Open AccessSubrogation in the Rear-View: Evaluating Alberta's Current Approach to Automobile Liability Insurance for Impaired Drivers
Author(s) -
Kendal Gummer
Publication year - 2014
Publication title -
alberta law review
Language(s) - English
Resource type - Journals
eISSN - 1925-8356
pISSN - 0002-4821
DOI - 10.29173/alr50
Subject(s) - subrogation , payment , liability , liability insurance , business , actuarial science , reimbursement , third party , property insurance , insurance policy , economics , casualty insurance , law and economics , law , finance , political science , health care , internet privacy , computer science
In Alberta, automobile insurers are required to indemnify an insured up to policy limits for injury or property damage to third parties for which the insured is liable. Prior to 1 June 1982, insurers could demand reimbursement for third party liability payments if the insured driver caused loss while under the influence of drugs or alcohol. However, the Insurance Amendment Act removed the right of insurers to recover these sums. This article evaluates this amendment by considering its impact on the public policy objectives ordinarily associated with subrogation, and argues that, compared to the previous approach, Alberta’s current system of third party liability coverage better serves the objectives of subrogation.