Discussion Paper:

Comparative analysis of the Claims Agreement, Intercompany Settlement Chart (Appendix to Rule 10), and the new Direct Compensation for Property Damage Regulation, AR 132/2021, which comes into effect on January 1, 2022 (the “New Regulation”)

Written by: G. (Guy) Valle

This paper discusses the new Alberta Direct Compensation for Property Damage Regulation, AR 132/2021 (the “New Regulation”) and compares it with the existing IBC Claims Agreement (“Claims Agreement”) and The Chart included in the Appendix to Rule 10, and references the Ontario Fault Determination Rules, RRO 1990, Regulation 668.


  1. The provisions of the New Regulation and the Claims Settlement are similar but have important distinctions.  Insurance representatives handling physical damage, accident benefits and bodily injury claims should familiarize with the New Regulation, and how it will interact with other statutes and Regulations.
  2. In the New Regulation, Alberta adopted most of the rules included in the Ontario Fault Determination Rules, RRO 1990, Regulation 668. There will be a period of time before legal disputes reach Alberta Courts and interpret the New Regulation.
  3.  This appears to be the first time a Regulation in Alberta defines “thoroughfare” and prescribes how fault in parking lots will be determined following a car accident.
  4. Notably missing are specific rules with respect to traffic circles and “Innocent Third Parties”, as referred to under Rule 7 of the Claims Agreement.
  5. The New Regulation does not specifically address situations where an individual carries no insurance at all, but may have a valid physical damage claim, i.e., rear-end.
  6. Insurance companies are now specifically required to determine the degree of fault in respect of car accidents.
  7. There is no specific mention as to whether insurers will require a Final Release upon settling the property damage claim under the New Regulation, presumably because the insurer will be dealing with their insureds.
  8. The New Regulation will not replace existing rules of the road.  Rather, the New Regulation provides a set of rules for insurers to determine fault, not legal liability.
  9.  In case of unresolved disputes, the parties will be required to pursue a legal action against their own insurer through regular litigation.

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