September 12 , 2008

Manitobans asked to comment on proposal to improve merit/demerit system

Manitoba Public Insurance proposing simple new model for rewarding safe driving

Manitobans are being asked for their feedback on proposed improvements to Manitoba’s merit/demerit system, which influences how much drivers pay for their vehicle and driver insurance.

Manitoba Public Insurance is seeking public feedback by October 10 so the public auto insurer can present the proposal to the Manitoba government later in the fall.

"We want to build on the best features of the current system while removing the confusion and complexity that limits its effectiveness," said Manitoba Public Insurance Chief Executive Officer Marilyn McLaren.

"For years, Manitobans have been telling us that the safest drivers deserve higher financial rewards, and we certainly agree. This new model would make those rewards possible.”

If accepted by government, the proposed model would replace the current discount and surcharge rules with a plan that is simpler and more effective.

“Now that we run driver licensing and auto insurance, we see the opportunity to create one clear, consistent set of rules for both systems,” McLaren said. “We want to make it easier for Manitobans to see how their driving affects their insurance premiums.”

The basis of the system would be a simple up-and-down scale. Manitobans who drive safely would earn more merits and move up the scale to higher insurance discounts. Those who engage in higher-risk driving behaviour – like at-fault collisions and traffic violations – would move down the scale. As higher-risk drivers moved down, they would pay additional premiums to reflect the additional risk they bring into the insurance pool.

"We would put this scale right on everyone’s insurance and licence renewal form so they could see exactly where they are heading,” McLaren said.

The new model would provide several additional incentives for Manitobans to drive safely:

• Instead of just five merits, Manitobans would be able to earn up to 15 merits for continued safe driving.
• With more merit levels, it would be possible to have more “shades of grey” for rewards and penalties. Subject to Public Utilities Board approval, very safe drivers could earn even better discounts after reaching the highest point on the scale.
• Drivers would earn one merit for every year of driving with no at-fault collisions or traffic violations, instead of one merit for every two years.

"We know Manitobans are proud of their driver's licence merits, so we want to make it possible for them to earn even more. At the same time, we want to make it much easier for them to understand how merits and insurance savings are earned, and how higher-risk driving behaviour can make them disappear."

Manitobans are invited to visit the Manitoba Public Insurance website, www.mpi.mb.ca, where the company has posted a discussion paper, presentation and online survey. The discussion paper is also available by calling 985-7000, toll-free 1-800-665-2410, TTY/TDD 985-8832.

Manitobans can provide written responses to the proposal by way of e-mail or post.

Later this month, the corporation will also set up information displays in local shopping malls across the province. Representatives from the corporation will be on hand to discuss the proposed model.

Watch for the displays in these locations:

- 30 -

Contact: