[Originally sent via email]
It is with great enthusiasm and excitement that I inform you of the outcome of our participation as a Registered Intervener in this yearís Manitoba Public Insurance Rate Application. I apologize for the lengthy email, however, there is an abundance of information to share.
Since we began intervening in 2004, this is now the second time we have successfully had triple digit increases for moped-class bikes capped at a more reasonable 20-25%.
Normally, rate DECREASES are also capped at 20%, however, in this yearís hearing we argued successfully for the Board to allow the proposed decrease for motorscooters while applying the cap to the increase.
With the significant decrease in motorscooter rates, the cost difference of insuring as a moped versus a motorscooter is much less (in the range of $70-80 difference). This means that if you have your Class 6 license, you can insure your moped-class bike as a motorscooter (under 100cc) and not pay a huge differential. Once your vehicle registered and insured as a motorscooter, the dilemma of the 50 km/hr limit and passenger restriction no longer applies (passenger-related restrictions on Class 6 learners permits and graduated licenses still apply).
We cannot continue this type of work without the support and encouragement of our membership. If you can afford to support Scootering Manitoba through a donation or Paid Membership, I ask that you consider doing so.
I believe we could not have hoped for a better result and I am sure you will agree. See the detailed information below.
Claudio Sousa, President
When do these rate changes take effect?
These take effect March 1, 2007. If your renewal date is before this date, you will be subject to the 2006 rates. If your renewal date is on/after this date, you will be subject to the changed rates.
What does this mean for you?
1. If you ride a moped, you will pay approximately $20 more for your basic insurance
2. If you ride a motorscooter, your basic insurance premium amount (see your statement) will be reduced by approximately 70% (actual decreases will vary by engine size and declared value).
3. If you have your Class 6 (approximately 25% of moped owners do), you have more comparable rates and can choose to pay a bit extra to have your moped registered as a motorscooter, thereby, avoiding the problems associated with de-restricting your bike to go faster than 50 km/hr.
4. If you donít have your Class 6 but can afford the time and cost, consider taking it this year so youíll have more choice in how you register and insure your bike.
What did MPI Originally apply for?
1. A 100% increase to Mopeds
If approved, this would increase the typical insurance costs of a moped-class bike by $80-$100. There are approximately 1,400 registered moped-class bikes in the province.
2: On average, a 70% reduction for motorscooters (scooter-style bikes >= 50cc or faster than 50 km/hr).
3. Moped Rental Use to Be Separated
Effective next year, MPI would place rental mopeds in a separate class, ensuring that accidents relating to rentals don't affect personal rates and vice-versa.
How did the Public Utility Board Rule?
1. The proposed moped increase to be capped at 25%.
2. The decrease to motorscooters, averaging 70%, to be allowed as an exception.
3. Rental use will be segregated as proposed.
I have questions about this, who can I direct them to?
Please feel free to contact me by email or post your question on our Forum.
7. Scootering Manitoba
While Scootering Manitoba did not attend the PHC, it
subsequently expressed interest in participating indicating an
intention to examine the significant premium increases
proposed for mopeds and motor scooters, from the perspective of ďrate shockĒ. Scootering Manitoba intends to examine the
evidence and make closing argument towards ensuring fairness
Scootering Manitoba reported that it will not call a witness
or apply for costs. The Board, noting that Scootering
Manitoba has been a responsible intervener in past hearings,
will grant Intervener status to Scootering Manitoba.
- July 6, 2006
Board Order 103/06
At the hearing, the Board noted a willingness of MPI to work with SM to distinguish between
private-use owned mopeds and mopeds held in rental fleets. The Board recommends that MPI
act on its inclination and work with CMMG to improve the perception, if not the reality, of
fairness of approach to mopeds.
As to moped rates, the Board rejects MPIís proposal to increase the rates by in excess of 90%,
and will approve increases of up to 25%. While slightly in excess of the normal cap of 20%,
with the low average dollar premiums involved, the Board is satisfied with a 25% increase for
mopeds. This will allow the actual moped rates to move towards the indicated rate over four
years, while experience is unfolding concerning the segregation of rental mopeds.
As to the Boardís acceptance of large decreases in motor scooter rates, the Board notes that there
are less than 100 motor scooters and that relative to mopeds, and there are clearly classification
issues to be resolved between mopeds and scooters, premiums have been too high for too long.
- November 20, 2006
Order No. 156/06
The Board agrees with SM that MPIís proposal to reduce motor scooter premiums by 94% after
years of increases being applied suggests that while much has been done over the years to
improve the classification and premium setting model, it is clear that more work likely remains
ahead. Presenter Hyworren raised an issue related to newspaper carriers that may represent this
sort of matter. Through this hearing and other processes, MPI learns of issues for its
policyholders, issues that when researched thoroughly, may lead to changes that reflect increased
A further example of this arising out of SMís intervention to these proceedings is MPIís
separation of rental mopeds from individually owned mopeds; a move expected to improve the
relationship between cost causation and premiums for mopeds.
The Board joins with SM in recognizing that outdated legislation and insurance definitions
should be addressed, and recommends to MPI that it bring these matters to governmentís
attention with its support.
- November 20, 2006
Order No. 156/06
5.0 BOARD DIRECTIVES:
BE IT ORDERED THAT:
1. MPIís proposed 2.6% overall decrease in Basic motor vehicle premiums and fees
for the Basic Automobile Insurance Program for the year ending February 28,
2008 be and is hereby approved, except for the following amendments:
a) reduce the average increase in motorcycle rates to 5% rather than the
proposed 8.4%; and
b) cap increases in moped premium rates at 25% per annum, while retaining
the 20% cap for increases for other vehicles (no cap for motor scooter
the amendments to be made without affecting premiums for any other class or
- November 20, 2006
Order No. 156/06
Page 88 _________________ "All Your Base Are Belong To Us"
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