Manitoba Public Insurance misplaced a courtroom battle with the Public Utilities Board, and now some drivers might discover themselves paying extra — and even much less — for future insurance premiums.
MPI took the PUB, which is tasked with setting charges which might be simply and cheap, to courtroom over a directive the utilities board gave to undertake the first driver mannequin as a substitute of the present registered proprietor mannequin.
Currently when a Manitoba driver pays for car insurance, their price and any reductions are primarily based on the driving historical past of the registered proprietor of the car no matter who’s driving it.
The PUB needed MPI to put together to change its system to a major driver mannequin. It would imply Manitoba residents would pay their car insurance charges primarily based on the historical past of the first driver as a substitute of the registered proprietor.
The change might convey vital financial savings to major drivers who’ve a document of unpolluted driving within the province and rating excessive on the driving force security score scale whereas the alternative can be true for drivers within the pink.
Drivers on the prime of MPI’s security score scale can save up to 37 per cent on their annual insurance whereas these with previous infractions or claims might see no financial savings in any respect. The distinction interprets into doubtlessly tons of of {dollars} in further car insurance charges.
Account for precise drivers: Intervenor
The Coalition of Manitoba Motorcycle Groups has been advocating for the change and was an intervenor within the case arguing the present system shouldn’t be honest.
“It will never account for the people who are actually driving the vehicle, and the people who are driving the vehicle are the people who are causing accidents on the road,” coalition lawyer Charlotte Meek mentioned in an interview.
“This is an issue for all ratepayers. Good drivers are subsidizing bad drivers.”
Court of Appeal Justice Freda Steel rejected the insurer’s request to enchantment the PUB’s directive that MPI develop a five-year plan for the eventual implementation of the first driver mannequin.
“The challenge to the PUB’s jurisdiction over the methodology underlying the DSR [driver safety rating] system has no reasonable prospect of success,” Steel wrote in an Oct. 19 resolution.
Steel’s resolution mentioned solely Manitoba, Saskatchewan and B.C. assess threat and premiums utilizing the registered proprietor mannequin, whereas non-public North American insurers make the most of the first driver mannequin.
MPI did not plan rapid change
Earlier this 12 months, MPI mentioned it deliberate to preserve utilizing the present mannequin and would not be making any adjustments for the following 5 years.
“It felt that any significant change to this model would create large rate dislocation and require significant regulatory changes, as well as significant information technology (IT) changes,” Steel’s resolution says.
The PUB mentioned MPI failed to obey a number of earlier directives it gave the Crown company.
“When the [PUB] issues directives [MPI] may choose to file a request for variance or seek leave to appeal from the Manitoba Court of Appeal. [MPI] may not simply refuse or fail to comply with the directive,” the PUB said.
MPI utilized to enchantment the PUB’s directive arguing it wasn’t merely an information-seeking however moderately a compulsory order past the utility’ board’s jurisdiction.
Steel discovered the proposed floor of enchantment did not warrant the courtroom’s consideration.
She acknowledged there could also be difficulties in implementing the brand new mannequin, as MPI raised issues about privateness if it have been required to acquire the identities and driving data of major drivers.
MPI spokesperson Kristy Rydz mentioned the general public insurer would not enchantment the choice and has offered the data requested by the PUB.
“Going forward, MPI will continue to work collaboratively with the PUB toward a driver safety rating model that is both actuarially sound and provides the greatest value for Manitobans,” she mentioned in an e mail.
