MPI proposes $16 million in rebates
Drivers in Manitoba could be getting another rebate, this time for $16 million, if a proposal from Manitoba Public Insurance (MPI) is approved by the Public Utilities Board (PUB.)
Over the past month, MPI, following the direction of the PUB, distributed to ratepayers a 45 per cent rebate of vehicle premiums paid in the 2009/10 insurance year.
Now the provincial insurer is asking to issue another rebate of $16 million, which would be a five percent top-up of the earlier rebate of $320 million. The most recent rebate, like previous rebates, was calculated on premiums paid in the 2009/10 insurance year.
“In effect, the Corporation is asking that all ratepayers receive the “greater of” a calculation based on both premiums paid in fiscal year 2009/10 and on the 2009/10 insurance rating year,” Marilyn McLaren, president and CEO of Manitoba Public Insurance said in a statement.
“This will ensure affected customers receive a rebate based on the calculation that is most advantageous to them and eliminates any potential disadvantage based on their particular vehicle or Autopac insurance purchasing decisions,” she added.
CAA Manitoba and the Consumers Association of Canada (CAC) recently requested that the Public Utilities Board review the most recent rebate and the method used to determine the amount of rebates to customers. MPI said it agrees that the rebate distribution process needs to be examined.
“The corporation will be asking PUB to consider using this “best of two calculations” approach if and when future rebates are required,” McLaren said.
“While the Public Utilities Board confirmed that the rebate paid in early May was in accordance with Order 43/11, the Corporation understands that certain policy holders were surprised and disappointed with the size of their rebate,” she added.
