“Is my claim capped?” is one of the top questions we get at Litco Law, followed by “What is a claim cap?” and “What does it mean if a claim is capped?” In Alberta, the government has limited or “capped” the compensation that an injured car accident victim can receive for certain minor injuries. The legislation outlining the limit is the Alberta Minor Injury Regulation (MIR) , and along with the Diagnostic and Treatment Protocols Regulation, it is responsible for a great deal of confusion among the public and within the legal community. One of the main issues is the definition of a “minor injury.” The purpose of this guide is to clear up confusion, help Albertans understand the current state of the law, and explain how this cap may affect your personal injury claim.
Why Is There a Cap?
In creating the cap, the Alberta Legislature was trying to balance the rights of injury victims with the increasing costs of providing and purchasing insurance. In the years leading up to 2004, automobile insurance premiums were on the rise, as they often are. Insurance companies, through lobbying and public relations, promoted the story that the rise in premiums was due to an increasing number of personal injury claims and a rise in the cost of processing and paying those claims. The promise was that a cap on the amount of money accident victims could receive for “minor injuries” would reduce costs and therefore premiums for Alberta drivers. The cap may have reduced the number of injury claims in Alberta, but the promise of reduced automobile insurance premiums has proven false for many Albertans and short-lived for the rest. The greatest consequence of the cap is that it has denied many legitimately injured Albertans the compensation they would normally be entitled to, at their own and taxpayers’ expense, while benefiting insurance companies. Unfortunately, most Albertans are unaware of the many other injustices under the cap until they are seeking compensation for accident injuries. For example:
- In certain circumstances, you are forced to use your own medical benefits to cover the cost of treatment for injuries caused by someone else’s negligence. You cannot claim back those lost benefits from the person who injured you.
- You can be forced to undergo a Certified Medical Examination by a government-approved doctor, usually of the insurance company’s choosing. Based on the opinion of that doctor, who has never met you before and has no in-depth knowledge of your medical history, you can be denied medical treatment.
In the case of Certified Medical Examinations, the Courts have been harsh in their criticism of the practice and of certain doctors who perform them incorrectly(i). Thankfully, Alberta Courts have been righting many of the wrongs caused by the cap, and this is the first of many examples that follow below.
Money for Injuries
If you were injured in an accident in Alberta that was not your fault, you are entitled to make a claim for compensation against the person who injured you. The money you receive falls into two categories:
- General damages – Money for things that don’t have a price tag, such as pain and suffering.
- Special damages – Money for things with a price tag, such as medical treatment or lost income.
Important: Many people mistakenly believe the cap applies to both general and special damages. In reality, the cap only applies to pain and suffering for certain minor soft-tissue injuries and minor psychological issues.
What Is a “Minor Injury”?
Under the Minor Injury Regulation, a minor injury is defined as a sprain, strain, psychological, or WAD (Whiplash Associated Disorder) injury caused by a motor vehicle accident that does not result in a serious impairment.
Sprains and Strains
- Sprain: Stretching or tearing of ligaments (tough bands connecting bones). Commonly occurs in the ankle.
- Strain: Stretching or tearing of muscles or tendons. Often occurs in the lower back or hamstring.
- Severe sprains and strains sometimes require surgery.
Alberta categorizes sprains as first, second, or third degree based on severity.
Whiplash (WAD)
The WAD classification system is used to categorize neck injuries from rapid acceleration or deceleration:
- WAD 0: No pain, no signs of injury.
- WAD 1: Neck pain, normal range of motion, no swelling or spasm.
- WAD 2: Neck pain with limited range of motion, muscle spasm, or tenderness.
- WAD 3: WAD 2 symptoms plus neurological signs (numbness, weakness).
- WAD 4: Fracture or dislocation.
Alberta’s cap on injury damages applies to WAD 1 and 2 only.
Misconceptions About the Cap
- Only WAD 1 or 2 injuries are capped: Injuries outside this category—such as concussions, fractures, PTSD, or serious impairments—are not capped. Even WAD 1 or 2 injuries may fall outside the cap if they cause chronic pain or serious impairment affecting work, school, or daily activities.
- Insurance companies may not be fair: Your own insurance company must act in “good faith,” but other parties’ insurers have no legal obligation to be fair to you.
- The cap doesn’t mean only the worst injuries get full compensation: Most strains, sprains, and whiplash injuries falling within the cap will receive the full capped amount, based on historical court valuations.
How Much Is the Cap?
The cap was originally set at $4,000 in 2004 and is adjusted annually for inflation. As of 2025, that number is $6,182.
If your claim is already in progress, the updated cap may not affect you. Compensation for pain and suffering is based on the amount set in the year of your accident.
Is Your Claim Capped? Speak With a Litco Law Lawyer
Determining whether your claim is capped depends on your injuries, medical history, and the professional opinions of your medical providers. Albertans who assume their claim is capped, or who are misinformed by an insurance company, are often surprised at the compensation they are entitled to.
Our legal team will protect your rights, handle complex legal work, and allow you to focus on recovery. Consultations are free and without obligation, and if you choose to proceed with a claim, you don’t pay until your case is resolved.
Call or email us today to find out if your claim is capped.
