MPI proposes lower premiums

Manitoba’s crown corporation insurer, Manitoba Public Insurance (MPI), has applied to the province’s Public Utilities Board for an overall premium reduction of 1.2%. This will be the fourth consecutive year of rate reductions for the province’s drivers, the crown insurer says.

The proposed premium reduction for 2002 would result in an average annual premium of $549 – equal to $3 less than the average in 1998, says Jack Zacharias, president of MPI. “How many things are cheaper today than they were in 1998 – certainly not buying a new vehicle or filling it with gas.”

Some drivers, however, will see an increase in premium rates, the result of being in categories with increased claims costs. Commercial vehicles rates will also rise 11.5% while motorcycle premium rates are expected to increase by 15%.

MPI also tabled its annual financial report with the provincial legislature, citing net income of $46.5 million, with $38.1 million of that coming from its “basic Autopac” policies.