Manitoba’s farm lobby group is relieved that the province’s crown corporation overseeing auto insurance will give back all of a $75 million surplus to taxpayers.
On Nov. 2, Manitoba Public Insurance announced it would give $20 million of the surplus to three Manitoba universities, and $10 million for a new computer system for the government’s driver and vehicle licensing branch. The announcement prompted an outcry from car owners, most of whom believed they should get the surplus because it came from premiums they paid.
The part of the premium that MPI planned to donate to universities worked out to $38.73 per policy.
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Keystone Agricultural Producers lashed out against the plan.
Most farm families insure at least three vehicles, KAP president Don Dewar said – a pickup, a car, and a grain truck.
Dewar said he believed the surplus should be given back to taxpayers.
He suggested that some of it could be spent on driver education designed to lower premiums over the long term. KAP found little support from MPI when it wanted to advertise new farm machinery lighting regulations a couple of years ago, he added.
On Nov. 8, MPI and government officials gave in to public pressure and announced the surplus would go back to drivers.
The Public Utilities Board will now review MPI’s plan. If approved, Manitoba vehicle owners will save an average of $91 per policy next year.
