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December
5 , 2000 One-time discount of $75.4 million; Long-term safe drivers given break The average Manitoba passenger vehicle owner will pay $106 less when they renew their Basic Autopac after March 1, 2001 (see Bar Graph). The Public Utilities Board (PUB) today approved a one-time, 16.6 per cent discount on all Autopac policies purchased or renewed beginning March 1, 2001. Some customers will not see the changes until February 2002 due to staggered insurance renewals. "Normally, the number of people who pay more for their Basic Autopac is about equal to those who pay less,'' said MPI President and CEO Jack Zacharias. "However, this one-time discount means every vehicle owner in every region of Manitoba will share in our success with a 16.6 per cent discount. "That discount totals about $75.4 million - the largest financial break any Crown has ever passed on to Manitobans." It is the third straight year that most Manitoba motorists will pay less for their Autopac. For Manitoba's 750,000 policy holders the average discount, including all categories of vehicles, will be about $91. While the discount will be applied to all policies, the amount any individual saves will vary to reflect their driving and claims record, the make and model of vehicle they drive, how that vehicle is used and where the owner lives (see example). The one-time discount will ensure that Manitobans continue to pay among the lowest auto insurance premiums in the country while maintaining coverage that is second to none. Recognition for long-term safe drivers The PUB also approved MPI's plan to recognize long-term safe drivers. Effective March 1, 2001, vehicle owners who are six or more years claims-free will not lose their vehicle insurance merit discount after their first at-fault accident. Instead, a one-time accident surcharge will be applied. In virtually every case, this fee will be less costly than the loss of a vehicle insurance premium discount on one or more vehicles owned by the at-fault driver. "Manitobans have told us that they want recognition for their years of safe driving," said Marilyn McLaren, Vice President of Corporate Insurance Operations. "But at the same time, they want to ensure people who cause accidents pay more. This change meets both needs." Most policyholders will pay less The overall impact of the PUB Ruling on the total vehicle population will result in:
Motorcycle rates The PUB also approved the introduction of seasonal motorcycle rates. MPI proposed the change after consulting with motorcycle representative groups. The change will reduce motorcylists' initial cash outlay by 58 per cent and remove the need for policy cancellation and refund at the end of the riding season. Although the rate is referred to as "seasonal," once plated, the motorcycle is insured for the full year. Some motorcycle riders will see premium differences because of changes that will better recognize the risk differences between different types of motorcycles, such as touring and sport or "bullet" bikes. As a result of adopting these differentials, rates for 364 motorcycles (all sport) will rise and rates for 6,137 motorcycles will decrease. Other highlights One-time accident surcharges, which are designed to ensure those who cause accidents pay a greater share of claims costs, will be adjusted upwards. For example, an at-fault driver will incur a $200 surcharge, up from $150, for the first accident. Additional charges associated with Driver's Licence demerit points, which acknowledge the fact that motorists convicted of moving violations pose a greater safety and claims risk, will also be increased by $50 for each step on the scale. A driver must accumulate six or more demerit points before surcharges apply. The PUB approved MPI's request to recognize the risk associated with cars used for courier and light delivery purposes. These vehicles will move from the broad-based all purpose category to a new common carrier passenger vehicle (local) use category. Today's PUB ruling will come into effect March 1, 2001. Due to staggered individual renewal dates, some customers will not see these changes until February 2002. Contact:
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