MPI requesting rate decrease and rebate for Manitoba drivers

WINNIPEG -

If things go according to plan, Manitoba drivers could be receiving a rebate cheque early next year thanks to Manitoba Public Insurance (MPI).

MPI announced Monday that it has filed its rate application to the Public Utilities Board (PUB) and it has requested a rate decrease of 2.8 per cent.

MPI said the application includes the removal of the Capital Release provision that has given a five per cent discount as part of the rate.

With the provision being removed, MPI said a separate application would be filed to request a rebate of $155 million.

"The reduction in rate is really due to responsible management for finances," said Eric Herbelin, who is the president and CEO of MPI.

"Also the way we manage out expenditures in a very controlled way."

Herbelin noted there are some variations in interest rates as well that are allowing the decrease.

Crown Services Minister Jeff Wharton said in a news release said this will be beneficial to Manitobans as they have felt the impact of the pandemic.

"We are pleased that this rebate will be welcome news for our community as we all work together in getting through this challenging time in our province," Wharton said in the release.

The PUB is scheduled to have hearings on the request in October and its order is normally shared in December.

If the PUB approves these requests, Manitobans could receive a rebate cheque of between $150 and $200 by the beginning of next year and the average premium for a vehicle would be $1,130.

"We feel like we are the level prior to the pandemic in that regard and it allows us to adjust our rate indicators to a stable level," said Herbelin.

MPI said if approved, the rate decrease would go into effect on April 1, 2022, but due to different renewal rates, some drivers won't pay their new rates until March 31, 2023.