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Contracts with SGI no longer required to licence vehicles in Saskatchewan


October 15, 2010   by Canadian Underwriter


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Saskatchewan motorists will be able to buy or renew vehicle licences at agencies that do not have contracts with SGI Canada, effective Jan. 1, 2011.
Previously, only insurance brokers holding contracts with SGI could sell or renew vehicle licences. Saskatchewan’s policy change will allow insurers with agency distribution models, direct writers or banks with insurance operations to issue SGI motor licences.
The policy decision has come under fire by the Saskatchewan New Democrat Party.
In a statement, NDP house leader Kevin Yates said the government is “intent on rewarding big banks and dismantling SGI’s market share.
“These banks all have their own insurance packages and will now be able to sell plates and SGI licenses without having to sell SGI insurance as an option,” he said.
“The Wall government’s SGI policy change will undoubtedly create disastrous consequences for Saskatchewan’s independent insurance brokers.”
Tim McMillan, the minister responsible for SGI, told Saskatoon’s Star Phoenix that the final version of the policy has not been written and the government is willing to exclude banks from selling licences and plates, “as it was a concern raised by the Insurance Brokers Association of Saskatchewan,” the paper reported.


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