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Changes made to Manitoba’s Automobile Insurance Plan will mean customers will have one less method to pay for their auto insurance premiums – a move that could save the province’s public insurer a lot of cash.
After May 23, Manitoba Public Insurance (MPI) will no longer accept pre-authorized monthly credit card payments for premiums. A spokesperson said the move will save itself “several million dollars” per year. The omission of the payment method affects about 100,000 customers, the spokesperson added.
“As payment card industry standards continue to evolve, the cost to all MPI ratepayers to continue to offer this payment option would be prohibitive,” MPI media relations coordinator Brian Smiley said in a statement.
Despite the change, customers can still use their credit cards if they are paying for the insurance annually in one lump payment, either through the four-payment financing program or if they do not opt to use a pre-authorization.
Those who are signed up with a pre-authorized plan are encouraged to visit a broker or the nearest MPI service centre to make the change. CBC News reported that customers affected by the new rules will receive a notification together with their renewal or reassessment notice.
The amendment to insurance payments – approved through a provincial cabinet order by the premier and his cabinet on March 19 – comes after an issue between MPI’s board and the Insurance Brokers Association of Manitoba (IBAM). IBAM disputed MPI’s plan to move some basic insurance transactions online, saying that such a move could leave brokers and agents in the dust.
Smiley would not say whether the amendment to payment methods would impact online services.
Crown Services Minister Colleen Mayer said in a statement that the change was approved for security reasons.
“Ultimately, the proposal that Manitoba Public Insurance brought forward was one aimed at ensuring the sensitive financial data of ratepayers is protected and it is one we agree with,” she explained.
