A Promising Reform—or a New Barrier?
Imagine you are driving home one evening when another vehicle rear-ends you at an intersection. You walk away shaken but unharmed—until days later, when neck pain sets in, making it hard to turn your head or sleep soundly.
Under British Columbia’s previous “tort” system, you could have sued the at-fault driver for damages—covering not only medical bills but also pain and suffering, loss of past and future earnings, future care, and other long-term costs. Today, however, you find yourself navigating a maze of ICBC-appointed adjusters, ombudsperson reviews, and Provincial Civil Resolution Tribunal hearings—while your treatments, wage-loss benefits, and legal recourse remain capped under the province’s “no-fault” insurance model.
From Lawsuits to Limited Benefits
When the BC government shifted ICBC to a no-fault model in February 2020, it promised faster claims, lower legal costs, and big premium cuts for drivers. Under this system:
- First-party claims only: Injured drivers and passengers claim benefits from their own ICBC policy, regardless of who caused the crash;
- Restricted lawsuits: Suits against other drivers are barred unless the at-fault party faces a criminal conviction, or the collision results from faulty manufacturing, over-service of alcohol, or similar exceptional scenarios; and
- Fixed benefit schedules: Medical treatments, income-replacement, and rehabilitation benefits are determined by provincial rate tables and subject to periodic reviews—far more rigid than court-approved awards for individual circumstances.
While no-fault insurance can speed up small-injury claims and shave costs, it also eliminates the threat of jury awards, which traditionally incentivized insurers to settle fairly. Without the ability to sue, accident victims lose negotiating power—and too often find their claims capped at amounts that fail to cover ongoing medical needs or income losses.
The Challenge of Disputing ICBC Decisions
Under the new regime, dispute resolution shifts to a three-tiered process:
- ICBC Fairness Officers: Internal review of treatment or benefit denials;
- Ombudsperson’s Office: An independent, but non-binding, review of ICBC decisions; and
- Civil Resolution Tribunal (CRT): A quasi-judicial body that hears monetary disputes up to $50,000—and whose decisions can be slow and limited in scope.
Trial lawyers and advocacy groups warn that these mechanisms fall short of true legal recourse. As one Vancouver Sun analysis noted, “Once you’re inside the ICBC system, you’re beholden to their decision-makers—treatment approvals, benefit levels, and timelines are all at ICBC’s discretion, with no jury to hold them accountable” .
Adjusters often lack medical expertise yet decide which treatments to approve, leaving victims facing abrupt cut-offs for therapies they still need. And since the CRT caps awards at $50,000, catastrophically injured claimants might find themselves under-compensated by hundreds of thousands, with no right to appeal into the higher courts. Real Faces Behind the Headlines
- Festival Crash Victim: A pedestrian struck during a Vancouver street festival could not sue the driver—who pled guilty only to a provincial Motor Vehicle Act offence, not criminal negligence. She must rely on ICBC’s maximum rate schedule for her mounting medical bills;
- Paralyzed Cyclist: Tim Schober, left paralyzed after a collision while biking, is part of a constitutional challenge arguing the system discriminates against those with catastrophic disabilities—denying them lump-sum awards needed for life-altering care; and
- Soft-Tissue Claimants: Registered Massage Therapists report dozens of patients whose pre-approved therapy sessions ran out after just three (3) months, despite persistent pain—forcing them to either pay out of pocket or abandon treatment altogether.
These stories underscore a chilling reality: for many, no-fault means “no real help” once the initial benefits cap is reached.
The Long-Term Toll of Limited Compensation
When benefits stop but injuries persist, the fallout can be profound:
- Financial Hardship: Income replacement is typically set at 90% of pre-accident earnings—yet only for a limited duration. Many workers face gaps in coverage, resulting in inadequate wage-loss benefits;
- Health Impacts: Interrupted or insufficient rehabilitation can lead to chronic pain, reduced mobility, and mental-health decline—conditions far more difficult and costly to treat later; and
- Social and Family Strain: Ongoing medical costs and lost income can strain family resources, leading to housing instability, caregiver burnout, and fractured relationships.
Without the deterrent threat of jury awards, insurers face less pressure to settle generously. The net result is a system that benefits drivers—through lower premiums— at the expense of injured victims, who may never see full justice or adequate care.
Lessons for Alberta’s Pending No-Fault Rollout
Alberta’s government recently announced plans to transition its auto insurance system toward no-fault in 2027. While cost savings and faster claim turnaround are laudable goals, BC’s experience offers a cautionary tale:
- Limited Recourse: Victims in Alberta may face the same uphill struggle challenging benefit denials without meaningful access to court-ordered damages;
- Benefit Caps and Gaps: Rigid schedules for treatment and income replacement risk under-serving claimants with complex and/or long-term needs; and
- Dispute-Resolution Shortcomings: Internal insurance reviews and tribunals cannot substitute for an impartial judiciary—and without a robust appeals path, fairness suffers.
Policymakers in Alberta should consider safeguards including preserving broader tort rights for serious injuries, expanding tribunal awards, and ensuring dispute-resolution bodies have clear timelines and enforcement powers. Otherwise, Alberta risks repeating BC’s misstep—trading one form of premium relief for another form of injustice.
Kindly lobby your MLA and spread the word to help put a stop to NO FAULT in Alberta. Log onto https://fairab.ca/; and https://www.notonofault.com/ for more info on the effects on auto insurance changes in BC and how they will impact you, your family and all Albertans.
https://chng.it/M96xLCQdMW Petition against No-Fault Auto Insurance
References
• Vancouver Sun, “Why accident victims face an uphill battle challenging ICBC decisions under no-fault insurance system,” July 15, 2025.
If you or a loved one have been involved in an accident, you know how devastating the consequences can be. That's why having an experienced personal injury lawyer on your side is crucial to help you navigate the legal system and obtain the compensation you need to cover your medical bills, lost wages, and long-term care in Alberta.
At Pipella Law, we understand the challenges you are facing, and we are here to help. Our team of dedicated car accident lawyers in Calgary will conduct a complete investigation of your case and work with leading consultants to build a strong case on your behalf.