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Letters
to the Editor June 24, 2002 Dear Editor, Mr. Long makes several incorrect assumptions in his June 24 letter to the editor about motorcycle insurance premiums that need to be corrected. Every year, Manitoba Public Insurance is compelled to go before the Public Utilities Board to justify the rates it charges for all classes of vehicles. Two years ago, the PUB looked specifically at the way Manitoba Public Insurance calculates motorcycle rates and supported its methodology as being fair and appropriate. In fact, the PUB rejected the CMMG's proposed alternate premium calculation method because it was unfair to other motorists. As with all vehicle insurance premiums in Manitoba, motorcycle rates are driven by claims costs. Over the last eight years, motorcyclists have paid $21.6 million in premiums and collected $39.6 million in accident claims benefits. That means family passenger vehicles continue to subsidize motorcyclists. That's not fair. Motorcycles represent a higher risk because they get into more accidents and the average cost of a motorcycle crash is significantly higher than the average for other vehicles. For example, the average at-fault passenger vehicle claim is $3,400 and while the average at-fault motorcycle claim is $19,000. Mr. Long also states that motorcycle sales in Manitoba are falling. In fact, the latest statistics by Motorcycle and Moped Industry Council of Canada show that Manitoba new bike sales lead the nation and have tripled over the past decade. Finally, Mr. Long assumes that private insurers would vie for motorcycle business. That is not the case. Private insurers in other jurisdictions have happily charged rates higher than those in Manitoba for coverage that is markedly inferior. Private insurers sometimes exercise the option of not offering coverage at all to motorcyclists. Fortunately, that's not the case in Manitoba. Sincerely, John
Douglas
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