June 3, 2011

Manitoba Public Insurance requesting Public Utilities Board to approve additional rebate

Manitoba Public Insurance is proposing to pay an additional rebate, in response to customer concerns, and will soon submit an application to the Public Utilities Board, requesting the board vary its Order 43/11, regarding the recently distributed rebate.

Over the past month, Manitoba Public Insurance, following the direction of the Public Utilities Board Order 43/11, distributed to ratepayers a 45 per cent rebate of vehicle premiums paid in the 2009/10 insurance year.

The Corporation is requesting permission to issue an additional rebate of $16 million, which is five per cent of the rebate of $320 million. The most recent rebate, like previous rebates, was calculated on premiums paid in the 2009/10 insurance year. 

“In effect, the Corporation is asking that all ratepayers receive the “greater of” a calculation based on both premiums paid in fiscal year 2009/10 and on the 2009/10 insurance rating year,” Marilyn McLaren, president and CEO of Manitoba Public Insurance said today.

“This will ensure affected customers receive a rebate based on the calculation that is most advantageous to them and eliminates any potential disadvantage based on their particular vehicle or Autopac insurance purchasing decisions.”

Earlier this week, CAA Manitoba and the Consumers Association of Canada (CAC), requested that the Public Utilities Board review the most recent rebate and the method used to determine the amount of rebates to customers.

“The Corporation fully agrees and shares the views of CAC and CAA Manitoba that this matter deserves the attention of the PUB and other participants,” said McLaren. “In addition the corporation will be asking PUB to consider using this “best of two calculations” approach if and when future rebates are required.”

“While the Public Utilities Board confirmed that the rebate paid in early May was in accordance with Order 43/11, the Corporation understands that certain policy holders were surprised and disappointed with the size of their rebate,” said McLaren.

“The Corporation continues to be in a strong financial position, anticipating that our net income to be about $20 million, before this additional rebate” said McLaren.

The timing of these additional cheques will depend on PUB’s review and approval, explained McLaren.