An advocacy group is calling on Manitoba Public Insurance (MPI) to reconsider their proposed rate increase, citing concerns about the potential impact on drivers.
The group, called “Present Gain for Future Pain,” argues that the proposed 3.7% rate increase would place an unfair burden on drivers, particularly those who are already struggling financially due to the ongoing COVID-19 pandemic.
According to the group’s spokesperson, the rate increase would result in an additional $50 per year for the average driver, which may not seem like much, but can add up for families who are already facing financial difficulties.
The group also points out that MPI has reported a significant surplus in their financial statements, with a projected $100 million in profits for the current fiscal year. They argue that this surplus should be used to offset any potential rate increases.
In response, MPI has stated that the proposed rate increase is necessary to cover rising claims costs and to maintain the financial stability of the organization. They also note that the rate increase is lower than the 4.9% increase that was initially proposed.
However, the advocacy group argues that MPI should prioritize the financial well-being of their customers, rather than solely focusing on their own profits.
They are calling on MPI to slam the breaks on the proposed rate increase and to instead find alternative solutions to cover their costs, such as reducing administrative expenses or implementing cost-saving measures.
The group also urges MPI to consider the long-term impact of the rate increase on drivers, particularly those who may be forced to make difficult financial decisions in order to afford their insurance premiums.
As of now, MPI has not made any changes to their proposed rate increase, but the advocacy group remains hopeful that their concerns will be taken into consideration.
In the meantime, drivers in Manitoba will have to wait and see if MPI will heed the call to prioritize their customers’ financial well-being over their own profits.
