Alberta Regulation 202/2026, the Permanent Impairment Regulation, establishes a detailed framework for calculating and determining permanent impairment benefits under the Automobile Insurance Act. The regulation provides insurers with standardized rules for assessing injuries arising from automobile accidents. It sets out when an impairment is considered permanent, distinguishes catastrophic from non-catastrophic injuries, and prescribes percentage-based methods for evaluating a broad range of physical and psychological impairments.

The regulation defines permanent impairment as a permanent anatomicophysiological deficit, a catastrophic injury, an impairment specifically described in the regulation’s assessment tables, or another permanent physical or mental impairment. An impairment becomes permanent when, after sufficient time for optimal tissue repair, it has become static or stabilized and is unlikely to change significantly through further therapy. Insurers cannot pay a permanent impairment benefit until this threshold is met, although the benefit is calculated as of the date of the accident.

For catastrophic injuries, the regulation identifies specific qualifying conditions and establishes a separate benefit payable in an amount set by the Minister. Catastrophic injuries include severe quadriplegia or paraplegia, certain combinations of major amputations, significant vision loss, serious functional alterations of the brain, qualifying psychiatric conditions, extensive full-thickness burns and combinations of serious impairments reaching specified percentage thresholds.

For non-catastrophic injuries, the regulation creates a permanent impairment rating consisting of two possible components: the permanent impairment component and an enhancement component. The permanent impairment component is determined using extensive tables covering the musculoskeletal, nervous, maxillofacial, visual, urogenital, respiratory, digestive, cardiovascular, endocrine, hematopoietic, psychiatric, vestibulocochlear and skin systems.

Where an insured has multiple impairments, the regulation prevents the percentages from simply being added together. Instead, insurers must arrange the percentages from highest to lowest and apply a combined-values formula, C = A + B(1 − A), successively. The resulting percentage becomes the permanent impairment component, with fractional percentages rounded to the nearest whole number and .5 rounded upward.

An enhancement component applies where an accident impairs symmetrical body parts, or a body part symmetrical to one that was already permanently impaired. The enhancement equals 25% of the percentage associated with the more severely impaired symmetrical part, subject to specified rules.

Alberta (202/2026) August 18, 2026
Disclaimer: Insights are for informational purposes only and does not reflect RRI’s official position or constitute legal opinion.