with the government and presenting options to them to bring this balance. We recognize affordability is a huge concern, but there’s a way to have that reduce those costs and still preserve the rights to sue in many circumstances. That’s what we’re aiming to do.