Hybrid Tort/No-Fault: A Compromise Plan

This St. Patrick's Day blog post is written by dual Irish-Canadian citizen Mark McCourt, our firm founder and principal counsel:

The United Conservative Party was first elected as Alberta's government in April 2019, and since that time has been lobbied persistently by Jason Kenney's former chief of staff and former press secretary, both of them on behalf of the Insurance Bureau of Canada. McCourt Law Offices has been publishing blog posts throughout the UCP's reign, urging our government to preserve the rights and freedoms of ordinary Albertans to recover compensation from the insurers of reckless drivers. The Canadian Bar Association has described this crucial set of longstanding traditional civil legal rights as "one of the most vital hallmarks of the Canadian system of justice."

Premier Kenney stepped down before the UCP's first term in office ended, and Premier Danielle Smith led the UCP to a second election victory in May 2023. Since that time, I have penned 10 Postmedia columns (5 in the Edmonton Journal and 5 in the Calgary Herald) on the issue of auto insurance reform:

1) Journal June 21, 2023 Don't Take Away Alberta Drivers' Right to Sue

2) Herald March 1, 2024 Auto Insurance Needs to Work For, Not Against, Alberta Motorists

3) Journal May 7, 2024 Albertans Should Say No to No-Fault Auto Insurance

4) Herald May 24, 2024 Insurers Rake in Huge Profits Despite Government Promises to Act

5) Herald July 31, 2024 Alberta at Odds on Auto Insurance Costs, Compensation

6) Journal August 21, 2024 Alberta Needs to Reform Insurance Within the Current System

7) Herald November 2, 2024 Will Government Side with Alberta Motorists or Insurers?

8) Journal November 7, 2024 No-Fault Auto Insurance Could Lead to UCP's Election Downfall

9) Herald January 18, 2025 UCP to Blame for No-Fault, Which Only Benefits Auto Insurers

10) Journal February 24, 2025 Alberta Should Do a U-Turn on No-Fault Insurance

To date, it would appear that my efforts have been to no avail: as reported in my previous 2025 blog posts (in January and February), the UCP government on November 21, 2024 announced auto insurance "reform" intentions to raise our rates in 2025 and 2026, and then to rip away our rights to monetary compensation from the insurers of negligent drivers who wrongfully injure us, starting in January 2027. While given the implementation timeline, this proposed annihilation of Alberta auto accident tort law likely won't affect me professionally in light of my plans to retire on my 60th birthday in December 2026, the draconian deforms if enacted most certainly will personally affect me and all of my fellow Albertans, as auto insurance policyholders and/or as potential victims of careless motorists.

Severely normal Albertans will see if the UCP government does the right thing and reverses course on its tort deform plans, and specifically on its "worst possible option" privately-delivered no-fault scheme set to begin just in time for the next provincial election in 2027. It's not too late for our provincial government to slam on the brakes and avoid disaster.

Numerous polls including the government's own survey of Albertans last year show overwhelming opposition to the ill-advised idea of replacing our existing tort law system with a no-fault regime. Furthermore, insider intel has revealed that, led by Justice Minister Mickey K. Amery, UCP cabinet voted 13 - 11 against the unelected TBF bureaucracy's politically suicidal no-fault proposal last November, and yet the Premier and her Finance and Affordability ministers forthwith forged ahead with their no-fault press conference anyway. This was a serious error in judgment, but not an irreparable one. To her credit, the Premier admits she makes mistakes (as do we all). She needs to fix this one, and better sooner rather than later.

My firm's blog post last month, titled No to No-Fault: Here's the Off-Ramp, outlined a 12 point "Accident Victims/Insurance Policyholders Advocate Plan" consisting of thoughtful, conservative alternatives to the insurance policy bureaucrats' unpopular no-fault pitch. Item 6 of the AVIPA Plan proposes expanding choice for policyholders and saving them premium dollars by reducing compulsory Section B benefits, and offering consumers the option to purchase additional excess no-fault coverage (which of course could include so-called "Care-First" type coverage). However, if for some reason (a sorely mistaken impression that compulsory unlimited no-fault medical expense benefits are a constitutional imperative, for example) the government is wed to the key component of Care-First, namely mandatory unlimited no-fault medical/rehab benefits coverage for life, item 6 of the AVIPA plan could be replaced by this key component of Care-First for a modest annual extra cost to consumers estimated at $30.

The hybrid tort/no-fault compromise plan described in the preceding paragraph (ie., the AVIPA Proposal from our blog post last month, amended by replacing item 6 with the key component of the Care-First pitch, namely the unlimited medical and care-related no-fault benefits) would preserve fundamental tort rights for victims of reckless drivers while enhancing care benefits for anyone injured in a motor vehicle accident in Alberta, and would save good Alberta motorists on average an estimated $440 per year on our auto insurance premiums. As renowned Alberta economist Dr. Jack Mintz wrote last October, a month before his scholarly article was ignored by Finance Minister Nate Horner (who is not to be confused with former Finance Minister-turned insurance lobbyist Doug Horner, whose firm has also lobbied his cousin Nate's Finance Department on behalf of a company called Alberta Surgical Group), "A hybrid system of no-fault insurance and tort insurance is the best option that would maintain fairness as well as improve efficiency."

As matters of fundamental justice for Albertans are at stake, I call upon the Premier to please transfer conduct of this file from Finance Minister Nate (not Doug) Horner over to Justice Minister Mickey Amery, so that he can carefully consider this compromise hybrid tort/no-fault proposal and provide Executive Council and UCP Caucus with his recommendations. In anticipation of the Honourable Premier's favourable response, on the 1st day this month I emailed the Justice Minister a letter copied to the Premier, to Minister Brian Jean (the other lawyer in UCP cabinet), and to select others regarding this important issue. Thank you.

About the author: Alberta Venture magazine recognized Mark McCourt as one of Alberta's 50 Most Influential People in 2004 as a result of his audacious advocacy on behalf of auto accident victims and insurance policyholders.