October 5, 2011

Second Premium Rebate Mailed October 5
Information

Why is this second rebate being issued?
In May 2011 we issued a 45 per cent rebate based on basic Autopac premiums paid using 2009/10 insurance rates. This is the method used for all previous rebates.

After a special meeting attended by Manitoba Public Insurance and Public Utilities Board (PUB) advisors and intervenors, the PUB approved a second rebate using an alternative approach. This approach ensures that everyone whose first rebate was based on less than a full year of premiums is receiving a rebate based on the greater of two calculations.

In other words, this approach means customers receive a rebate based on the calculation that is most advantageous to them and eliminates any potential disadvantage based on their particular vehicle or Autopac insurance purchasing decisions.

Who should expect a second rebate?
Less than one-third of customers should expect a second rebate. Customers whose first rebate was based on less than a full year of premiums may be eligible for a second rebate based on the greater of the following calculations:

• The first rebate was based on premiums paid using 2009/10 rates—that is, based on policies with a start date between March 1, 2009 and February 28, 2010.
• The second rebate is based on premiums paid between those same dates, regardless on when a policy started.

We looked at all customers’ policies to see if the second approach produced a larger rebate than the first approach. If it did, a rebate is being issued for the difference between the two amounts.

Why is this rebate being sent out now?
In June 2011, the Public Utilities Board approved Manitoba Public Insurance's application requesting to vary its Order 43/11 to issue an additional rebate. The Corporation concluded that mailing these cheques during the 90-day period leading up to an election would have been considered contrary to the spirit of The Elections Finances Act. Therefore the rebate cheques will be mailed today, the day after the provincial election.

What if I don’t receive a cheque?
Please allow sufficient time for Canada Post to deliver your cheque. If you don’t receive a cheque, it means that you have already received the full amount you were eligible for in May 2011.

How much is the second rebate?
The rebate is based on 45 per cent of basic Autopac premiums. It excludes any premiums paid for optional products, as well as registration fees and financing costs.

Approximately 180,000 customers are receiving a cheque. Of these cheques:

• 120,000 are for amounts greater than $20
• 60,000 are for amounts between $2 and $20

In addition, approximately 7,000 customers will have a credit of less than $2 placed in their Manitoba Public Insurance account.

Why is Manitoba Public Insurance issuing and mailing cheques for small amounts?
During the special meeting with the PUB, all parties agreed that although there may be alternatives to issuing so many small cheques (60,000), it was important to complete the 2011 rebate process using the same approach as in the past.

Should there be rebates in the future, consideration will be given to alternatives that are more environmentally sensitive and less costly.

What types of vehicles are eligible for a rebate?
All types of vehicles for which basic Autopac is paid are eligible, including motorcycles and trailers. Dealer plate policies are also eligible.

What if I have questions about how my rebate was calculated?
Please contact your Autopac agent with questions about your rebate.

What if I’ve moved?
Any Autopac agent can tell you if the address we have for you is the correct one. If you didn’t report your change of address, your cheque will be sent to the last address we have on record. It will either by forwarded to you by Canada Post, or returned to Manitoba Public Insurance. Who hold these cheques until owners claim them. To update your address, please visit any Autopac agent.

© 2011 Manitoba Public Insurance