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January 31 , 2001 Letters
to the Editor -- The Manitoban Dear Editor, Stephen Fletcher's recent article deserves a detailed response to clarify information that misinforms readers about the true nature of auto insurance in Manitoba. I respect Mr. Fletcher's feelings and understand his desire to voice his concerns. However, too much of what was said is misleading and deserves correction. When it comes to auto insurance rates, Manitobans of all ages generally pay premiums that are consistently amongst the lowest in the country, according to independent studies by respected organizations such as Runzheimer Canada. Next year, Manitoba motorists will receive the full benefit of a 16.6 per cent one-time discount, marking the third year in a row that most vehicles owners will be paying less for their auto insurance. Over the last three years, that's about $100 million that Manitobans have saved in vehicle insurance premiums. Further, MPI is a Manitoba-owned and operated organization that is committed to this province. Just one example is how MPI uses its investment income. Instead of sending surpluses back to overseas or eastern owners, MPI uses this to help keep down the cost of premiums - by more than $80 for each policy last year. Interest from investment income also helps build local facilities through a policy of purchasing health care, school division and municipal bonds. Over three decades of operations, MPI has put more than $1.3 billion back into Manitoba communities this way. Many of Mr. Fletcher's comments about auto insurance seem to reflect personal beliefs. We can't argue with "beliefs," but we do have an obligation to correct factual errors. Let's start with the basics. Manitoba students - like all Manitoba motorists - pay amongst the lowest insurance premiums in Canada. MPI doesn't discriminate on the basis of age, sex, or marital status unlike many private insurers. We believe that your driving and claims record should determine how much you pay. In private insurance jurisdictions, younger drivers frequently have difficulty getting insurance, never mind paying for it. A younger driver who has been involved in an accident or two is likely to face a premium of thousands of dollars under a private-insurance system. Unfortunately, this is a story that is seldom told to students, such as those represented by Mr. Fletcher. Mr. Fletcher's criticism of the Personal Injury Protection Plan (PIPP) cannot go unchallenged. The protection offered by PIPP is a right provided to all Manitobans injured in automobile related accidents, not just premium payers. Mr. Fletcher suggests PIPP does not provide adequate protection and implies the tort system offers a better alternative. The tort system - in which injured parties sue the responsible driver/owner - doesn't come close to providing the level of protection and entitlements to the vast majority of people as does the PIPP program. Indeed, people responsible for their own injury, as Mr. Fletcher describes in his article, would receive no benefits in a pure tort system whereas the PIPP program provides indexed benefits for life which total between $4 million and $7 million. This tort system often left injured parties as described by Mr. Fletcher, institutionalized and living on welfare. At nearly $3,400 per month, MPI's personal assistance benefits are among the best available in the country. Every insurance system, whether public or private, tort or PIPP-based, has parameters based on the cost of providing coverage. In Manitoba, the level of care an individual receives is not dependent upon whether an injured person hits a moose, a telephone pole or another vehicle. All Manitobans are covered. In
a PIPP system, every injured person is entitled to
a range of benefits tailored to the unique circumstances of each
individual and indexed to prevent erosion from inflation. In his article, Mr. Fletcher selectively discusses only a small number of PIPP benefits available. A student, as described by Mr. Fletcher would also be eligible for additional benefits including: vocational assistance including paid tuition, tutoring, study assistants, specially-equipped technical equipment such as computers, mobility aides, transportation assistance including the purchase of a specialty vehicles, renovations to a home or office to meet the claimants needs and even clothing expenses to meet special needs. All entitlements are indexed to inflation and are not "arbitrary." Lump sum permanent impairment benefits are based upon internationally-recognized medical criteria. The annual income replacement indemnity (IRI), like all benefits, is indexed. It was and is set at a level to provide the maximum number of Manitobans with a maximum benefit. The IRI provides full coverage for about 98 per cent of Manitobans based on an independent measure of average wages in this province. Anyone whose income exceeds this level can easily purchase optional "top up" coverage. None of this is news to Mr. Fletcher. It is disappointing that Mr. Fletcher does not believe MPI has met his standard of fairness. Mr. Fletcher is a individual who has never hesitated to put forward his views. However, we have a responsibility to ensure that readers have the opportunity to make their own decisions about issues based on all the facts. I appreciate the opportunity to start that process with this letter. A good place to continue would be at MPI's web site, www.mpi.mb.ca For 30 years, MPI has operated on the principles of providing good value, excellent coverage and being a responsive, locally-owned and operated organization that listens to its customers. I hope this letter has underlined this for readers of The Manitoban. Sincerely, John
Douglas
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