November 1, 2001

Manitoba Public Insurance celebrates 30 years of protecting Manitobans
Honouring our commitment to provide excellent service & coverage at reasonable rates

Manitoba Public Insurance today is celebrating 30 years of helping protect Manitobans from the human and economic costs of automobile accidents.

During those three decades, the Corporation has become an integral part of the fabric of Manitoba - not only as a provider of accessible and affordable automobile insurance coverage, but as an employer, an investor, a committed corporate citizen and a leader in road safety education.

Today, Manitoba Public Insurance and its staff look back on many proud achievements, including:

• In 2001, MPI returned 91 cents of every premium dollar to Manitobans in the form of claims benefits. Private insurers average about 70 cents.
• Also this year, MPI is putting money back in the pockets of Manitobans in the form of a 16.6 per cent on-time dividend on each premium - that adds up to $75 million!
• Independent studies consistently show MPI premiums are among the lowest in the country. A recent B.C. branch of the Consumers Association of Canada (www.cacbc.com) study showed, in a variety of driver and vehicle situations, MPI rates were lowest in Canada about 90 per cent of the time.
• The majority of school, hospital and municipal building construction projects benefit from MPI's purchase of local bonds. The Corporation has invested more than $1.3 billion in these bonds over the years. Interest earned from these bonds and other investments helps keep premiums reasonable.
• MPI has grown from two offices to operations in 22 locations across the province with direct service to an additional 72 communities. More than 1,200 Manitobans work for the Corporation and our products are available through more than 300 independent insurance broker offices in Manitoba.
• MPI's network of claims centres and offices is the first step on the road to no-hassle repairs. MPI works with the repair industry to certify and upgrade autobody shops resulting in one of the highest concentration of I-CAR gold standard certified shops anywhere.
• Manitoba Public Insurance works to help make our roads safer. Last year, the Corporation invested $6.1 million in road safety, including its High School Driver Education Program.

Why Manitoba Public Insurance Was Created

After considerable study - and some controversy -- Manitoba Public Insurance was created to address problems with the way automobiles were insured and accident victims compensated for their losses under the private insurance system of the day.

Before November 1, 1971, automobile insurance was not mandatory in Manitoba. Vehicle owners who did not have insurance coverage - either by choice or because they were denied coverage by private insurers - put themselves and others at risk of catastrophic financial loss. Motorists were fed up with rising premiums, poor claims service, complex rating systems and discriminatory rating practices.

Manitoba Public Insurance's ambitious goal to provide comprehensive, universal coverage at a cost lower than private insurers was sometimes met with skepticism.

"When I came to Manitoba Public Insurance from the private insurance industry in February 1972, I wondered how long my new employer would survive before its generous universal 'all-perils' insurance would force it into bankruptcy," said Jack Zacharias, Manitoba Public Insurance President and CEO.

"I'm proud to say that we have thrived and grown into the self-financing, stable organization we are today -- and that we still offer universal 'all-perils' insurance," said Zacharias, who began his career at MPI as a claims adjuster in Western Manitoba. "And I'm proud of the positive impact this Corporation continues to have on so many aspects of life in Manitoba."

Gone are the bad old days of uninsured motorists. Today, all Manitoba motorists are entitled to universal basic insurance protection and independent studies show Manitobans consistently enjoy among the lowest rates in Canada for insurance coverage that is second to none.

Fair rates are important to Manitobans but so is the quality of coverage. Under the Personal Injury Protection Plan (PIPP), all Manitobans are protected from financial losses they might suffer because of injury or death resulting from an automobile accident, regardless of whether they own a vehicle.

"Many things have changed in the province and at Manitoba Public Insurance over the past 30 years," said Zacharias. "What hasn't changed is our underlying commitment to providing the best possible service to Manitobans."

Contact:
Carol Standil/Brian Smiley
MPI Media Relations 985-7300
or toll-free in Manitoba 1-888-554-9549