Alberta sets minor injury cap for 2021, up by 1.3 per cent from last year

Maximum amount adjusted yearly in accordance with annual change under Alberta Consumer Price Index

Alberta sets minor injury cap for 2021, up by 1.3 per cent from last year

The Superintendent of Insurance in Alberta has announced the minor injury maximum amount for 2021 will be $5,365, which has increased by 1.3 per cent from last year’s amount of $5,296.

Interpretation Bulletin Number 01-2020, released by Insurance Superintendent Sherri Wilson and addressed to insurance companies licensed in the province to sell automobile insurance, states the new maximum amount for minor injuries caused by automobile accidents happening in Alberta, effective Jan. 1 to Dec. 30.

The definition of minor injury under the Minor Injury Regulation, Alta Reg 123/2004 was amended last November by Insurance (Enhancing Driver Affordability And Care) Amendment Act, 2020, SA 2020, c 36. The amended definition covers more injuries which do not have permanent negative or life-changing effects on the injured persons.

Under the regulations, the minor injury amount cap should be adjusted per year in accordance with the annual changes in the Alberta Consumer Price Index. The annual maximum minor injury amounts have been set by the provincial government since 2004. The bulletin includes an appendix listing the historical yearly adjustments beginning October 2004.

A blog post by Cummings Andrews Mackay LLP goes over the context of the minor injury amount cap in Alberta. The blog post states that, prior to 2004, less severe injuries lasting from three to six months were set at amounts that varied from $5,000 to $15,000.

According to the blog post, the government first imposed the minor injury limit on non-pecuniary general damages for pain and suffering as a compromise in response to demands by insurance companies during the early 2000s to implement a no-fault system. Back then, the insurers were lamenting the settlement amounts that they were negotiating with persons injured in motor vehicle accidents.

Since then, the profits of insurers have risen, so a review of the current system is necessary, says the blog post. While this review is pending, the minor injury cap is steadily rising in conjunction with annual inflation.

Recent articles & video

Legal Innovation Zone launches program to help legal tech entrepreneurs turn ideas into businesses

Roundup of law firm hires, promotions, departures: February 26, 2024 update

Dickinson Wright, Pettle Law, Regency Law Group act in $10-million commercial case

Tax cases scheduled before Federal Court of Appeal this week

BC Supreme Court deals with complex property and separation agreement dispute

Federal Court criticizes immigration officer for not fully considering depth of abusive relationship

Most Read Articles

Alberta Court of King's Bench upholds tribunal decision on Calgary warehouse racking system

Redefining legal services: MT Align president Linda Beairsto on flexible work and diversity

Cross-border M&A will continue to deal with aggressive antitrust enforcement in 2024, says lawyer

Last chance to take part in the legal fees survey