Manitoba's Public Utilities Board approved an overall rate increase of 0.9 per cent for compulsory auto insurance premiums in the province, voicing concerns about operating expenses at Manitoba Public Insurance.
“MPI is committed to rate stability for Manitoba drivers,” stated a spokesperson for MPI. “For 14 of the last 15 years, the Corporation has either held the line, or reduced rates. This has resulted in a cumulative, total rate decrease of 17.8 per cent for Manitoba vehicle owners.”
But according to Manitoba’s PUB, the board “continues to have significant concerns” about MPI's operating expenses, adding that MPI “must control its expenses.”
“MPI is to file a benchmarking framework along with benchmark indicators to which the Corporation intends to be accountable,” PUB stated in its press release, adding that it has directed MPI to review staffing levels and cost control.
The premium increase would take effect March 1 for all major classes combined.
The PUB regulates the auto insurance premiums charged by MPI, the government-run monopoly. Vehicle owners in that province must purchase MPI’s Basic Autopac coverage, which includes third-party liability, collision, upset and comprehensive. (continued.)
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MPI had asked for an increase to its Basic Autopac rates of 1.8 per cent last June for the 2014/15 insurance year. Overall, rates decreased by 4 per cent in 2011, 8 per cent in 2012, while remaining stable for 2013.
The March 2014 increase in rates will translate into rate increases or reductions, depending on class.
For example, private passenger rates will increase by 0.9 per cent, commercial will drop by 1.6 per cent, the motorcycle class will drop by 6.1 per cent, trailers will increase by 6.1 per cent, while off-road vehicle rates will drop overall by 12.5 per cent.
In October, MPI reported a profit of $41.9 million for the first six months of 2012.
Manitoba operates a no-fault system, where an accident victim who is catastrophically injured has no right to sue for economic loss that exceeds MPI's prescribed schedule of payments.
