For the second time this year, Manitoba Public Insurance (MPI) will be providing immediate financial relief to its policyholders. MPI customers will receive a total of $69 million, which is about $100 per policyholder. This is in addition to the previous rebate of $110 million in May of this year and the corporation’s recent request of an -8.8 per cent overall rate decrease in its General Rate Application to the Public Utilities Board (PUB).
“As this pandemic progresses, Manitobans continue to be financially impacted by this crisis,” said Crown Services Minister Jeff Wharton. “This second rebate will assist Manitobans as we all work together in getting through this challenging time in our province.”
Policyholders can expect a rebate cheque at the end of December or early January, said Wharton, adding it is estimated about 675,000 cheques will be issued.
This second rebate was made possible by the combination of fewer collision claims, about 20 per cent lower from mid-March to the end of October compared to the previous year and MPI’s forecast of collision frequency remaining favorable into the spring. Rebates will be based on what policyholders paid during this period and is expected to be about six per cent of their annual Basic Autopac premium.
“As a proud Manitoba corporation, we are pleased with what we can do to help during this unprecedented time,” said Satvir Jatana, acting CEO and president, Manitoba Public Insurance. “This rebate to our customers is combination of fewer claims and our continued focus on fiscal prudence. MPI continues to operate in a high efficient manner, aimed at delivering value to Manitobans. Our financial responsibility is reflected in our daily running of our operations and practices.”
Jatana explained that this second rebate should not have an adverse effect on MPI’s financial outcomes moving forward and request for an overall -8.8 per cent rate decrease application to the PUB. If approved, customers will pay, on average, about $110 less in premium. The new rates will take effect April 1, 2021.
Under existing legislation, this rebate requires the approval of the PUB. MPI will apply to the PUB in the coming days.