View From the Legislature

In this most unusual of years, there is at least one unusual happening that should be welcomed by most Manitobans. Rebate cheques from Manitoba Public Insurance (MPI) have happened occasionally in years past. Earlier this year MPI was able to issue approximately $110 million in rebates to policyholders in the province. And earlier this week, the crown corporation was able to announce that it will be issuing a second rebate with a cumulative total of $69 million to MPI customers. This most recent payment will amount to about $100 per policyholder depending on the annual cost of their vehicle insurance.

While policyholders would no doubt appreciate the refund in any year, it may be especially welcomed in this year where many families are struggling on a variety of different levels. Although it may be needed and appreciated, it is really made possible because there has been a lower number of collisions and claims this year. Both in the spring and this fall, the lower number of expected claims has allowed MPI to return these funds.

Some may question if this money would be better applied or spent elsewhere? This is a legitimate question to ask about any financial measure related to government. In this case, MPI is the primary provincial insurer for vehicles in Manitoba. Because there was a significant surplus, it essentially means that policyholders paid more than was required and so it makes sense that they receive the refund. The rebate request is being sent to the Public Utilities Board and it is expected that following approval about 675,000 cheques will be issued by the end of December or early January.

In addition MPI has, through their financial projections and modelling, determined that they are able to apply for a general rate reduction of -8.8% which, if approved by the Public Utilities Board, will reduce for the average MPI customer their vehicle insurance by $110. These new rates would come into effect on April 1, 2021.

For many Manitobans, this year has come with a series of unwelcome surprises. There will be many who will be happy to see 2020 draw to a close at the end of this month. But because Manitoba drivers have seen fewer collisions this year, there is the positive news of dual rebates and lower premiums in 2021. Details of the second rebate will be available in the coming weeks and Manitobans can also check the MPI website at www.mpi.mb.ca/Pages/Home.aspx for further information.

As the roads get icy and driving conditions change, lets all do our part to reduce collisions not simply because it benefits policyholders financially, but because it helps keep all of us safe.