Calm Compensation: Changes to Alberta insurance claims process ‘fairer and more customer-focused,’ says IBC

Edmonton, Alberta — The Direct Compensation for Property Damage (DCPD) system for Alberta’s auto insurance industry came into effect on Jan. 1, moving the province toward a model that incorporates more fault-free policy options.

As of the beginning of this year, Albertan drivers are able to claim vehicle damage that they are not responsible for to their own insurance company and not that of the at-fault driver.

When the changes were first announced in November, the Insurance Bureau of Canada’s (IBC) western vice-president, Aaron Sutherland explained the motive behind the concept, saying “If someone else hits your car, it requires your insurance company to subrogate those damages back to the insurer of the at-fault driver. That can lead to complications, that can lead to delays, and this (change) eliminates all of that.”

IBC said that the introduction of DCPD will likely result in no change, or a slight reduction in premium rates, for 42 percent of policyholders. On the other hand, 34 percent of drivers, primarily owners of more expensive vehicles, will see rate increases of up to five percent.

In an interview with EverythingGP, IBC western director of consumer and industry relations Rob de Pruis said these changes will even provide further peace of mind to drivers, knowing they will be dealing with a familiar insurer.

“Under this new process, you deal with your own insurance company, the company that you chose to have your insurance coverage with,” said de Pruis.

“What’s really nice is vehicle owners don’t have to do anything. They have their insurance. When they’re involved in an accident, they just contact their own insurance provider, and that repair process starts a lot quicker.”


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One Response

  1. Direct Compensation (DCPD) has been the norm in New Brunswick since 2005 and appears to work well for the consumer, and the repair industry.
    It’s good to see that Alberta and British Columbia are finally catching up with New Brunswick!

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