Saskatchewan Government Insurance (SGI) will be providing its auto insurance customers with a one-time rebate this spring.
The Crown corporation said that the rebate is thanks to a strong stabilization reserve and fewer crash claims during the pandemic, which led to about $350 million in earnings. SGI will give back about $285 million of those earnings back in the form of a one-time rebate which will vary by customer, with the amount based on the proportion of vehicle premiums paid in the last three years.
The remainder of the earnings will go toward improving long-term injury benefits, an SGI release said.
SGI also said that while details are being finalized, the average rebate is expected to be about $285 per vehicle – approximately 26% of an average annual premium.
“So if you’ve had vehicles that were more expensive to insure, then your rebate is naturally higher,” explained Minister Responsible for SGI Don Morgan. “If you’ve got a number of vehicles, then of course you’ll receive a larger sum as well.”
The rebate will apply to any vehicle registered in the province, including trailers and school buses, Morgan explained. This means that school divisions and trucking companies may potentially receive the largest rebates.
CBC News also reported that SGI is also enhancing long-term injury benefits for people injured in vehicle crashes. The insurer said that customer requiring assistance with daily tasks will see the maximum payments for those services increased “to better reflect current market rates.” This change will affect over 1,100 customers.
The insurer will also no longer reduce income benefits if customers are also receiving a CPP payment; this affects about 200 people.
