| April
4 , 2000 Rates and coverages change for optional motorcycle insurance Rates will drop for claims-free riders Starting this year, it will be less expensive for most motorcycle owners who want to top up their basic coverage with optional Special Risk Extension (SRE) coverage from Manitoba Public Insurance (MPI). Working in consultation with the Coalition of Manitoba Motorcycle Groups (CMMG), MPI has developed changes to rates and coverage options to better meet the needs of motorcycle riders. "Motorcycle owners, like everyone else, want to be rewarded for claims-free riding," said Marilyn McLaren, Vice-President of Corporate Insurance Operations. "This new system is more fair because it puts greater financial responsibility onto those who have had multiple claims and taken money out of the system, and considerably benefits those who haven't had claims." As of March 1, 2000, extension third party liability and reduced collision deductible coverages are now subject to the merit discount program. Premiums for customers with favorable driving and claims histories will be reduced substantially and surcharges will be applied to customers with less favorable riding histories. For example, a customer with the maximum merit discount who purchases $2 million third-party liability coverage will see the rate for that fall from $104 to $20 this year. The premiums for claims-free owners who want comprehensive coverage to protect their motorcycles from fire, theft and vandalism are also considerably reduced and the deductibles are lower. Additionally, premiums for comprehensive coverage will now be based on the value of the motorcycle insured, recognizing the wide spread of value between different makes and models. A customer with a 1995, 500cc bike with a declared value of $5,000, a $200 deductible and one comprehensive claim in three years could save $230 on his or her comprehensive coverage this year. "We hope that lowering the premium for those who are claims free, and even for those who have only one or two claims over three years will mean that more motorcycle owners will be able to purchase comprehensive coverage for their machines," said McLaren. "And once again, those with no or fewer claims will be rewarded and those with higher claims will be expected to shoulder more of the cost." "The executive of the CMMG appreciate the work that has gone in to the changes to the extension plan and also appreciate being involved in the process," said CMMG president Terry Johns. "We all hope this is the beginning of a closer relationship with MPI." Customers with existing policies don't need to do anything to take advantage of the new rates. Existing policies will be automatically changed to the new rates and coverage deductibles and any premium refunds will be sent to the registered owner.
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