MPI ordered to pay back 45% rebate
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Hey there, time traveller!
This article was published 31/03/2011 (5429 days ago), so information in it may no longer be current.
Manitoba’s Public Utilities Board today ordered Manitoba Public Insurance to return $320 million to car owners by May 31.
The decision means MPI ratepayers will see a 45 per cent rebate — up from 10 per cent originally ordered by the public regulator.
The rebate means if you paid $1,000 on your 2009/10 insurance, you’ll see a cheque for $450.
PUB’s order comes a day after MPI officials had their knuckles rapped at a special PUB hearing over the recent revelation an external study found the Crown corporation didn’t need $250 million it had socked away for injury claims.
PUB chairman Graham Lane said MPI should have told the PUB about the money a lot sooner that it did — news of the extra $250 million was first announced by Attorney General Andrew Swan two weeks ago.
“Effective regulation can only be achieved in an atmosphere of openness and transparency involving, at least, the regulated entity and its regulator,” PUB chairman Lane said in today’s decision.
“Failure to achieve that “atmosphere” is not in the public interest, and the Board expects and looks forward to a changed approach by MPI to its meeting its responsibilities with respect to that “atmosphere”. Both MPI and this Board are mandated to operate in the public interest, and MPI itself was established to work for the benefit of its insureds, Manitobans.”
The full order (44/11) is also on the PUB’s website.
MPI said in a release the unprecedented $320-million rebate is the result of the annual actuarial review of the corporation’s claims reserves by Ernst & Young.
The excess retained earnings were accumulated to provide for future costs arising from injured claimants, as part of the Personal Injury Protection Plan.
MPI says it now has sufficient historical information to better estimate future reserve requirements.