Manitoba Public Insurance application for rate decrease should be more: consumer advocate

One other rebate cheque from Manitoba Public Insurance coverage (MPI) could possibly be on the best way within the new yr, together with decrease insurance coverage charges kicking in as early as April.

MPI is asking for a 1.2-per cent fee lower for Manitoba drivers subsequent yr and can also be seeking to bump up its rebate request to $335 million from the unique forecasted quantity of $202 million.

“MPI continues to display robust monetary efficiency, which has resulted in its making use of for a 3rd consecutive fee lower, and in time, making use of for a 3rd consecutive buyer rebate,” Crown Companies Minister Jeff Wharton stated.

However lawyer with the Public Curiosity Legislation Centre Katrine Dilay says it’s really a rise disguised as a lower.

“Final yr, MPI requested for basically what quantities to a 5 per cent low cost on charges. In order that was included within the giant fee lower final yr (8.8 per cent),” Dilay stated.

“And MPI is asking to take away that low cost this yr, so in impact, our charges are going to go up by 3.8 per cent on common if MPI will get what it’s asking for.”

Dilay says the low cost was included in charges final yr to return extra capital that MPI had within the financial institution.

The Public Utilities Board is holding a three-week listening to that started Tuesday.

The Customers’ Affiliation of Canada (CAC Manitoba), says it would argue on behalf of shoppers that MPI over-collected insurance coverage premiums and needs to be rebating roughly $665 per driver to its clients.

As a substitute, the CAC says MPI needs to switch a few of that surplus to a different a part of the corporate to cowl prices that are normally authorities’s duty, lowering the common rebate to only $496 per particular person.

“Our insurance coverage premiums are imagined to fund insurance coverage traces of enterprise, interval,” Gloria Desorcy, Govt Director of CAC Manitoba stated. “As ratepayers we count on MPI to supply full rebates to drivers and we’ll make that case earlier than the PUB.”

If authorized, rebate cheques might be mailed out within the winter of 2022. The typical cheque quantity and what number of cheques might be mailed might be introduced within the coming months.

A call from the Public Utilities Board is predicted in December.

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MPI information request for an additional buyer rebate in early 2022