It has already been revealed that the Manitoba government would be offering auto insurance rebates as part of its efforts to provide financial relief amid COVID-19 – and now we have more details on Manitoba Public Insurance’s (MPI) announcement that it is returning up to $110 million to auto insurance policyholders.
According to a release from the Crown corporation, the rebates will be based on the amount of money policyholders paid last year. The rebates are expected to be around 11% – or between $140 and $160 – per average policyholder.
“Many Manitobans have been financially impacted by this crisis,” said Crown services minister Jeff Wharton in a statement. “MPI is proactively providing relief when it is needed most by issuing rebates to its customers as an alternative to future reduced premiums.”
MPI explained that it is able to provide rebates due to a surplus resulting from fewer claims during the pandemic period. The insurer also cited its “strong year-end financial results,” allowing excess capital to be returned to policyholders via rebates.
“This money is expected to provide financial assistance to Manitobans during this unprecedented crisis,” commented MPI president and CEO Ben Graham. “We have made significant improvements in our operations to deliver value to Manitobans resulting in stronger financial results.
Aside from announcing a rebate program, MPI also revealed that as of mid-April, collision claims have dropped 48% compared to the same month last year. The insurer estimated that public health orders for people to stay home have resulted in about $29 million in fewer basic claims being incurred during the period of March 15, 2020 to April 15, 2020.
Last month, MPI – which manages Manitoba’s driver licensing systems as well as the province’s basic auto insurance – suspended all road testing as a safety precaution due to the pandemic. The company gave assurances that customers can rearrange their appointments for knowledge tests and enhanced identification interviews, and that it will contact customers whose tests were cancelled to discuss rescheduling.
