Grassroots members of Alberta’s United Conservative Party are mounting significant opposition to the province’s planned shift to a no-fault auto insurance system. The reform, scheduled for 2027, would eliminate most avenues for injured drivers to sue at-fault motorists and instead require individuals to seek compensation from their own insurers. While insurers have supported the change as a way to stabilize premiums and reduce litigation costs, many party members argue it would erode accountability and restrict the legal rights of accident victims.
A key resolution driving the internal resistance was put forward by Edmonton lawyer Karamveer Lalh, who contends that the ability to take negligent drivers to court is a fundamental right. The motion has gained considerable traction ahead of the UCP’s policy convention, raising the possibility that party members could formally direct the government to halt or modify the reform. If adopted, it would create political pressure for the province to reconsider the overhaul, despite the work already underway to transition to the new system.
For insurers and brokers, the growing pushback introduces uncertainty into long-term planning. Companies have been modelling future claim volumes, costs, and premium impacts under the expectation that no-fault rules would come into force. A delay or policy reversal would upend those assumptions, forcing the industry to adjust its forecasts and risk planning. Conversely, if the province proceeds as intended, insurers expect more predictable cost structures — though they will still need to manage transitional challenges as the reforms roll out.
