Recently a bulletin penned by the Superintendent of Insurance of Alberta stated that diminished value losses are claimable through a first-party (against your insurer) process called the "Dispute Resolution Process" (Insurance Act of Alberta, pg. 281, Section 519 "Dispute resolution").

In order to begin the dispute resolution process, as outlined in the Alberta Standard Automobile Policy (SPF No. 1) (pg. 16-17, Statutory Conditions Section 4(9)) under which all Alberta policies fall, you must make a written "specific demand" to begin the process, as well as supply a "proof of loss" form to your insurer. In order to complete this "proof of loss" form, you will need to know the amount of lost value you are claiming. Therefore, prior to submitting these items, it is recommended for you to hire an appraiser (such as 'Diminished Value of Canada') to inspect your vehicle, determining the value of diminished value caused by the damage and repair history.

After submitting these items, the insurance company will typically hire their own appraiser to reevaluate the claimed loss and review your provided value. If the values provided by the two appraisers are not exactly equal (which is the result in most cases), the two appraisers meet to discuss the discrepancies and work to arrive at a final reasonable value. If the appraisers cannot agree on said value, an "umpire" (Insurance Act of Alberta, pg. 281, Section 519 Subsection 5) is chosen by the two appraisers. If the appraisers cannot agree on a suitable umpire, both appraisers submit the names of three candidates to the Superintendent of Insurance of Alberta, who will then select an umpire for the case. The umpire will review the evidence provided by both parties and arrive at a final value.

Once a final value of loss has been determined by either the two appraisers or the umpire, your insurance company has "...15 days after the decision is rendered" (Alberta Standard Automobile Policy SPF No. 1, pg. 17, Statutory Conditions Section 6(1)) to deliver your claim payment.