In a serious motor vehicle collision with serious injuries the innocent victim is very often only able to work part-time or very often unable to work at all. Therefore, the bills add up very quickly and providing the basic necessities of life for him or herself and his or her family becomes a major problem.
Advance Payment in the Past
In the past, the Insurance Act of Alberta had a provision which allowed an insurance company to make an advance payment voluntarily before the settlement of the case. However, the practical reality was that the auto insurance companies in Alberta very rarely made an advance payment. In fact, Handel Law Firm has seen an advance payment on an injury claim occur voluntarily once in the last 25 years.
Advance Payment From Car Accident Injury Claim Now
Thanks to the Fair Practices Regulation which came into force in Alberta on July 1st, 2012, there is a provision whereby the innocent victim may apply to the court against the auto insurance company for an advance payment prior to settlement or trial of the case.
Two factors that are vital for consideration:
- The innocent victim plaintiff must show that the defendant is probably liable to the plaintiff for the amount sought
- Without payment, the innocent victim plaintiff is likely to go without necessities or unlikely to be able to prosecute their claim for damages.
Shannon v. 1610635 Alberta Inc. 2014, Carswell Alta 2134, Alberta Court of Appeal.
Thus an advance payment to the injury victim is no longer up to the auto insurance company for the party at fault, rather the innocent victim can apply to a court in Alberta and have the court order the auto insurance company to make an advance payment.
Handel Law Firm Perspective
Therefore, if you are unable to work as a result of a motor vehicle collision there is now a provision to apply to the court for an advance payment against your anticipated personal injury claim so that you may have funds for the necessities of life and/or funds to pursue the claim itself which is often very expensive as it requires hiring medical experts who must be paid privately as they cannot be paid through Alberta Health when hired for a private lawsuit. This is a significant new provision for innocent victims of motor vehicle injury accidents in Alberta and is a provision which legal counsel should make use of on a frequent basis when liability for the accident is clearly on the defendant.
Handel Law Firm is Alberta’s personal injury law firm serving the smaller communities of Red Deer, Lethbridge, Medicine Hat, Fort McMurray and Grande Prairie. Call now Toll Free: 1-877-844-6910