Public Utilities Board approves special rebate application: Manitoba Public Insurance

Manitobans have been financially impacted by the COVID crisis and MPI is proactively providing relief by issuing rebates to its customers as an alternative to future reduced premiums. Manitoba Public Insurance has been given approval to return $110 million after its special rebate application was approved this week by the Public Utilities Board.

“The COVID pandemic has financially affected many people in our province and this rebate of $110 million will provide immediate relief for many Manitobans,” said Crown Services Minister Jeff Wharton. “We’re working hard across government and with our partners to find ways to provide relief to Manitobans who need it and MPI was in a strong financial position to offer this rebate.”

Rebates will be based on what policyholders paid last year and are expected to be around 11 per cent, or around $140 to $160, per average policyholder, who can expect a rebate cheque at the end of May to early June.

MPI’s CEO & President Ben Graham explained the rebate was made possible by the combination of fewer claims during this COVID period, coupled with strong year-end financial results and MPI’s exceptionally strong reserves which will not be adversely affected by the rebate.

“We continue to ensure that we keep our customers needs and best interests at the forefront of everything we do – whether in managing our business with financial prudence, providing service options throughout the pandemic or transferring the use of some MPI facilities to assist others in dealing with COVID,” said Graham.

Under existing legislation, MPI was able to immediately return approximately $50 million to its ratepayers, but required the approval of the PUB for the additional $60 million.

“I’m also very pleased our special rebate application was expeditiously dealt with by the PUB,” said Graham. “MPI continues to work with the PUB in full collaboration and transparency; the end result being a positive outcome for Autopac premium payers.”

In addition to rebating excess capital from the last financial year, MPI reported that as of mid-April, collision claims were down 48 per cent compared to the same month a year ago. MPI estimates that public health orders directing the public to stay at home and for non-essential businesses to cease direct interaction with the public have resulted in approximately $29 million in fewer basic claims being incurred between March 15 and April 15, 2020.

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