Industry Wire

TRALA Supports Insurance Primacy Reversal Regulations in Alberta

Long-sought vicarious liability reform in Alberta, Canada is one step closer to full implementation. On October 28, 2009 TRALA submitted comments to the Alberta Ministry of Finance in response to draft regulations the ministry released to TRALA and other stakeholders in the ongoing vicarious liability reform efforts. The regulations provided to TRALA for review would reverse insurance primacy in Alberta so that operators of rented and leased vehicles become the primary insured in the case of a claim, rather than the vehicle lessor. TRALA’s Government Relations Committee and general counsel reviewed the regulations and were supportive of the intent to reverse insurance primacy and agreed that the language provided would accomplish that goal. A letter to assistant deputy minister Dennis Gartner stated TRALA’s support for the regulations in their current form and appreciation for the opportunity to review.

TRALA has been working with the government in Alberta over the past few years to reform previously unlimited vicarious liability laws there. In December 2007, the legislative assembly of Alberta passed Bill 49, called the Traffic Safety Amendment act of 2007 which capped vicarious liability exposure to owners of leased vehicles at $1 million. Through subsequent legislation passed in June 2009, TRALA was successful in securing the same protection for owners of short term rental vehicles as well. The regulations to reverse insurance primacy are the latest step before full implementation of vicarious liability reform in Alberta.

TRALA has been assured that the caps on vicarious liability for leased and rented vehicles and the reversal of insurance primacy will be implemented soon. The expected date has been delayed until sometime in January, 2010. To see a copy of the regulations to reverse insurance primacy in Alberta, please click here. A copy of TRALA’s letter to the Alberta Ministry of Finance in response to those regulations can be seen here. For more information about vicarious liability reform in Alberta, contact TRALA’s Tom James at 703-299-9120 or at tjames@trala.org.